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Akani Properties has acquired the Nicolway Shopping Centre in the affluent suburb of Bryanston on behalf of its client, the Municipal Employees Pension Fund.
The company said the Competition Tribunal has already approved the R1.1 billion transaction. It saw Akani acquire all properties in the Nicolway Precinct, including the Decathlon retail component, and the office building known as Nicolway West offices.
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As a commercial hub, Bryanston has become busier than Sandton since the start of the Covid-19 pandemic, with fuller offices than the latter. Its malls are also benefitting from work-from-home trends and consumers' preference for smaller shopping centres.
The Managing Director of Akani Properties, Zamani Letjane said there are quality tenants with long-dated leases in all the acquired properties. In Nicolway, 75% of tenants are national retailers like Woolworths, Checkers and Food Lovers Market, which have hardly felt the impact of Covid-19.
"The acquisition of Nicolway demonstrates our optimistic view on the recovery of the SA economy from the effects of the Covid pandemic. We are also seeing a shift from large shopping malls to small convenient shopping centres – a growing trend that presents growth opportunities for our property portfolio," said Letjane.
The 100% black-owned Akani Properties has close to R3billion total assets under management. Its existing retail assets include the Glen Village Shopping Centre in Pretoria East, Autumn Leaf Mall in Zeerus, and Parkview Shopping Centre in Johannesburg. It also owns the recently launched R900 million Radisson Hotel and Convention Centre Precinct in Kempton Park.
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