Property company Flanagan & Gerard Property Group's shopping centres saw growth in revenue in June of 12% year-on-year, despite South African retail sales having declined by 2% during the month, and the company's portfolio delivered 20% growth in turnover between July 2021 and July this year.

“Regional malls are bouncing back. Footfalls are up year-on-year and moving higher than pre-Covid numbers for the first time, while spend-per-head has increased significantly,” says Flanagan & Gerard MD Paul Gerard.

“The trends in the Flanagan & Gerard retail property portfolio paint an exciting and encouraging picture. They also point to a welcome comeback from the trading categories and retailers that were hardest hit by pandemic-related restrictions,” he adds.

“Our restaurants are trading well and ahead of pre-Covid-19 levels. Cinemas have rebounded and are displaying a similar pattern. Liquor stores are showing massive growth in trading. In our portfolio, we are seeing great results from Edgars’ new management and from Game’s new strategy. It is particularly exciting to see national retailers bringing new brands to market,” he says.

The company's portfolio has a low vacancy rate of 0.45%. The portfolio’s trading strength is also reflected in the financial health of the Flanagan & Gerard shopping centre tenants, leading to a very low level of arrears, he notes.

“The continued reality of load-shedding has given malls with backup power a competitive edge in attracting shoppers and reinforced the abundant opportunities for solar-powered shopping malls in South Africa. Flanagan & Gerard aims to have all its retail properties function fully during power disruptions, for which it employs a combination of solar energy and backup generation,” Gerard says.

“Empowering improved trading outcomes, promoting carbon reduction by decreasing fossil-fuelled energy consumption and lightening the load on the national power grid, Flanagan & Gerard will continue to increase the solar power generation capacity at its shopping centres,” he says.

Further, Flanagan and Gerard’s new shopping centre, the 24 000 m² Boardwalk Mall, is due to open on September 22 and become the new home of world-class convenience and entertainment in Summerstrand, Gqeberha, Nelson Mandela Bay Metro, Eastern Cape. Boardwalk Mall is a major development by Flanagan & Gerard Group and Emfuleni Resorts.

Flanagan & Gerard develops and invests in dominant regional shopping centres that retain dominance within their trade areas and high-end niche community centres. It co-owns Ballito Junction Regional Mall in KwaZulu-Natal as well as Morningside Shopping Centre, Springs Mall and Vaal Mall in Gauteng, together with Highveld Mall and Middelburg Mall in Mpumalanga, and Thavhani Mall, Musina Mall, Great North Plaza and Mall of the North in Limpopo.

Its record also includes numerous retail properties developed for other leading investors, the company says.