Renovations at Mthatha's BT Ngebs mall are forging ahead, say its new owners as they report healthy half-year figures for the company overall.
The prestigious mall, co-owned by JSE-listed real estate investment trust Vukile Property Fund and Flanagan & Gerard Property Group since April, is undergoing "major upgrades" that, all being well, should be completed in six months.
The trust is pleased with the performance and activity of its malls in rural areas and townships, saying trade in townships increased by 5.3%, while in rural areas it was up 3.5%.
Vukile Southern Africa MD Itumeleng Mothibeli attributed the increase to positive consumer sentiment and signs of economic recovery.
Although the vacancy rate at BT Ngebs is at 13%, Mothibeli is confident this will decrease materially in the short term.
He anticipates the R800m acquisition will be fully let in 2026.
The redevelopment, at a further R200m, will bring significant improvement in its dynamics, flows and synergy with the neighbouring Mayfair Hotel and Casino, says the firm's website.
"Escalators will connect the basement carpark directly to retail levels, improving safety, creating ease of access and shopping convenience.
"Tenant signage upgrades will vastly improve the customer experience, giving a sense of direction and comfort with the mall layout."
Major upgrades are happening at the main entrance, "bringing theatrical elements and a vibrant atmosphere" the website adds.
Restaurants, landscaping, and an "enhanced overall vibe will contribute to the revitalization, offering a more engaging and appealing experience".
There has been an increase in leasing activity, foot traffic and trading density at several of their malls for its 2025 half-year pre-close, Mothibeli says in the report.
"We are encouraged to see sustained customer loyalty, reflecting our continued focus on consumer needs and strategic initiatives, resulting in a 2% increase in footfall across our retail portfolio," he said.
Vukile's SA retail portfolio recorded low vacancies at 1.9%, the same as in March. Trading density grew by 3.3%, exceeding the 2.4% growth recorded for the 2024 financial year.
Mothibeli said the fashion category had the highest trading density growth of 3.2%, with the increase in sales of womenswear reflecting a recovery in consumer spending in line with recent national retail sales
figures.
Retail sales were up by 2% year on year in July, with general dealers and retailers in pharmaceuticals listed as the largest positive contributors to this growth, according to Stats SA.
"Womenswear achieved a 10% increase in trading density, while menswear grew by 5%. Pharmacies, bottle stores, health and beauty [outlets], sports facilities and gyms all experienced noteworthy trading density growth."
The grocery category, which takes up 21% of the gross lettable area in Vukile’s local portfolio, also recorded a notable increase in trading density during this period.
"The grocery category experienced a trading density growth of 2%, compared with 0.9% in the 2024 financial year," he said.
At the same time, the average spend per head increased by 4%, reaching an estimated R144 in August 2024, with spending in the rural portfolio increasing by 6.5%. In the townships, spending per head increased
by 4.2%.
The top three malls in its portfolio attracting more customers during this period were Hammarsdale Junction outside Durban, Gugulethu Square on the Cape Flats and Moruleng Mall in North West.
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