Burstone Partners with Nedbank on 14 South African Properties
Burstone Group agreed to move 14 South African malls and warehouses into an unlisted platform and sell half of the equity to Nedbank Property Partners for about US$41.6 million. The portfolio was valued at R5.155 billion, a 5% discount to its book value. The deal still needs Competition Commission approval and property transfers, with an effective date expected by 1 December 2026.
Burstone, once Investec Property Fund, is a JSE-listed REIT. Its directly owned South African portfolio was valued at R13.9 billion at end-March 2026. It already invests with partners overseas, including Blackstone and Hines in Europe and Irongate in Australia, and had sought a domestic funds platform.
The seed assets mix five retail sites with nine industrial/logistics buildings. Named malls include Dihlabeng, Fleurdal, The Neighbourhood Square, Kriel and Zevenwacht. The R5.155 billion portfolio is 5% below its R5.429 billion book value. Nedbank Property Partners, part of Nedbank CIB, buys half the equity for roughly R677 million.
The transaction could affect shoppers, tenants and workers at the 14 malls and warehouses, as new bank-backed ownership may influence investment, rents or property management. Local suppliers and municipalities may see indirect effects if the platform upgrades assets or changes leasing strategies. For Burstone investors, lower debt may improve resilience, while Nedbank gains exposure to South African real estate. Competition authorities’ review may shape how quickly any changes reach these communities.