Transfer seals the deal for new ownership of The Neighbourhood Square Shopping Centre

The Neighbourhood Square premier convenience shopping centre in Linksfield, Johannesburg, has transferred into the hands of its new owners Flanagan & Gerard Property Group and Burstone Group (JSE: BTN).

Burstone Group partnered with retail real estate specialist Flanagan & Gerard to acquire the strategic retail asset, with each owner holding a 50% stake in the centre. The process for the R380 million acquisition began when Burstone Group exercised its first right of offer over the property owned by Investec, following the management internalisation process that saw the transition of Investec Property Fund into the Burstone Group in 2023.

The deal marks the second transaction between the two property players in recent years. In 2020, Flanagan & Gerard acquired a 50% stake in Musina Mall, Limpopo, from the then-Investec Property Fund, together with Moolman Group, which increased their share to 50%.

Flanagan & Gerard is known for its distinctive hands-on approach to retail property and will take on a strategic asset management role for The Neighbourhood Square, complementing the highly accomplished asset and property management structures.

Graham Hutchinson, Managing Director of Burstone Group South Africa 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, such as Flanagan & Gerard. The deal is a great example of our strategy to deliver income and capital growth over the long-term.”

Paul Gerard, MD of Flanagan & Gerard Property Group, said: “We are delighted that the transfer of The Neighbourhood Square is now concluded and to be co-owners of this asset with respected real estate investor, Burstone Group. The extremely popular centre has quickly established an enviable trading track-record and has a waiting list of new tenants. It is a great match for our portfolio, with the opportunity to unlock value over time.”

The Neighbourhood Square is a newly developed, high-quality, open-air convenience retail centre, which is dominant in its node. In a very short time, it has established excellent operating fundamentals and exceptional trading metrics, including zero vacancies. It has 86% national retail tenants and the formidable strength of dual anchor tenants, Checkers and Woolworths.

The asset enhances the respective portfolios of its new owners and there are plans to build on the centre's success with general improvements and retail mix refinements, making the customer experience at The Neighbourhood Square even better. New retailers recently added to the centre’s appealing line-up include Thule, JJ Cale, and Wellness Warehouse.

The new co-owners share a deep commitment to renewable energy initiatives and will be adding additional rooftop solar panels above Woolworths.

About Burstone Group Limited

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.R4.7 billion third-party capital under management. The Group invests in best-in-class assets, focusing on fund management, investment 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 & Gerard Property Group (Flanagan & Gerard)

Flanagan and Gerard is a leading property development and investment company that specialises in dominant regional shopping centres and high-end niche community centres. Since its founding in 2001 by industry veterans Pat Flanagan and Peter Gerard, Flanagan & Gerard has been at the forefront of retail property in South Africa.

Flanagan & Gerard’s holistic approach to development, from initial concept through to completion, ensures that every project not only meets but exceeds the expectations of tenants, shoppers, and investors alike. Beyond development, it leverages its extensive expertise to deliver premier shopping destinations that consistently retain their dominance within their respective trade areas.

The company has an impressive portfolio of successful projects, including quality shopping centres developed for leading investors and for its own prestigious investment portfolio. Driven by a passion for creating vibrant and sustainable retail environments, Flanagan & Gerard continues to set new standards in the industry.

For more information visit: https://fgprop.com/