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Home » Industry News » Property Development Sector News » Shopping in the suburbs

Shopping in the suburbs

CAPE TOWN-based investment company Trematon Capital, which is steeped in real estate investing, has made a significant acquisition of retail precinct – notwithstanding the lingering effects of Covid-19 still clouding property sector prospects.

Last month Trematon – via its 60% held subsidiary ARIA Property Group – has acquired Riverside Mall in Rondebosch from Redefine Properties.

ARIA already owns the nearby Maynard Mall in Wynberg, meaning ARIA now has a substantial presence along Cape Town’s southern suburb’s main drag.

The Riverside Mall contains a newly upgraded Checkers that anchors the centre – trading alongside Vitacare Pharmacy, PostNet, Crazy Store, Standard Bank, FNB and ABSA.

ARIA will pay R120 million for Riverside Mall – which compares to a property valuation of R110 million given by Redefine in its interim results to end February 2021.

The profit attributable to the Riverside Mall for that six month period was R5.25 million.

Meanwhile niche property player Stor-Age – which specialises in storage units – reported like for-like rental income up 8.6% in its core SA market with total occupancy of 90.1% in the financial year to end March.

The Cape Town-based group said portfolio occupancy was up 28 500m² and the investment property value was up a sprightly 12.3% to R7.57 billion.

Stor-Age reported that the recently completed Sunningdale and Tyger Valley had commenced trading in May this year.

The group said three new development sites had been secured.

Stor-Age CEO Gavin Lucas said: “The past year was one of historic extremes that unequivocally affirmed the resilience of Stor-Age’s business model.”

Lucas pointed out that the continued development of its digital capability meant that Stor-Age could introduce an online sign-up feature which was critical to new tenants in these contact-averse times.

Lucas said Stor-Age’s new property pipeline in SA comprised eight new properties at an approximate development cost of R685 million.

This would add around.46 500m² GLA (gross lettable area) to the portfolio.

Stor-Age is forecasting an increase in dividend distributions for the year ahead of between 3% and 4%.

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