Historic sale of Golden Acre Shopping Centre: What’s next for Cape Town's iconic landmark?

History has been made as the iconic Golden Acre Shopping Centre has been sold for R781 000 000.

The sale was approved by the Competition Commission in February following its transfer.

But behind the sale, transfer and negotiations, it has become a place of identity for Cape Town residents, where the Kaapse Klopse would visit just outside on the Grand Parade, a walk-through for bus commuters to the Golden Arrow bus terminus to Christmas shopping and the hussel and bussel of the CBD.

The new owners (Putirex (Pty) is set to redevelop the mall which was built by Sanlam in the 1970s.

According to property mogul, Ash Müller, who took to her Twitter account yesterday, the mall, which has become an historical and iconic landmark, will be upgraded with plans for its 110m-high tower. Muller wrote: “The Golden Acre Shopping Centre in Cape Town has finally sold for a price tag of R781 000 000.“This was a really complicated deal, and it has taken months for the property to finally transfer.

In February this year, the Competition Commission approved the deal.

“The price includes the building next door, located at 11 Adderley Street. The shopping centre itself has a total of 55 730m2 of retail and office space.

“The new owner (Putirex (Pty) Ltd) is quite far down the line with their plans to redevelop the 110m-high Golden Acre Tower and upgrade the retail area. 

“The concrete tower was initially built by Sanlam in 1979.

“Golden Acre is home to around 100 retailers, some of which include Ackermans, Markham, Foschini, Sportscene, Totalsports, Shoprite, McDonald’s, Wimpy, KFC, Steers, and Hungry Lion.”

Together, these properties cover more than 55,000 square metres of retail and office space, making this one of the largest retail property transactions in Cape Town’s CBD in recent years.

According to those in the know, for starters, the 110-metre-high Golden Acre Tower is likely to be turned into residential units, feeding the strong demand for inner-city accommodation.

Sources say the new owners of the Golden Acre may also completely revamp adjacent retail space - or hand the job over to another company to do while they create a modern residential hub. 

Three major redevelopments in that precinct - two already completed - are all interconnected and will function as one single integrated urban hub or precinct, and a big glow up for the area.

This includes:

1. The already-redeveloped Cape Town Station precinct which has opened a direct corridor between Strand street and the Cape Town railway station,

2. The 13,000m2 retail redevelopment of the adjacent Mutual Centre on the corner of Strand and Adderley streets, which includes a major food retailer opening up into 2000m2 retail unit, plus fashion stores, a roof garden, food court and informal trader pods, amongst others, and

3. The Golden Acre revamp about to happen.

Experts believe these multi-billion rand refurbishments and upgrades could:

• Improve safety and pedestrian connectivity within the central business district,

• Draw new tenants and investment into the area, and

• Preserve key historical elements while promoting a contemporary, transit-oriented city centre

While the exact details of the redevelopment have yet to be disclosed, it is expected to breathe new life into the centre, attracting more visitors and businesses, and reinforcing its role as a central hub in Cape Town’s CBD. 

The new owners have previously spoken about ambitious plans to redevelop the precinct, including modernising the Tower and upgrading the surrounding retail spaces.

According to the Competition Commission, Putirex will spend a confidential amount over three years for Golden Acre, with annual adjustments based on Compliance reports will be submitted annually.

Ron McGregor, one of South Africa’s most experienced tour guides and writers also shared via his Facebook account the history behind the Golden Acre’s name, citing that “Gold” had been struck with its price tag.

“The name itself has an interesting origin. Cape Town's first railway station occupied the site. The current station, directly across the road, replaced it, leaving the old station up for grabs,” he wrote.

“It was bought by the mighty Sanlam insurance company. 

“So, Golden Acre it became, and, for a while, it lived up to its name.

The Cape Historical Society shared that excavations began in 1975 for the concrete giant and that during the construction process it revealed remnants of the northern portion of a storage dam built in 1663 where the coast line once was. 

Councillor Ian McMahon said he was happy about the sale and its prospects: “As councillor I’m excited that there is new ownership, as Golden Acre has needed some TLC for years...Being situated between two public transport interchanges (Bus and Train) and having over 700 parking bays itself onsite positions it as another needed component to the CBD in the ‘affordable side’ of the residential sector.”

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