The Competition Commission has unconditionally approved the sale of five shopping malls, carrying a total transaction value of R3.9bn.

Hangar 18 intends to acquire five retail property letting enterprises from Rebosis Property Fund Limited. Baywest Mall is of particular interest as it is a more recent build and is the largest shopping mall in the Eastern Cape at 87 000 square metres. 

BusinessTech reports that it was acquired for R1.25bn in the deal. The 74 000 square metre Hemingways Mall was acquired for a slightly higher price at R1.265bn.

The other malls included in the sale are Sunnypark Shopping Centre in Pretoria, Forest Hill City in Centurion and Bloed Street Mall also in Pretoria.

The group was established by the Billion Group in 2010 and became the first black-managed and substantially black-owned property fund to be listed on the JSE. Hangar 18 is a special-purpose vehicle that is not controlled by any firms, the commission noted.

‘The commission found that the proposed transaction is unlikely to result in substantial prevention or lessening of competition in any relevant markets. The commission further found that the proposed transaction does not raise substantial public interest concerns,’ it said.

Full BusinessTech report