JSE-listed real estate investment trust Fairvest has announced the acquisition of five commuter-focused retail properties in KwaZulu-Natal and the Western Cape for a combined value of R477.7 million, continuing its strategy of investing in retail assets that serve previously disadvantaged communities.
The portfolio, acquired at a blended yield of 9.81%, reinforces Fairvest’s commitment to growing its exposure to high-footfall, convenience-based shopping centres located near public transport and community hubs.
Fairvest holds a portfolio of 127 retail, office and industrial properties valued at R12.5 billion (held directly and through subsidiaries).
The average value per property held as at 31 March 2025 was R98.1 million.
Fairvest concluded separate agreements with various parties, including Collins Property Group, Manguzi Shopping Centre, and Bishops Court Properties, to secure five retail assets, all anchored by national tenants such as Shoprite, Boxer, SuperSpar, and OK Furniture.
These acquisitions are aligned with the group’s focused investment strategy and offer attractive initial yields, it said in a statement. The assets serve resilient consumer nodes and support Fairvest’s long-term objectives of sustainable income growth.
| Property Name | Location | Gross Lettable Area (m²) | Purchase Price (R) |
|---|---|---|---|
| Nquthu Shopping Centre | Nquthu, KwaZulu-Natal | 4,895 | R66.6 million |
| Ulundi Shopping Centre | Ulundi, KwaZulu-Natal | 4,476 | R38.9 million |
| Eyethu Junction | Madadeni, KwaZulu-Natal | 7,498 | R103.2 million |
| Manguzi Shopping Centre | Manguzi (Kosi Bay), KwaZulu-Natal | 8,425 | R136.0 million |
“Fairvest is making consistent progress in transforming its diverse portfolio by improving the quality while pursuing its aim of becoming a retail-only REIT servicing low-income communities in South Africa.
“This is achieved by disposing of non-core assets and reinvesting in retail-focused properties. Approximately 70% of revenue is already generated from retail properties,” said CEO of Fairvest, Darren Wilder.
KwaZulu-Natal Retail Centres
Fairvest reached agreements with subsidiaries of Collins Property Group – namely Imbali Props 21 and Colkru Investments – to acquire three strategically located centres across KwaZulu-Natal for R208.7 million at a blended yield of 9.75%.
The acquisitions are subject to customary conditions precedent and are expected to transfer by 1 August 2025.
Manguzi Shopping Centre
Fairvest will also acquire 100% of the shares and claims in Manguzi Shopping Centre Proprietary Limited, which owns an 8,425m² retail centre in Manguzi (formerly Kosi Bay). The centre is anchored by Shoprite, and the R136 million deal was struck at a 9.75% yield.
Transfer of ownership is expected on or about 1 August 2025, pending fulfilment of standard conditions precedent.
Acquisition of Thembalethu Square
The group will acquire Thembalethu Square, located just outside George in the Western Cape, via a newly formed subsidiary, Mzanzi Mall Thembalethu Proprietary Limited, in which Fairvest holds a 51% stake.
The 8,734m² centre is anchored by Shoprite and Boxer, and the deal was concluded for R133 million at a 9.97% yield.
This acquisition is unconditional, with transfer expected to take place by 1 July 2025.
The group on Friday delivered a strong set of interim results for the six months ended 31 March 2025, declaring a cash dividend of 69.66 cents per A share and 23.10 cents per B share, representing full distribution of earnings.
Despite a challenging operating environment, Fairvest achieved an 8.8% increase in distribution per B share, while A share distributions rose 2.7%. The Group expects B share earnings for the full year to grow between 8.0% and 10.0%.
Total revenue (excluding straight-line rental income) increased 6.9% to R1.07 billion, and like-for-like net property income rose by 5.1%. Vacancies were kept low at 5.5%, and the group’s loan-to-value ratio improved to 31.8%, reflecting its conservative financial strategy.
