Octodec Investments, a JSE-listed Real Estate Investment Trust (REIT), has completed the R397.5 million ($24.1 million) sale of Killarney Mall in Johannesburg to AJPG Property 1, transferring ownership on Nov. 2, 2026, as the JSE-listed property group steps up efforts to dispose of non-core assets and strengthen its balance sheet.

The transaction follows approval by the Competition Commission and fulfilment of all other conditions attached to the agreement, which Octodec first announced on Feb. 24. The disposal involved the sale of all shares and shareholder claims in Killarney Mall Properties, a wholly owned subsidiary of Octodec.

Octodec frees up capital

Riaan Erasmus, deputy CEO and financial director of Octodec Investments, said the sale advances the group’s capital recycling programme and allows it to concentrate resources on properties and sectors with stronger potential to generate sustainable returns.

The proceeds will be used partly to reduce borrowings and finance the company’s strategic priorities. The disposal forms part of a broader portfolio review aimed at improving capital efficiency and creating a more focused property business as Octodec reassesses its asset mix.

A landmark Johannesburg mall

Octodec acquired Killarney Mall in 2001. The shopping centre opened in 1961 on the former site of the Killarney Film Studios, which dates to 1916, and is regarded as one of Johannesburg’s earliest mall-style retail developments.

Located in Johannesburg’s northern suburbs, the mall serves the surrounding residential and commercial communities. Its transfer to AJPG Property 1 marks a change in ownership for a retail property that has remained part of Octodec’s portfolio for 25 years.

Octodec reshapes property portfolio

Established in 1956, Octodec has been listed on the Johannesburg Stock Exchange since 1990 and on A2X Markets since 2023. The company obtained real estate investment trust status in 2013 and is among the larger property owners in Johannesburg and Tshwane.

Its diversified portfolio comprised 234 residential, retail, office and industrial properties, including interests in a joint venture, with gross lettable area of approximately 1.52 million square meters and a valuation of R11.2 billion ($681.6 million) as of Aug. 31, 2024.

AJPG Property 1 is part of South Africa’s AJP Group, which has interests in commercial property investment, retail developments and property management. Its acquisition of Killarney Mall adds to the group’s presence in the country’s retail property market, particularly in Gauteng.