At a Glance
- Tradecco buys Balfour Park Mall at a 33.5% discount to book value.
- Acquisition supports HDP sourcing, boosting South Africa’s inclusive economic transformation objectives.
- Firm targets repositioning the mall for higher occupancy and rental income growth.
Johannesburg-based real estate investor Tradecco Properties has expanded its South African portfolio with the acquisition of Balfour Park Mall, a 37,000-square-metre retail centre in Highlands North.
The Competition Commission approved the transaction following Burstone Group’s strategic decision to dispose of the asset at a 33.5% discount to book value, valuing the deal at approximately R300 million ($18 million).
Burstone offloads underperforming asset
The sale is part of Burstone’s wider portfolio reset, which includes about R500 million in disposals aimed at strengthening its balance sheet and reallocating capital toward higher-yielding properties.
Balfour Park, one of 14 retail centres in Burstone’s portfolio, had been underperforming due to vacancies and weaker foot traffic, despite the group reporting 11.5 percent like-for-like net operating income growth across its remaining assets.
Tradecco targets value unlocking and community impact
Tradecco, jointly controlled by three shareholders, has committed to sourcing cleaning, security, and maintenance services from historically disadvantaged persons (HDPs), meeting regulatory conditions and supporting South Africa’s inclusive economic transformation objectives.
The firm plans to reposition the mall to improve occupancy and rental income, aiming to transform it into a sustainable contributor to Johannesburg’s suburban retail market.
A strategic acquisition amid retail market recalibration
The deal reflects broader trends in South Africa’s retail property sector, where tertiary malls are repriced following structural shifts in shopping behaviour and the rise of e-commerce.
The acquisitions like Balfour Park present opportunities for nimble investors to capitalize on discounted assets while providing social and economic benefits in line with BBBEE principles.
With Balfour Park now under its control, Tradecco strengthens its presence in Gauteng, signalling its intent to actively manage and grow assets in the country’s competitive suburban retail space.
