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Belhar Shopping Centre sold to retail property developer

Belhar Shopping Centre Belhar Shopping Centre

The Airport Shopping Centre in Belhar, Western Cape, was recently sold via a private treaty negotiation facilitated by Nexus Property Group (NPG). The shopping centre, a non-core asset disposed of by a private fund, was purchased in April 2016 by a private retail property developer.

Located on Stellenbosch Arterial Road, the Airport Shopping Centre features a strong tenant mix including anchor tenant Shoprite, PEP, Debonairs Pizza, OK Furniture and KFC, and was 77% occupied at the time of the sale. Boasting 12, 213sm² of gross lettable area, the shopping centre was sold at a 9% yield and has a national tenant ratio of 91%.

According to Elias Tzouvanni, Co-director of NPG, shopping centres of this value and untapped potential are rarely available to purchase in the Western Cape, and the disposal thereof created a unique opportunity for a local investor to take advantage of.

“The corporate disposal created a valuable opportunity to invest in a retail property in a developing area that would otherwise not be on the market,” says Tzouvanni.

Greg Nafte, Co-Director of NPG, says that despite the on-going debate about South Africa’s oversupply of shopping centres, he believes that the number of centres in the country is sustainable.

“In particular, we are seeing continued demand for large scale retail developments in townships and rural areas which target lower income groups. Unlike the affluent suburbs, there are still various developing nodes in South Africa that do not have a retail presence,” says Nafte

“If managed correctly the Airport Shopping Centre has the potential to become a booming retail hub, with the growing surrounding communities playing a key role in the development of the centre.”

Nafte says that this transaction highlights Nexus’ ability to effectively develop asset-specific solutions on behalf of its clients.

“Since NPG was established in 2012, the team has built a track record of national, multi-million rand transactions. We believe that this success is based on our unique approach, as well as the fact that we are not limited by region or property type, and are asset and client-focused.”

He explains that a private treaty negotiation was used to facilitate the sale of the Airport Shopping Centre due to the complexities involved in a deal of this size and nature.

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