October 2024 marked the 10th anniversary of the strategic partnership between Futuregrowth Asset Management and Capital Land Asset Management in the growth of the Community Property Fund (Comprop).
This collaboration has significantly transformed the landscape of township and rural shopping centres in South Africa.
In October 2014, Futuregrowth and Capital Land joined forces to reposition and expand Comprop, a flagship fund of Futuregrowth.
At that time, Comprop held 17 shopping centres valued at R1.8 billion. Today, the portfolio boasts 25 shopping centres with a combined value exceeding R8 billion and a total gross lettable area of over 438,000m².
Despite challenges such as loadshedding, poor municipal service delivery, COVID-19, the July 2021 riots, and weak economic conditions, Comprop has achieved an impressive 10-year annualised return of 12.4% as of September 30, 2024.
This success underscores Comprop’s position as one of South Africa’s largest specialist property funds focused on high-growth township and rural retail markets.
Comprop’s growth strategy has centred on acquiring quality shopping centres with strong income growth potential.
Key acquisitions include Eyethu Orange Farm Mall, Heidelberg Mall, The Crossing Shopping Centre, King Senzangakhona Shopping Centre, Murchison Mall, Sam Ntuli Mall, KG Mall, and Boitekong Mall.
Active management and strategic tenant mix enhancements have reduced the portfolio’s vacancy rate from 8.6% in October 2014 to 3.9% in September 2024.
Significant value has been added through expansions and redevelopments, such as Thulamahashe Plaza and Motherwell Shopping Centre, and the inclusion of Boxer as an anchor tenant at several locations.
A key focus of Comprop’s strategy is local employment and service provision. Over 14,800 people are employed at the shopping centres, with 80% residing in the surrounding communities.
Over the past decade, operations have advanced through a compliance-driven, technology-focused approach.
Capital Land’s proprietary software has enhanced portfolio management, while a commitment to environmental sustainability has led to the implementation of 12 solar energy projects, totaling over 14,000 kWp.
Notably, a 3.2 MWp, 3.1 MWh hybrid power project at Heidelberg Mall ensures uninterrupted power and significant electricity savings.
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