Flanagan & Gerard Property Group has taken complete control of Morningside Shopping Centre in the upmarket Morningside neighbourhood of Sandton, the group confirmed this week.
The retail property investor and developer jointly owned the R640 million centre together with Grapnel Property Group since 2008, and it was later expanded into a modern community centre in 2009.
Flanagan & Gerard said it took transfer of the centre recently, making Morningside Shopping Centre its first wholly owned property. All its other retail properties, such as Ballito Junction and Mthatha Mall, are jointly owned with other property groups.
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The fully-let centre spans 11 600m² and houses 64 stores, including anchored retail tenants Woolworths Food, Pick n Pay and Clicks. Other big brands at the centre include tashas and Paul, as well as fine dining restaurant Signature.
“Flanagan & Gerard first identified the asset’s potential in 2008 and, having located its offices at the centre for the past 16 years, has maintained a close, hands-on relationship with the property,” the group noted in a statement.
“The group acquired what was then a smaller, outdated centre and undertook a complete redevelopment, with the centre reopening in 2009 featuring a contemporary design and a carefully curated mix of retail and dining offerings. Since then, the group has continued to add value to the asset,” it added.
With more than 15 years of owner-level insight into the centre’s performance, Flanagan & Gerard managing director Paul Gerard describes it as “a prime asset in an excellent catchment area with great access and visibility”.
He adds that increased residential densification in the area is expanding the centre’s high-end shopper base.
The group hinted at further expansion and investment into Morningside Shopping Centre.
“Flanagan & Gerard is in the process of optimising the centre’s zoning in line with updated town planning conditions. This is the first step in a broader project to enhance the tenant mix, expand the footprints of key tenants and improve operational elements such as delivery access,” it said.
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While Flanagan & Gerard said it remains committed to its preferred co-ownership investment model, partnering with groups including Vukile Property Fund, Sun International, Resilient REIT, Moolman Group and Growthpoint Properties, it noted that Morningside Shopping Centre presented a unique opportunity for the group to exercise its rights when Grapnel Property Group elected to sell its stake.
“Sole ownership brings the benefit of swifter, more focused decision-making, while partnerships offer the synergies of complementary skills and resources,” said Gerard. “Both have a place in our portfolio, depending on the asset and circumstances.”
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