Real estate investment trust (Reit) Texton Property Fund has secured a long-term lease renewal with clothing retailer Truworths for its prominent high street shop in central Durban, which is one of the group’s biggest stores in South Africa.
Truworths has renewed its lease over 5 000 m2 of retail space in a six-storey mixed-use building acquired by Texton in 2015.
The 11 200 m2 property comprises four floors of retail space anchored by Truworths, OK Furniture, Cell C and Bargain Basket, with its top two floors used for offices and storage.
Texton CEO Marius Muller expressed his appreciation of the extended relationship with Truworths for its Durban city store.
“The property offers Truworths key advantages of being well situated with high exposure to consumers, which supports its good trading in a well-maintained property with fair lease terms,” he said.
He added that the long-term lease renewal was consistent with Texton’s sharp focus on retaining tenants and attracting new clients. In South Africa’s competitive property market, Texton is employing aggressive leasing strategies that incentivise both tenants and brokers.
In the last quarter of 2018, Texton leased more than 31 000 m2 of space in 25 deals, of which most were signed for terms of between one and three years.
Meanwhile, Texton has also experienced good uptake of space at its newly refurbished Bryanston Gate property, including a high level of tenant retention.
Additionally, the Reit renewed a lease with the Department of Public Works for about 25 400 m2 at the Foretrust buildings and 14 Loop street, in Cape Town.