Burstone Group announces joint acquisition of The Neighbourhood Square shopping centre in Johannesburg
Burstone Group today announced its joint acquisition of The Neighbourhood Square, a convenience shopping centre located in Linksfield, Johannesburg, from Investec Property for R380 million.
Burstone’s partner in the transaction is property development and investment company Flanagan & Gerard (F&G). Burstone and F&G will each acquire a 50% stake in the centre.
The purchase takes place after Investec granted Burstone a right of first offer over certain properties following the management internalisation process that saw the transition of Investec Property Fund into the Burstone Group in 2023.
The acquisition reflects Burstone’s strategic commitment to transforming value for all stakeholders through partnerships and unlocking potential by investing in best-inclass assets.
Andrew Wooler, CEO of Burstone Group said: “The Neighbourhood Square is a strategically important asset, and the acquisition reflects our priorities of focusing on property fundamentals and collaborating with best-in-class partners, in this case, Flanagan & Gerard. The deal is a great example of our strategy to deliver income and capital growth over the long-term.”
The Neighbourhood Square is a newly built, high-quality, open-air, dominant nodal convenience retail centre. It has strong operating fundamentals and exceptional trading statistics — Zero vacancies, average trade density of c.R7,000/m², WALE of 4.3 years, and c.86% national retail tenants anchored by Checkers and Woolworths.
The asset enhances Burstone’s portfolio of quality assets where management can leverage its expertise to unlock value over time. The Neighbourhood Square is expected to deliver long-term, sustainable rental growth above market trends. With a predictable long-term income stream, the acquisition supports Burstone’s strategic objective of delivering sustainable returns across its portfolio.
The transaction adds to the quality of Burstone’s retail earnings, reinforcing its singleminded focus on acquiring assets with compelling property fundamentals in strategically selected sectors where it has an in-depth understanding of market dynamics.
About Burstone Group Limited (Burstone)
Burstone (previously Investec Property Fund) is a fully integrated international real estate business with c.R37 billion gross asset value (GAV) under management and c.R5.4 billion third-party capital under management.
The Group invests in best-in-class assets, focusing on fund management, asset management and development management. Burstone listed on the Johannesburg Stock Exchange (South Africa) in 2011 and currently operates in South Africa, select European markets and Australia. About 55% of the Group’s asset base is comprised of foreign investments. The Group has a strong management track record of more than 30 years, operating in both local and international markets.
Burstone strives to deliver purposeful and authentic client experiences with agility, speed, and passion. The Group has the unique ability to identify potential that lies within something and then transform it into something of real value. Across all regions in which the Group operates, the manager has a presence on-the-ground with incountry expertise and adopts a hands-on approach to managing its properties.
For more information, visit: www.burstone.com
About Flanagan and Gerard Frontiers Proprietary Limited
Flanagan and Gerard (F&G) is a property development and investment company focusing on dominant regional malls and niche community centres. Since its inception, F&G has successfully developed many quality shopping centres, including the award-winning Morningside Shopping Centre, which it continues to own.
For more information visit: www.Blackstone.com
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