Property investment firm Flanagan & Gerard Property Group has taken full ownership of the Morningside Shopping Centre in the upmarket Sandton suburb of Morningside from property investment firm Grapnel Property Group for an undisclosed amount.

The transaction increases Flanagan & Gerard's stake in the retail asset that it has co-owned since 2008, and is its first wholly owned property. Flanagan & Gerard has had its offices at the centre for the past 16 years and has maintained a close, hands-on relationship with the property.

Morningside Shopping Centre is a R640-million community retail destination serving higher-income residents across Morningside and the greater Sandton node, including Bryanston and surrounding suburbs. The centre benefits from stable footfall and resilient consumer spending patterns that support consistent rental income.

The fully let, high-performing centre spans 11 600 m² and houses 64 stores. Its carefully curated tenant mix combines convenience retail with bespoke fashion, which supports resilient income streams and lower vacancy risk.

It is anchored by Woolworths Food, Pick n Pay and Clicks, and the centre also enjoys strong tenant retention that is underpinned by its prime location, visibility and quality.

When Flanagan & Gerard took up its initial stake in the retail centre, it was smaller and outdated. After a complete redevelopment, the centre reopened in 2009 with a contemporary design and a curated mix of retail and dining offerings.

The firm has continued to add value to the asset, it says.

The property also offers further potential, and Flanagan & Gerard is in the process of optimising the centre’s zoning in line with updated town planning conditions.

This is the first step in a broader project to enhance the tenant mix, expand the footprints of key tenants and improve operational elements such as delivery access, it adds.

“Morningside Shopping Centre is a prime asset in an excellent catchment area with great access and visibility. Increased residential densification in the area is expanding the centre’s high-end shopper base,” says Flanagan & Gerard MD Paul Gerard.

While Flanagan & Gerard remains committed to its preferred co-ownership investment model, it says the Morningside Shopping Centre presented a unique opportunity for the group to exercise its rights when Grapnel Property Group elected to sell its stake.

“Sole ownership brings the benefit of swifter, more focused decision-making, while partnerships offer the synergies of complementary skills and resources.

“Acquiring Grapnel’s stake in Morningside Shopping Centre builds on our track record as strong, flexible partners who can adapt and innovate in line with the needs of our partners, retailers and consumers, as well as the rapid evolution of trends and technology in the property and retail sectors,” he says.