Vukile Targets More Value From Township and Rural Shopping Centres
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Vukile Property Fund is rolling out value-add projects across its township and rural malls and has bought Botshabelo Mall for R433m, after lifting its South African retail portfolio valuations by R2bn.
Vukile Property Fund is maximising the commercial potential of its shopping centres in Maluti, Mthatha, Mdantsane and Komani through value-add projects, positioning the malls as commercial anchors in rural markets. The group also sees room to further lift rental income and reduce operating costs at Botshabelo Mall, which it recently bought from Liberty Two Degrees for R433 million.
In the year to March, Vukile's South African retail portfolio recorded a R2 billion increase in like-for-like valuations to almost R20 billion, reflecting the performance of its township and rural retail assets. The group's average value per retail property is about R590 million.
Speaking during a company tour of its township retail assets in the Free State and Eastern Cape, managing director Itumeleng Mothibeli said retailers were becoming more efficient at generating higher sales from less space, with some stores smaller than they were in 2022 but trading at higher levels. "We are using trading data to manage performance by backing stronger-performing retailers and categories, with leisure continuing to grow well," Mothibeli said. "We use this data to identify retailers that can drive growth more efficiently in smaller spaces and allocate space accordingly."
The group has seen growth in rental rates and trading density across much of its retail portfolio since the 2022 financial year, with trading-density growth outpacing rental increases overall, although performance varied by category. Groceries and fashion remain key performers, while bottle stores and cellphone retailers recorded strong growth in sales per square metre. Restaurants also delivered solid trading growth, while homeware recorded rental growth with more modest gains in trading density.
Mdantsane City, which Vukile bought from Rebosis Property Fund in 2019, attracts shoppers earning about R26,000 a month on average. Since 2021, grocery trading density there has risen by nearly a fifth, while overall centre trading density has grown by almost a quarter. After its 2019 redevelopment, Maluti Crescent has expanded to 35,756 square metres of gross lettable area, drawing more than 900,000 visits a month as a regional shopping hub serving nearly 400,000 people across Maluti-a-Phofung, and generating annual turnover of about R922 million.
The group has also completed a R76.1 million extension and refurbishment of Nonesi Mall in Komani, adding 3,100 square metres of retail space, and spent R71 million in Gauteng converting more than 5,000 square metres of former cinema space into retail units. The Clur index for the second quarter of 2026 shows retail trading density growth falling behind inflation as consumers become more selective about spending, reinforcing the importance of value-driven retail offerings in township and rural markets.