October 9 2026 14:00
picture supplied, Johannesburg, Gauteng
The Competition Commission has conditionally approved the R397.5m sale of Killarney Mall, widely regarded as South Africa’s first mall-type shopping centre, by JSE-listed Octodec Investments to AJPG Property 1, the property vehicle of the privately held AJP Group.
The Commission announced its decision on Thursday, 8 October 2026. It found that the deal is unlikely to substantially prevent or lessen competition in any market. To address public interest concerns, however, the parties must set up a dedicated empowerment fund. The new owner must also support businesses owned by historically disadvantaged individuals to set up and run retail outlets at the centre. The Commission has never turned down a property deal in South Africa’s history.
The approval clears one of the last major hurdles on a deal Octodec signed on 24 February this year. It also brings an end to a long sale process for a mall that has been on the market for several years.
The acquirer is AJPG Property which is led by John and Peter Baladakis. Its other directors include John Philippou and Andrew Costa. Costa formerly worked for the Georgiou family as Accelerate Property Fund as well as for former Reserve Bank governor Tito Mboweni.
Few retail properties in South Africa carry as much history as Killarney Mall. The land at 60 Riviera Road was once home to Killarney Film Studios, established in 1916. In the 1960s part of the studio site was redeveloped into a small, open-air shopping centre. It is widely described as the first mall-type shopping centre in South Africa, and possibly the continent. A few years later Hyde Park Corner and then Eastgate Shopping Centre opened in the 1970s.
The original Killarney Centre ran over three levels, with shops, pavement cafés and offices. A R12m renovation completed by 1972 took it to about 150 700 square feet of lettable space, with parking for around 1 000 cars. Since then it has been refurbished several times. Bit it has battled with high vacancies in recent years. The mall struggled to compete with nearby Rosebank Mall.
In 2001, Killarney Properties sold the mall to Octodec and Gold Eagle Properties. Octodec has owned it for the 25 years since.
The mall sits between some of Johannesburg’s most established suburbs, including Houghton and Westcliff. It has easy access off the M1, secure parking and 24-hour security. The deal covers the whole property, including retail space, A-grade offices and a fuel service station.
| Metric | Figure |
|---|---|
| Purchase price | R397.5m |
| Valuation (31 August 2025) | R407.6m |
| Retail GLA | 36 225m² |
| Office GLA | 11 245m² |
| Weighted average rental | R155.20/m² a month |
| Profit (FY to August 2025) | R16.6m |
| Net liabilities | R38.6m |
The tenant line-up is anchored by national names, including Pick n Pay, Woolworths, Dis-Chem, Clicks, Mr Price, Ackermans and PNA. It is a mix that serves both the surrounding suburbs’ affluent residents and the many people living in Killarney’s apartment blocks.
For Octodec, the sale is about capital recycling. The Reit, best known for its large office, retail and residential portfolio in the Johannesburg and Pretoria inner cities, has deemed Killarney Mall non-core. It plans to use the proceeds to reduce debt and fund future developments that fit its revised strategy. it has taken years to sell the mall.
The R397.5m price is about 2.5% below the mall’s last book value of R407.6m. That is a modest discount for an older centre that had been on the market for some time, and it shows the asset was not sold under duress..
The deal was always subject to the usual conditions: the buyer’s due diligence, bank guarantees, the release of Nedbank’s mortgage bonds and competition approval.
AJPG Property is the investment arm of the AJP Group, which already owns 15 retail properties, mostly in Gauteng. Its portfolio includes Kempton Gate Mall, Steeledale Mall, Glen Balad Mall and Elgin Mall.
The Killarney deal fits a broader trend. Listed property funds have been selling older, smaller or non-core malls to tidy their balance sheets and redeploy capital. Private, owner-managed buyers, often with deep local retail knowledge, have been the ones stepping in. Those buyers can take a longer view of an older centre. They can manage it more hands-on, without having to report quarterly to institutional shareholders.
For Killarney Mall, the next chapter will turn on reinvestment. A 1960s-era centre needs regular capital to stay relevant, especially with newer schemes such as Rosebank Mall and Melrose Arch nearby. AJPG has not yet announced its plans for the property, but the empowerment fund and support for black-owned retailers required by the Competition Commission will shape at least part of the tenant mix.
alistair@propertyflash.co.za
