Mall mania hits JSE

Rebosis, whose listing follows hardly a month after that of the R1,8bn Investec Property Fund, gives JSE investors access to the income stream of another highly prized regional shopping centre - Hemingways Mall in East London.

At nearly 80000m², Hemingways is among SA's 20 largest malls. It has the potential to become one of the most lucrative, as it dominates the relatively underserviced Eastern Cape region.

The centre, which opened its doors only 18 months ago, has reported an impressive 32% year-on-year growth in trading densities (turnover/m²) in the first quarter of 2011.

Rebosis' retail portfolio also includes Mdantsane City (35000m²), close to East London, and Bloed Street Mall (26000m²) in Pretoria.

The advent of previously unlisted regional malls (typically exceeding 60000m²) on the JSE is good news for investors, as large, dominant shopping centres are widely regarded as the most profitable sector of the broader SA real estate market.

A research report by Macquarie First South Securities notes that by the end of 2011 the JSE's listed property sector will have stakes in 21 of SA's top 30 malls - up from 14 before the Rebosis listing.

Another six of SA's top 30 retail assets will find their way onto the exchange this year, including the V&A Waterfront (jointly bought by Growthpoint Properties and the Public Investment Corp for R10bn) as well as the Clearwater Mall in Roodepoort, Woodlands Boulevard in Pretoria and CapeGate Regional Centre through Hyprop Investment's Attfund acquisition.

Then there's also the listing of Old Mutual's R12bn property portfolio in the second half of 2011. This will allow investors to share in the spoils of the mega-mall Gateway Theatre of Shopping in Umhlanga (SA's biggest at 158219m²) and Menlyn Park Shopping Centre in Pretoria.

Source: Financial Mail