The acquisition of a controlling share for the prominent 37,000 sqm suburban retail centre located in Highlands North, Johannesburg has been successfully completed.
The transaction, which saw Fortress Real Estate Investments Limited (Fortress) acquire 51% of the share capital of Tradecco Properties, the entity that owns the mall, has been approved by the Competition Commission of South Africa without conditions.
Balfour Mall has long been a recognised landmark in Johannesburg’s northern suburbs, and Fortress believes it has enormous untapped potential, says Steven Brown, the CEO at Fortress.
Repositioning Balfour Mall
“We are committed to repositioning Balfour Mall as a vibrant, safe and welcoming community retail destination – a place that serves families, that the neighbourhood is proud of and that delivers real value for its tenants, shoppers and the broader precinct,” Brown said.
Balfour Mall is situated on the corner of Louis Botha Avenue and Northview Road in Highlands North, one of Johannesburg’s most densely populated northern suburbs. The property was originally acquired by Tradecco from Burstone Group Limited (Burstone), a JSE-listed REIT, in a transaction approved by the Competition Commission in December last year.
The acquisition forms part of a broader vision for the node. Fortress is partnering with local shared value property developers, Consolidated Urban and Forever Young Capital. These purpose-driven investment companies, founded by Jeremy and Paul Berman and Jonti Brozin, will drive the regeneration of the surrounding precinct.
Consolidated Urban and Forever Young Capital have a strong track record of restoring and rejuvenating historic Johannesburg neighbourhoods, having been instrumental in projects including Victoria Yards. The partnership brings a shared belief that commercial investment and community renewal are not mutually exclusive and that Balfour Mall can once again become a destination people are proud of.
“We have always believed that great cities and neighbourhoods are built from the inside out, starting with the people in the community,” says Jonti Brozin of Forever Young Capital.
“Balfour Mall has been part of this neighbourhood’s story for decades. We are excited to work with Fortress to write the next chapter: one that brings the soul and heritage back to the neighbourhood, creates opportunity for local people and businesses and gives this precinct the energy and pride it deserves.”
Comprehensive physical and operational transformation
Fortress and Forever Young Capital intend to undertake a comprehensive physical and operational transformation of the mall, with a targeted reopening in 2027.
They said the redevelopment will address the root causes of the mall’s decline and create a retail environment that is genuinely fit for the community it serves by addressing:
- Retail and experience: A refreshed tenant mix anchored by two major grocery retailers, new destination tenants, family entertainment, restaurants and lifestyle offerings.
- Access and infrastructure: Improved access from Louis Botha Avenue and Northview Road, better parking, a formal taxi rank and hawkers zone.
- Sustainability and upgrades: Solar, smart metering, water-saving systems and full electrical upgrades, built to fortress specifications and designed to run efficiently for the long term.
- Community and precinct investment: The vision extends well beyond the mall itself. Fortress and Forever Young Capital are investing in the surrounding Highlands North precinct – cleaning up roads and public spaces, upgrading school facilities, regenerating the local sports club and soccer fields for the broader community, including Alexandra, and bringing a visible security presence to the area through the Cap Community partnership.
High-profile Gauteng retail asset added
The acquisition is said to add a high-profile Gauteng retail asset to the Fortress portfolio and reinforces the group’s conviction in well-located, community-serving retail properties.
The Competition Commission’s unconditional approval reflects confidence in the transaction’s benefit to competition and the broader market. Fortress will continue to identify and execute on attractive investment opportunities within the South African property sector where active management can drive meaningful improvements in income, capital value, and community impact.
Last week, The Competition Commission said it has approved the proposed transaction whereby Capital intends to acquire Tradecco, without conditions.
It said the primary acquiring firm is Capital, ultimately controlled by Fortress Real Estate Investment Limited (“Fortress”). Fortress is not controlled by any firm. The Acquiring Group is constituted of several firms that collectively own a portfolio of immovable properties and rental enterprises across all nine provinces of South Africa.
Tradecco is a special purpose property investment vehicle, established for the purposes of acquiring and holding income-generating immovable property. Its core business activity is the acquisition, ownership and management of commercial property assets in South Africa.
Tradecco only owns one retail property, namely, the immovable property and rental enterprise known as Balfour Park Mall.
The Commission said it is of the view that the proposed transaction is unlikely to substantially lessen or prevent competition in any relevant market. The proposed transaction does not raise significant public interest concerns, it added.
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