This follows a landmark asset-swap transaction with Old Mutual, announced in January (2015) involving the Menlyn Park Shopping Centre and Cavendish Square in Cape Town. It also follows the deal getting approval from the Competition Commission earlier this year.
The two shopping centres have been equally owned by Pareto and Old Mutual for over five years. Together, these assets represent around R10 billion of prime retail property investment.
Marius Muller, CEO of Pareto, commented: "Pareto takes full ownership of Menlyn Park at an opportune time with the centre currently undergoing a major 50,000m², R2 billion expansion and refurbishment. 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 added: "We are delighted to take transfer of the remaining stake of this flagship retail property. It bolsters Pareto's position as the owner of trophy super-regional shopping centre properties across South Africa. With the major investment into Menlyn Park, it also is in line with Pareto's strategy of adding value to our assets."
Menlyn Park's mega makeover and expansion is progressing well. When complete, it will feature a retail and leisure offering of more than 500 stores, restaurants, entertainment and service offerings in SA's capital city.
Muller said: "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."
He added: "Pareto is looking forward to completing the expansion and refurbishment next year. 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.
