Growthpoint Properties acquired the 40 000 m2 Waterfall Mall in Rustenburg for

R284.6 million, with the transfer date effective 1 April 2004, and has also purchased a

3 hectare parcel of vacant land adjoining Waterfall Mall with existing rights for an additional 9 500m2 of retail use.

Growthpoint will extend Waterfall Mall, creating 15 000m2 of space to accommodate national fashion tenants and incorporate a fast food court.

"As a result of the high trading densities at Waterfall Mall, which are showing increases in excess of 27 per cent year-on-year, we are looking to enhance our fashion component," explained Stephan le Roux, Fund Manager for Growthpoint Properties, managed by Investec Property Group.

Growthpoint's expansion of the shopping centre will meet the demand from national retail chains to increase their existing retail space within the centre. This will also create the opportunity to broaden the tenant mix by bringing in new retailers such as Cape Union Mart.

"We are right-sizing national tenants, such as Truworths who require in excess of 1 000m2 for their existing store and other brands. Mr Price will relocate to larger premises and Topic, who has already relocated to their bigger, new-look store is reporting growth in excess of 50%," said le Roux.

Bringing more retail fun to Waterfall Mall is the exciting 800m2 fast food court that will form a major component of the extension.

The fast food court, which is already fully tenanted on intent, will incorporate a seating area of 300m2 and will appeal to younger generations. This will be complemented by the proposed extension of the games arcade, Hard Hats, to include a bowling alley and strengthen the entertainment and leisure offerings at Waterfall Mall.

The extension of Waterfall Mall is planned for completion, with new and upgraded stores trading, during the first quarter of 2005.

In addition, Growthpoint Properties will develop a new free-standing destination shopping centre of 5 700m2 on two levels, which will be separate from Waterfall Mall but linked through integrated parking.

Although destination orientated, the tenant mix will complement Waterfall Mall and will offer value driven retail opportunities. On the lower level, negotiations are under way with a national furniture retailer to establish a 2 500m2 store.

Additional parking will be provided within the free-standing centre.

The combination of Waterfall Mall and the destination shopping centre will create a strong retail node serving a cross-section of retail needs, ideally located with easy access from the new N4 toll road and the R24.

"Phenomenal economic growth has taken place in the Rustenburg region and, as a result, we have every confidence in our investment in Waterfall Mall and the expansion of the retail node," said le Roux.

Over the last five years total turnover at Waterfall Mall has increased by more than 270% to in excess of R530 million per year. The support for the centre is reflected in the continued increase in people visiting the centre with foot counts growing at double digits.

This growth is largely due to increased mining activity in Rustenburg’s platinum mines, with the rise in the platinum price bringing more wealth to the area. In turn, this has led to capital investment and, as mining is labour intensive, more people moving into the area.

In addition, le Roux believes that the growth in business-tourists visiting Rustenburg creates a potential market for Waterfall Mall.

"We are extremely up-beat about the opportunities in Rustenburg and look forward to being a part of the community," said le Roux.

Waterfall Mall will further enhance Growthpoint's overall high-quality, well-managed property portfolio with a diverse geographical representation and balanced sectoral spread, favouring retail, which comprises 54% of the portfolio value and includes exposure to 10 regional shopping centres.

Stephan le Roux

Investec Property Group

Tel. 021 323 3134

Cell: 082 607 0245

or

Marketing Concepts

Sandy Davey

Tel. 011 880 2213

083 453 6668