The sale of Bryanston Shopping Centre has received the green light from the Competition Commission.
The Commission approved the proposed transaction in which Cosmo Properties intends to acquire the Target Property from Redefine Retail, subject to conditions.
Cosmo Properties is a newly formed company and a wholly owned subsidiary of a trust. It specialises in the ownership, management, sales, and leasing of shopping centres throughout South Africa.
Redefine Retail is managed by Redefine Properties, a real estate investment trust listed on the JSE.
Bryanston Mall is a 12,000 square metre neighbourhood centre with retail space located at 15 Ballyclare Drive, Bryanston, Johannesburg—one of the country’s wealthiest areas.
The commission said that the proposed transaction is unlikely to lessen or prevent competition in the market.
To address public interest concerns, the acquiring group procured cleaning and security services owned by historically disadvantaged persons (HDPs) for three years after the merger implementation date.
In its latest financial reporting, for the six months ended February 2024, Redefine pointed to the ongoing disposal of non-core assets to boost operational cash flows.
“Despite current liabilities exceeding current assets, the group has a stable liquidity position with
unutilised committed access facilities and cash on hand of R4.2 billion (FY23: R5.5 billion).
“The liquidity test considers expected cash flows in the next 12 months, including operational cash flows, anticipated proceeds from unconditional disposals, funding, and development activities for the next 12 months.”
During the period, Redefine disposed of three properties, with GLA of 26,357 square meters, for an aggregate consideration of R254.4 million at an average yield of 9.3%, various portions of vacant land for a total consideration of R47.4 million, and five residential units at Park Central for a total consideration of R9.5 million.
At the time, agreements, subject to the normal conditions precedent, had been concluded to dispose of one property and a further three portions of vacant land for an aggregate consideration of R56.9 million in the second half of FY24.
Notably, the interim results did not specify Bryanston Shopping Centre as the specific asset, nor did the Commission specify any details about the sale, vis-a-vis the value of the transaction.
Bryanston Shopping Centre was formally developed as a community centre at the end of September 1971 and has catered to the affluent community of Bryanston for over five decades.
The centre is accessible from Winnie Mandela Drive, formerly Willian Nicol, and is centrally located and offers total convenience.
Current tenants include Checkers, Clicks, Woolworths, Shell, @Home, Capitec, Absa and over 30 more.
Richest area in South Africa
According to a recent property newsletter by Lightstone, Bryanston is the most popular area for homes priced over R1 million, when looking at total purchase price and sales numbers in 2023.
Bryanston emerged as the most popular suburb in terms of both volume and total purchase price for both years, with 802 homes bought for R1 million and an overall total purchase price of R2.69 billion.
Sea Point in Cape Town secured second in 2023, with its 679 homes going for R2.59 billion.
Midstream Estate in Centurion slipped from second place in 2022 to third place in 2023, racking up R2.1 billion in sales.
Sibaya Coastal Precinct in KwaZulu-Natal took the fourth spot, followed by Sunningdale in the Western Cape, ranked fifth in 2023.
Val de Vie in Paarl and Fresnaye in Cape Town, placed fourth and fifth in 2022, lost their positions in the top five in 2023.
The table below lists the top five suburbs by the most transfers with purchase prices greater than R1 million.
| # | Suburb | Province | Volume | Total purchase price |
|---|---|---|---|---|
| 1 | Bryanston | Gauteng | 802 | R2.69 billion |
| 2 | Sea Point | Western Cape | 679 | R2.59 billion |
| 3 | Midstream Estate | Gauteng | 567 | R2.10 billion |
| 4 | Sibaya Coastal Precinct | KZN | 419 | R1.72 billion |
| 5 | Sunningdale | Western Cape | 537 | R1.49 billion |