UShaka mall going under the hammer in August

AHOY INVESTORS: TENANTS ARE LEADING BRANDS ON LONG LEASES

Gross annual rental income for this property is over R7.5 million.

Property investors are gearing up for the sale of one of KwaZulu-Natal’s largest retail properties which is set to come under the hammer on August 23 at midday.

The property, which is being taken to the market due to the seller consolidating their assets, offers investors the opportunity to purchase a well-tenanted mall with leading brands on long-term leases.

Accordingly to Greg Nafte, co-director of Nexus Property Group, the uShaka mall has developed into a desirable investment among property owners as it’s a secure asset with guaranteed returns due to its strong tenant mix. “The gross annual rental income for this property is over R7.5 million which excludes recoveries for operating expenses.

“In terms of obtaining finance for a property of this stature, it becomes a lot easier to get funding from banks when you’re able show them that large retail chains are invested in the property too.

“The mall will also always be a valuable asset as it services the local community’s needs.”

Nafte says the mall has an erf size of 21 128 hectares with a gross lettable area of around 8 700m².

The mall is currently 95% occupied and includes a strong mix of stable tenants including CashBuild, Clicks, Telkom, Crazy Store and Cell C as well as anchor tenant, Pick n Pay, which has a lease until 2026, after which there will be three options to extend for fiveyear periods.”

When discussing how the method of sale was decided upon, Nafte says an auction was deemed the best method as it brings finality to sale and gives all prospective buyers a fair chance to submit their bids.

All due diligence information is available on request, he adds.