Reaffirming the huge demand for prime-located retail space in the Western Cape, Ikon Property Group recently brokered a transaction for the sale of Rondebosch Village Shopping Centre, which was acquired by a private property fund for R20.2 million.
Built approximately 12 years ago, and with Woolworths a strong anchor tenant, this fully-let, well-positioned convenience centre is located in a prime catchment area which includes the neighbouring Rondebosch Village residential complex.The centre, which includes about 50 parking bays, is situated on busy Klipfontein Road, a main arterial route in Cape Town’s hugely popular Southern Suburbs. Set on a stand of 4 116sqm, Rondebosch Village Shopping Centre comprises a gross lettable area of 1 040sqm.
Built approximately 12 years ago, and with Woolworths a strong anchor tenant, this fully-let, well-positioned convenience centre is located in a prime catchment area which includes the neighbouring Rondebosch Village residential complex.
Peter Holland and Luke Anley, Ikon Property Group brokers who concluded the deal, say retail property is the buyer’s preferred asset class, and this well-performing centre was ideal for investment as the anchor tenant, Woolworths, is reflecting strong turnover growth year-on-year due to being in a high LSM catchment node. This acquisition expands the buyer’s existing investment portfolio, says Holland.
According to Anley, convenience centres such as this hold their own in a competitive retail environment, as smaller stores mean lower rentals, high trading density and easier and quick access for customers, in other words, true convenience shopping. This centre has easy ingress and egress off Klipfontein Road itself, making it highly accessible, he says.
Elton Holland, director of Ikon Property Group, says in the Cape Peninsula, there is a limited supply of land for retail development, resulting in less chance of cannibalisation from new developments, and resulting in a strong long-term retail investment.
Further to this, strong trading growth is compounded by the so-called semigration effect currently being experienced in the Western Cape, with an influx of people relocating here from other regions, he says.
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