Burstone Group reports its joint acquisition of The Neighbourhood Square, a convenience shopping centre located in Linksfield, Johannesburg, from Investec Property for R380 million.
Burstone’s partner in the transaction is property development and investment company Flanagan & Gerard (F&G). Burstone and F&G will each acquire a 50% stake in the centre.
The purchase takes place after Investec granted Burstone a right of first offer over certain properties following the management internalisation process that saw the transition of Investec Property Fund into the Burstone Group in 2023.
“The Neighbourhood Square is a strategically important asset, and the acquisition reflects our priorities of focusing on property fundamentals and collaborating with best-in-class partners, in this case, Flanagan & Gerard. The deal is a great example of our strategy to deliver income and capital growth over the long-term," said Andrew Wooler, CEO of Burstone Group.
The Neighbourhood Square is a newly built, high-quality, open-air, dominant nodal convenience retail centre. It has strong operating fundamentals and exceptional trading statistics — Zero vacancies, average trade density of c.R7,000/m², WALE of 4.3 years, and c.86% national retail tenants anchored by Checkers and Woolworths.
Burstone is a fully integrated international real estate business with R37 billion gross asset value (GAV) under management and R5.4 billion third-party capital under management.
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