Growthpoint Properties has commenced a major redevelopment of its high-performing Paarl Mall in the Western Cape as part of its ongoing asset management strategy to enhance core retail assets across its South African portfolio, adding value and supporting long-term performance growth.
The R270-million project will expand Paarl Mall's gross lettable area to 44 474 m2 and introduce significant internal reconfigurations and design updates throughout the mall, says Growthpoint.
"Paarl Mall's extensive upgrade and extension project is the result of a deliberate strategy to optimise its retail mix and elevate the shopper experience," says Gavin Jones, Growthpoint Properties Head of Asset Management: Retail. "It will ensure Paarl Mall remains well positioned to anticipate and respond to the evolving needs of its growing, diverse customer base, well into the future."
As a small regional centre with consistently high trading densities, low vacancies and strong tenant demand, Paarl Mall is among several high-performing shopping centre assets Growthpoint identified for targeted investment as part of its ongoing drive to further refine and strengthen its core retail portfolio. adds the company.
"We're concentrating capital and management focus on centres that lead in their catchment areas, offer sustainable returns through rental growth and can adapt quickly to changing consumer and retailer dynamics. Paarl Mall fits this profile excellently. It is well established and superbly located at the heart of a thriving community with a strong and growing customer base," says Jones.
Paarl Mall, which opened in 2005, is deeply embedded in its community and will mark its 21st anniversary with the completion of this redevelopment. Strategically positioned alongside the N1 highway, it has established itself as the leading retail destination in the area. The centre benefits from strong shopper loyalty, with more than half its customer base visiting weekly. It is anchored by a robust national tenant mix. The mall has consistently maintained vacancies below 1% and delivers above-average trading densities within Growthpoint's retail portfolio, adds the company.
The mall's catchment area is undergoing rapid residential growth, with more than 4 300 new housing units planned or under construction, further strengthening long-term retail fundamentals in the region, says the company.
"In addition to the area's growth, our customer research points to rising demand for a wider fashion offering, enhanced fast-food choices and mall Wi-Fi. Our redevelopment plan directly addresses these shopper priorities, and more," says Jones.
By restructuring a portion of large-format trading space, the mall will accommodate a bigger range of retailers, including a sought-after international fashion brand, yet to be named, which will be a first for Paarl. Among the first in an exciting lineup of new store names announced are contemporary furniture brand Cielo and a new Wordsworth store for book lovers, adds the company.
Several well-established mall retailers have embraced the opportunity to expand their stores, introduce their latest concepts and offer additional ranges. They include Truworths, Foschini, @home, Sportscene and Identity. The mall will also offer larger restaurant and fast-food selection and feature a revamped family food court, says the company.
Pivotal to the mall's upgrade are the significant changes being made to its layout, starting with the addition of an impressive and inviting new main entrance — a highlight of this project. Internal mall flows will be reconfigured for better shopper circulation with a prominent central fashion court, adds the company.
The revamp pays close attention to the details that shape how customers experience the mall. Interiors will be refreshed with heritage-inspired finishes, new tiling and lighting, elegant bulkheads, upgraded amenities and modernised bathroom facilities, says the company.
Upgraded operating infrastructure essential for efficient retail operations will also be introduced behind the scenes. Key enhancements include improved energy efficiency and mall-wide free Wi-Fi infrastructure, adds the company.
Paarl Mall already features a new industry-leading hybrid electricity solution, combining solar, battery, generator and grid power. Its solar plant generates around 3 500?MWh annually, supplying the mall and charging a Battery Energy Storage System (BESS) housed in three climate-controlled 20-foot containers. Thanks to this R50-million investment from Growthpoint, it reached full commissioning in June?2024, says the company.
To enhance resilience and ensure reliable power supply for tenants, the mall has since integrated its generator farm with the renewable energy system, improving backup capability, reducing carbon emissions during grid outages and maintaining compliance with Drakenstein Municipality's unique 45% load factor requirement. The solar PV system has been registered for Renewable Energy Certificates (RECs), supporting Growthpoint's long-term decarbonisation strategy, adds the company.
"Together, these changes combine to create a more enjoyable, varied and seamless shopping environment at Paarl Mall. Every element has been carefully considered to refresh the mall experience while preserving the familiar character that resonates with loyal shoppers," says Wouter de Vos, Growthpoint's Regional Head: Western Cape.
As with all Growthpoint's developments, the Paarl Mall project is being purposely executed to deliver meaningful local and regional economic benefits. The construction phase will create employment opportunities, with a strong focus on engaging local contractors and service providers. Where feasible, materials and services will be sourced locally, supporting businesses in Paarl and the wider Boland region, adds the company.
Across its retail portfolio, Growthpoint is pursuing a strategy focused on refurbishments, optimised tenant mixes, energy-efficient operations and disciplined capital allocation, all aligned with its overarching goal of enhancing portfolio quality and delivering sustainable, long-term value for stakeholders, says the company.
"Our focus is to create retail environments where customers stay longer, retailers trade better, communities are proud and investors gain more resilient, higher returns," Jones adds. "Paarl Mall is an excellent example of how selective reinvestment in a strong, established asset can add value for all stakeholders." As it grows with its community, these improvements are expected to reinforce Paarl Mall's market leadership and strong performance track record.
Construction for the Paarl Mall redevelopment began in mid-January, with completion scheduled for November 2026, ahead of the peak holiday shopping season. The mall will be open for trading throughout the construction period, and extensive planning is in place ensure temporary disruptions are minimised, with clear communication from the mall throughout the process, concludes Growthpoint.
For more information, visit www.growthpoint.co.za. You can also follow Growthpoint on Facebook, LinkedIn, or on Instagram.
*Image courtesy of contributor