Nedbank Corporate Property Finance has concluded a R1.36-billion finance agreement with Billion Property Developments to construct the 73 588 m² Forest Hill Shopping Centre, in Monavoni, Centurion.
The brainchild of the project, Billion Group owner Sisa Ngebulana, says the centre will be situated on the N14 highway on the western periphery of Tshwane.
It will comprise a large regional shopping mall, with 175 retail outlets, an eight-cinema complex and an ice rink. Future phases include a 20 000 m2 value centre, offices, motor showrooms, residential homes and two hotels, all of which will form part of a massive new multifunctional precinct known as Forest Hill City.
Nedbank decided to provide the funding, based on its confidence in the developer and the long-term future of the retail property sector in South Africa, says Nedbank Corporate Property Finance regional executive Ken Reynolds.
“Ngebulana boasts an enviable property development track record, which includes the successful Hemingway Shopping Centre, in East London, and vast property investment experience, including the 2011 listing of the Rebosis Property Fund,” he explains.
Further, Nedbank structured the finance deal by way of a senior debt facility and a mezzanine loan provided by its investment arm. Forest Hill’s tenant mix and future development plans demonstrate an understanding by the developers of the growing trend among many South Africans where mall visits transcend mere shopping outings and have become family entertainment outings.
By capitalising on this trend through its accessibility, appealing tenant mix and contemporary design, the centre will almost certainly ensure its sustainable success and its future continued growth and profitability, says Reynolds.
Nedbank has also approved a R238-million finance facility for developer Enigma Property to build a new 14 600 m2 shopping mall, Tembisa MegaMart, in Tembisa, east of Johannesburg. The mall is set for completion in November.