March 7 2025 16:00
Since its acquisition in May 2024 by Flanagan & Gerard Property Group and retail real estate investment trust (Reit) Vukile Property Fund (JSE: VKE), Mall of Mthatha, formerly BT Ngebs City, has undergone upgrades aimed at “elevating the shopping experience and reinforcing its position as the region’s leading retail destination” according to its owners.
It was acquired for R800m and then experienced a R210m redevelopment strategy “designed to improve flow, accessibility, and the overall shopper experience”. The transformation was “underpinned by a commitment to delivering long-term value to retailers, shoppers and the broader Mthatha community”.
It’s owners say that a key aspect of Mall of Mthatha’s transformation has been the expansion and diversification of its retail mix. Under its new ownership, the mall’s vacancy rate has decreased dramatically from 18% to just 1.85%, reflecting the strong demand for quality retail space in the region.
New tenants include Dis-Chem which is opening March 2025, Spur and News Café which are both opening June 2025, and Shoprite and Shoprite Liquor which are scheduled to open in August 2025.
Recently opened retail stores include Burger King, Pick n Pay Clothing, Queenspark, Sergeant Pepper Clothing Company and JAM Clothing, along with Homechoice, Pep Home, Mr Price Cellular and Van Schaik Bookstore.Studio 88, Sid estep and Skipper Bar are being expanded.
Positive results of Mthatha Mall’s improved tenant mix are evident in its trading performance, its owners say. Since August 2024, Mall of Mthatha has enjoyed consistent growth, culminating in a 9.7% turnover increase from January to December 2024 compared with the previous year. Foot traffic has shown double digit growth in recent months.
Categories such as homeware and speciality foods have demonstrated storng sales performance, each exceeding 50% year-on-year growth.
The addition of a new mezzanine level and lobby are set for completion by the end of May. Its new escalator installations will be completed outside Woolworths this month and outside Checkers by the end of May.
As part of its commitment to enhancing shopper convenience, Mall of Mthatha has completed significant upgrades to the existing bathroom facilities, as well as adding new bathrooms to the restaurant block. Shoppers will have access to the modern mezzanine bathrooms from 1 April, with the newly refurbished bathrooms near Checkers, offering an elevated experience from 1 May, its owners said.
Infrastructure investments as part of the project are ongoing, with enhancements in lighting, CCTV, HVAC systems, access control, and Occupational Health and Safety compliance. A new 1.8MW solar installation is being implemented to support sustainability initiatives.
Mall of Mthatha focuses on education and well-being in the region. In February 2025, the mall partnered with JAM Clothing for a #Back2School campaign, donating 265 pairs of school shoes to learners at Tinipi Junior Primary and Sidwadwa Primary School.
The collaboration between Flanagan & Gerard and Vukile Property Fund would bring “significant strategic advantages, leveraging a shared vision and expertise in retail development” according to the two groups.
“The partnership was cemented long before this project, first as co-owners of Thavhani Mall in Limpopo and then Springs Mall in Gauteng, reinforcing a commitment to long-term value creation across their joint portfolio,” they said.
“Our investment in Mall of Mthatha reflects our shared confidence in the economic potential of the region. Through strategic upgrades and a strengthened retail mix, the potential of this exceptional shopping destination is being unlocked to better serve the broader community, its shoppers and retailers,” said Paul Gerard, Managing Director of Flanagan & Gerard.
Itumeleng Mothibeli, managing director for South Africa at Vukile Property Fund said: “We see Mall of Mthatha as a key asset within our portfolio. By implementing targeted enhancements for the mall’s evolution, the focus remains on delivering a best-in-class shopping environment that supports economic growth, community development and, crucially, its customers.”
The mall’s upgrade project is set to be completed by September 2025.
alistair@propertyflash.co.za
