Growthpoint breaks ground on strategic R270 million redevelopment and expansion of Paarl Mall

The expansion of Paarl Mall is officially underway. Growthpoint Properties (JSE: GRT) has commenced a major R270 million redevelopment of its high-performing Paarl Mall in the Western Cape. The project forms part of Growthpoint’s ongoing asset management strategy. Its goal is to enhance core retail assets, unlock value and support long-term performance growth across its South African portfolio.

Strategic Investment to Strengthen a Core Retail Asset

The redevelopment will expand Paarl Mall’s gross lettable area to 44,474m². It also includes extensive internal reconfigurations and contemporary design upgrades throughout the centre.

“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, Head of Asset Management: Retail at Growthpoint Properties. “The expansion of Paarl Mall will ensure it remains well positioned to respond to the evolving needs of its growing and diverse customer base well into the future.”

Expansion of Paarl Mall Targets High-Growth Regional Performance

Paarl Mall is a small regional shopping centre with consistently high trading densities, low vacancies and strong tenant demand. These qualities place it among the top-performing centres in Growthpoint’s retail portfolio.

“We are concentrating capital and management focus on centres that lead in their catchment areas,” explains Jones. “These centres must deliver sustainable returns through rental growth and adapt quickly to changing consumer and retailer dynamics. Paarl Mall fits this profile exceptionally well.”

Opened in 2005, Paarl Mall is deeply embedded in its community. It will celebrate its 21st anniversary on completion of the redevelopment. The mall is strategically located alongside the N1 highway and has become the leading retail destination in the area. More than half of its shoppers visit weekly, reflecting strong customer loyalty. Vacancies remain consistently below 1%, while trading densities exceed the portfolio average.

Catchment Growth Supports the Expansion of Paarl Mall

The mall’s catchment area continues to experience strong residential development. More than 4,300 new housing units are planned or already under construction. This growth further strengthens the long-term retail fundamentals of the region.

Customer research conducted by Growthpoint highlights rising demand for broader fashion options, improved fast-food offerings and mall-wide Wi-Fi. The expansion of Paarl Mall directly addresses these needs and more.

By restructuring sections of large-format retail space, the mall will accommodate a wider range of tenants. This includes a sought-after international fashion brand, yet to be announced, which will be a first for Paarl.

Among the first confirmed new stores are contemporary furniture brand Cielo and a new Wordsworth store for book lovers.

Several existing tenants will also expand and introduce their latest store concepts. These include Truworths, Foschini, @home, Sportscene and Identity. Shoppers can also expect a broader restaurant and fast-food offering, anchored by a redesigned and family-friendly food court.

Improved Layout and Shopper Flow at Paarl Mall

A key feature of the expansion of Paarl Mall is the reconfiguration of its internal layout. This includes the addition of a striking new main entrance, which will serve as a focal point of the project.

Internal circulation will be improved through redesigned mall flows and the introduction of a prominent central fashion court. These changes aim to create a more intuitive and enjoyable shopping journey.

Heritage-Inspired Design and Modern Amenities

The redevelopment pays close attention to customer experience details. Interiors will be refreshed with heritage-inspired finishes, new tiling and updated lighting. Elegant bulkheads, upgraded amenities and modernised bathroom facilities will further enhance comfort and convenience.

Behind the scenes, the project also introduces upgraded operating infrastructure to support efficient retail operations.

Energy Efficiency and Sustainability Enhancements

Paarl Mall already benefits from an industry-leading hybrid electricity system. This solution combines solar power, battery storage, generators and grid supply.

The solar plant generates approximately 3,500 MWh annually. It supplies the mall and charges a Battery Energy Storage System housed in three climate-controlled 20-foot containers. This R50 million investment by Growthpoint reached full commissioning in June 2024.

The generator farm has since been integrated with the renewable energy system. This improves resilience, reduces carbon emissions during outages and ensures compliance with Drakenstein Municipality’s 45% load factor requirement. The solar PV system is also registered for Renewable Energy Certificates, supporting Growthpoint’s long-term decarbonisation strategy.

Local Economic Impact and Community Benefits

As with all Growthpoint developments, the expansion of Paarl Mall will deliver meaningful local and regional economic benefits. The construction phase will create jobs and prioritise the use of local contractors and service providers. Growthpoint will source materials and services locally wherever possible, directly supporting businesses in Paarl and the wider Boland region.

“Our focus is to create retail environments where customers stay longer, retailers trade better, communities feel proud and investors achieve more resilient returns,” says Jones. “The expansion of Paarl Mall demonstrates how selective reinvestment in a strong, established asset creates value for all stakeholders.”

Growthpoint began construction in mid-January and plans to complete the project in November 2026, ahead of the peak holiday shopping season. The mall will continue trading throughout the construction period. Careful planning will minimise disruption, while clear communication will keep shoppers and tenants informed at every stage.

About Growthpoint Properties

Growthpoint creates space to thrive with innovative and sustainable property solutions in environmentally friendly buildings, while improving the social and material wellbeing of individuals and communities. Growthpoint is South Africa’s largest primary JSE-listed REIT. It is an international property company invested in real estate and communities in South Africa and across the African continent, Australia and Eastern Europe. Growthpoint is at the forefront of environmental innovation in the property sector in South Africa. Visit growthpoint.co.za for more information. Connect with Growthpoint on Facebook, Twitter, LinkedIn and YouTube.