The recent decision by the Competition Tribunal marks the unconditional approval of the merger between Redefine Properties and the remaining ownership of the prestigious Mall of the South in Johannesburg.
Following the Competition Commission's green light last week, Redefine Properties finalized the transaction, fully acquiring the Mall of the South from its co-owner, RMB Investment and Advisory (RMBIA).
The super-regional center, spanning 67,000 sqm, has been 80%-owned by RMB Investment and Advisory (RMBIA), with Redefine holding the remaining 20%.
This sale signifies the completion of terms between the two entities following the initial acquisition of the mall from Zenprop Properties in 2020.
In the 2020 deal, RMB provided a term and revolving facility up to R1.82 billion for the outright acquisition of the mall from Zenprop Property.
As part of the acquisition, Redefine assumed responsibility for property management services at the mall.
Moreover, Redefine issued a put option (shares), enabling RMB to sell its shares in the mall to Redefine, and a put option (claims) to First Rand (RMB’s owner), granting First Rand the right to transfer its rights and obligations to Redefine.
Subsequently, RMB exercised its option, necessitating Redefine to acquire the remaining 80% shareholding of the mall, ensuring uninterrupted operation by Redefine from the date of acquisition.
This milestone underscores Redefine Properties' strategic growth and commitment to enhancing South Africa's commercial real estate landscape.