Diepsloot Mall bought for R128m

Diepsloot Mall, the landmark shopping centre on William Nicol Drive between Lanseria and Fourways, has been bought in a R128m transaction. The mall, the only formal retail outlet in Diepsloot, opened in late 2007 and is destined to become an important formalised retail hub for residents of neighbouring Diepsloot township and the surrounding residential districts.

The contract for the purchase of the 11,465sq m mall was negotiated by Advent Asset Management on behalf of the CPF earlier this year. It was bought by Futuregrowth Community Property Fund (CPF) from Masingita Property Investment, and the transaction was completed in mid-April.

The shopping mall is currently more than 99% let and is anchored by one of the busiest Shoprite stores in Gauteng.

The area is to the west of the planned PWV9 freeways which will run to the east of Lanseria and north of Fourways and had been earmarked by local government for extensive infrastructure and transport upgrading and development. Public transport initiatives include a Bus Rapid Transport (BRT) network and municipal bus service as well as the Gautrain Station in Midrand.

Futuregrowth's socially responsible investment (SRI) specialist, Angelique Kalam, said that the combined factors would contribute to growth in the area and she expected to see it become a major retail node, independent of Fourways.

"There are no other formal retail facilities in Diepsloot. Fourways may be considerably larger than Diepsloot Mall, but it caters for a completely different market."

The inclusion of Diepsloot Mall in the CPF portfolio takes the gross lettable area of the fund to 378,127sq m and makes it the 26th shopping centre in the R2,5bn fund which focuses on retail developments in township and under-serviced rural areas.

Futuregrowth fund manager James Howard said that the mall attracted thousands of people, many of whom walk from their homes nearby. "Based on turnover, Shoprite is the busiest in Gauteng: we believe that this mall will prove a major benefit to our portfolio."

Get commercial property news by email

Free alerts when we publish — pick a focus or get everything, unsubscribe in one click. Subscribe »