Redefine Retail Portfolio Reaches R30.6bn With Improved Occupancy And Tenant Demand

Source: Supplied. Nashil Chotoki, retail asset manager at Redefine.

Supported by strategic asset enhancements, a stronger tenant mix and sustained investment, the portfolio recorded improved occupancy, higher trading density and growing tenant demand. Valued at R30.6bn, the portfolio comprises 54 properties and more than 2,700 tenants, underscoring the resilience of Redefine’s diversified retail offering in a challenging economic environment.

“Our focused retail strategy is delivering measurable results across the portfolio,” says Nashil Chotoki, retail asset manager at Redefine.

“By strengthening essential categories, investing in experiential offerings and accelerating our sustainability agenda, we are positioning our centres for long-term performance, even in a macro environment that remains challenging for South African consumers.”

A strategy built for stability and growth

Over the past two years, Redefine has executed a targeted set of interventions aimed at building resilience and optimising performance. These include:

• Increasing exposure to grocers, securing high-frequency anchors that drive consistent footfall
• Diversifying the apparel category, with a deliberate focus on mid- to high-end fashion, a segment that continues to perform strongly
• Expanding entertainment, dining and experiential offerings, which are showing stable rental growth and contributing to improved dwell times
• Upgrading and reconfiguring centres to enhance tenant layouts, which strengthen convenience and support optimal asset performance

These actions are reflected in improved portfolio metrics. Retail renewal reversions moved to a positive 3.0%, tenant retention by gross monthly rental reached 97.1%. Letting activity totalled 162,225 m², with new deals accounting for 32%.

“Our retail strategy is intentionally built around resilience, relevance and results. By strengthening essential categories, expanding experiential offerings, and investing in targeted reconfigurations, we are seeing measurable improvements in trading performance and tenant retention across the portfolio.

"The stability in our rent-to-turnover ratios confirms that the interventions we’ve made are working, even in a constrained consumer environment,” says Chotoki.

Energy resilience becomes a competitive advantage: A standout area of progress is Redefine’s retail solar programme, which has grown substantially over the past two years. The retail portfolio now has 47,792 kWp of installed solar PV capacity, with a further 2,714 kWp in progress. This supports:

• Increased renewable energy generation across the retail footprint
• Reduced reliance on grid electricity
• Tangible carbon-reduction benefits
• Improved cost efficiencies and asset yields

To enhance reliability further, Redefine is investing in large-scale battery storage solutions, with first installations underway at East Rand Mall and Blue Route Mall. Given the rise in electricity costs, battery systems are expected to deliver meaningful margin benefits once operational.

Smart operations through technology and risk mitigation: Redefine is strengthening operational resilience through technology, including enhanced footfall analytics. These tools support smarter leasing decisions and more accurate performance insights.

The company has also mitigated risk associated with cinema operators by reconfiguring space and introducing alternative entertainment and leisure uses that align with evolving consumer behaviour.

A diversified, future-fit portfolio

Redefine’s retail portfolio is intentionally diversified across super-regional, regional, convenience and other retail formats, offering balance and stability. Regional and convenience centres each account for 41% of the portfolio by value, while super-regional centres represent 13% and other retail assets 5%.

A manageable lease expiry profile, with 24% of gross monthly rental expiring in 2027 and 15% beyond 2030, further supports income stability.

“Our diversification is one of our greatest strengths,” adds Chotoki. “It allows us to respond to shifting trends and to invest where we see both immediate value and long-term opportunity.”

Ongoing investment into existing assets: A pipeline of enhancements and reconfigurations to enhance the experiential offering and essential services is currently underway, at East Rand Mall, Centurion Mall, Maponya Mall and Cradlestone Mall.

“These projects reflect our belief in the long-term strength of physical retail, not as it existed in the past but as an experience-led, convenience-driven environment that adapts with its communities,” concludes Chotoki.