The Menlyn Park shopping centre. File picture: Supplied The Menlyn Park shopping centre. File picture: Supplied
Johannesburg - The Menlyn Park shopping centre in Pretoria is now wholly-owned by Pareto, whose only shareholder is the Government Employees Pension Fund and which is a major investor in shopping centres across South Africa.
This follows Pareto, which owned half of the 125 248m2 super regional mall, last week taking transfer of the remaining 50 percent stake from Old Mutual Life Assurance.
This was in line with a landmark asset swap transaction with Old Mutual that was announced in January involving Menlyn Park and Cavendish Square in Cape Town.
In terms of the deal, Old Mutual gained outright ownership of Cavendish Square, which was previously half owned by Pareto.
Pareto chief executive Marius Muller said on Thursday it was taking full ownership of Menlyn Park at an opportune time because the centre was currently undergoing a major expansion and refurbishment at a cost of R2 billion.
“The mega project, which is set to be complete in November 2016, will see Menlyn Park become not just the largest mall in South Africa, but one of the largest in Africa and in the southern hemisphere,” he said.
Trophy centre
Muller said taking transfer of the remaining stake of this flagship retail property bolstered Pareto’s position as the owner of trophy super-regional shopping centre properties across South Africa.
He said the major investment into Menlyn Park was in line with Pareto’s strategy of adding value to its assets.
“The investment in Menlyn Park is retailer-demand driven and will entrench its dominance as the leading shopping destination in Pretoria. The upgrade and expansion is well timed to keep Menlyn Park contemporary and add to its mix of world-class retail.
“Menlyn Park will take its place as the flagship directly-held super regional shopping centre in Pareto’s portfolio.
“With Pareto now being the outright owner of Menlyn Park, the management of the centre will now fall under Pareto’s newly formed property management company, Mowana Properties,” he said.
Pareto is also the full owner of Cresta shopping centre, Southgate Mall and Value Market and Westgate shopping centre in Gauteng, the Pavilion in Durban and Mimosa Mall in Bloemfontein while it jointly owns the Tiger Valley shopping centre in Cape Town.
BUSINESS REPORT