Retail property-focused real estate investment trust Enyuka has received the transfer of six established shopping centres from commercial property investment company ONE Eighty Holdings.

The transaction forms part of a strategic alignment of assets within Enyuka, which is designed to strengthen the fund’s position and elevate it to become a leading player in the country’s convenience retail sector.

Enyuka has more than doubled in value following the transaction to R3.5-billion from R1.8-billion.

“All six properties moved across to Enyuka are stable, income-generating centres located in high-footfall areas, with loyal customer bases,” the company says.

Enyuka is co-owned by commercial property investment firms ONE Property Holdings, Mpande Property Fund and Trinitas Private Equity.

In preparation for the transfer, and as part of ongoing asset management, ONE Property Holdings has already invested in upgrades and modernisation, thereby further improving the shopper experience and ensuring long-term sustainability.

“This reflects our commitment to the underserved value market in towns and peri-urban areas across South Africa, where our centres provide both convenience and a strong tenant offering to local communities,” says ONE Property Holdings Group CEO Chris van Reenen.

Further, the centres within the fund have been curated with this in mind, offering a blend of national retailers, local businesses and essential service providers.

“Our centres are community assets. We are investing in them for the long term and not just in terms of brick and mortar, but in their ability to serve the communities they exist in,” adds Van Reenen.

Underpinning Enyuka’s growth is a robust asset management strategy that aims to continue building a portfolio of institutional-grade, community and convenience centres anchored by grocery retailers.

Further, Enyuka is expected to continue its growth trajectory, leveraging its increased scale and focused mandate to attract further interest from the investor community.

Additionally, Enyuka is in the market to buy additional select shopping centres which fit into its acquisition strategy, he says.

Meanwhile, to enable the transaction, R2.1-billion in debt financing was arranged from a syndicate of financial institutions comprising Nedbank Corporate and Investment Banking (CIB), RMB, Futuregrowth, Absa and Taquanta Asset Managers, with Nedbank CIB acting as the syndication lead.

“The management team would like to express our gratitude to our shareholders in Enyuka and our financiers for their support in concluding the deal,” says ONE Property Holdings group finance head Joshua Medalie.

The transaction has also enabled a reduction in the fund’s cost of capital, further strengthening its financial position, he notes.

“This transaction demonstrates our confidence in the growth potential of community and convenience retail in underserved areas. We are proud to support Enyuka in delivering high-quality, income-generating assets that meet both investor and community needs.

“The syndication garnered significant market appetite, thereby underscoring the market’s confidence in Enyuka’s strategy,” says Nedbank CIB syndications and distribution principal Sandi Mda.

“This deal reinforces Enyuka’s strategy of building a focused and resilient retail portfolio. The fund now has both the scale and the strategic clarity to align with that. These are mature assets with sustainable income streams that have already seen significant reinvestment, and we believe there is further upside ahead,” says Mpande Property Fund CEO Sbu Luthuli.

“As a group, we are continually refining our portfolio through both acquisition and disposal. This transaction is a clear example of how we intend to reshape our holdings, namely by consolidating similar assets under a single, clearly defined fund to improve transparency, efficiency and access to capital,” says ONE Property Holdings chairperson Selwyn Smith.

This disciplined capital recycling strategy includes selling off noncore assets and reinvesting the proceeds into stronger-performing centres aligned with the fund’s profile. The objective is to deliver improved yields and long-term income growth for investors, he adds.

Meanwhile, as part of its ongoing commitment to environmental, social and governance priorities, the asset management team has installed solar PV systems at about two-thirds of the shopping centres in Enyuka, with further installations to follow.

These efforts are complemented by water sustainability initiatives, including the development of boreholes and on-site treatment facilities, which provide clean drinking water to the surrounding communities through collection points at selected centres, the company says.