A landmark R10-billion asset swap, involving major shopping centres Menlyn Park, in Pretoria, and Cavendish Square, in Cape Town, between international banking group Old Mutual and property investor Pareto has been concluded.
Pareto would acquire the 50% share in the Menlyn Park Shopping Centre that it did not already own from Old Mutual, while Old Mutual would acquire the 50% share in Cavendish that it did not own from Pareto.
The two shopping centres have been equally owned by Pareto and Old Mutual for over five years.
Pareto had now taken outright ownership of the 125 248 m² super-regional mall, the expansion of which was set to be completed in November 2016, after the approval from the Competition Commission earlier this year.
The two-phase project, which started in 2014, would add almost 50 000 m² and 200 more stores to the centre.
“Pareto takes full ownership of Menlyn Park at an opportune time with the centre currently undergoing a major 50 000 m², R2-billion expansion and refurbishment,” said Pareto CEO Marius Muller.
The management of the centre would now fall under Pareto’s property management company Mowana Properties.
Pareto also owned the Cresta Shopping Centre, Southgate Mall and Value Market and Westgate Regional Shopping Centre, in Gauteng, as well as the The Pavilion, in Durban, and Mimosa Mall, in Bloemfontein.
The group also co-owned the Tyger Valley Shopping Centre, in Cape Town, while holding a 25% stake in Sandton City and its surrounding assets including three high-rise office blocks, the Sandton Convention Centre and three hotels, namely Sandton Sun, The InterContinental Johannesburg Sandton Towers and Sandton Garden Court.