8 Billion Reasons to Celebrate

Futuregrowth’s Community Property Fund recently acquired Boitekong Mall in Rustenburg, North West Province, taking the portfolio assets over the R8 billion landmark.

Risky business

In the early 1990s, no banks would provide funding to property companies for developing shopping centres in townships or rural areas. Coming out of the apartheid era, these areas suffered exceptional poverty and unemployment, and lenders perceived the risks of investing to be insurmountable.

Futuregrowth recognised an opportunity – and dire need – for infrastructure development in the township and rural areas of post-apartheid South Africa, and, in 1996, the Community Property Fund was born. By establishing shopping centres in these areas, local municipalities would receive a boost in rates, which would enable them to deliver much-needed bulk services to the community. Futuregrowth also jumped at the chance to assist in alleviating poverty, by creating local employment during the construction phases, and where possible on a permanent basis once the shopping centres were completed.

Where are we now?

Today, about 11 500 permanent staff (and roughly 3 500 temporary staff) are employed across the 25 shopping centres owned by the Fund. Importantly, 80% of these are held by members of the communities surrounding the centres, which contributes significantly to the economy in these historically disadvantaged areas. The centres have also brought many essential goods and services to the community, and expedited the establishment of efficient commuter nodes and improvements to the local transport infrastructure.

Paying it forward

Over the years, the Fund has implemented specific social initiatives to improve the lives of local communities in meaningful ways. Amongst others:

• 15 850 scholars across seven communities have participated in Sporting Chance holiday programmes since 2015.

• 557 academic prizes have been awarded to top achieving scholars across 96 schools in seven provinces since 2015.

• 69 425 pairs of school shoes, together with stationery sets, have been donated via Barefoot No More to children living near 21 of the Fund’s centres since 2015.

• 57 526 scholars at 49 schools have been provided with Lap Desks since 2015.

• Unjani Clinics set up at 13 of the Fund’s malls have brought healthcare services to people living nearby since 2015.

• 10 062  scholars across 15 schools in Gauteng have participated in the Cangro food security project since 2016.

• A free Wi-Fi initiative has been implemented at 22 of the Fund’s properties since 2021.

• 11 promising learners have been given access to superior secondary school education through the Rialto Project since 2017

Perceptions refuted

With intensive, professional centre management and rigorous attention to building customer loyalty and community support, the Fund has demonstrated that perceived risks can be effectively mitigated and overcome. With performance of 12.83% since inception, the Fund has demonstrated that investments in townships and rural areas can perform well over the long term, after all. Our R8 billion of assets (and their social impact) are testament to this

For further information contact Smital Rambhai, Portfolio Manager: Community Property Fund, at srambhai@futuregrowth.co.za