No. 789456
Valuation Report
Umhlanga Retail Centre
200 Lighthouse Road, Durban, South Africa
Reference
VAL-2026-002
Valuation date
31 May 2026
Report date
15 June 2026
Basis of value
Market Value
Currency
ZAR
Status
under review
Client
Northstar Capital
Lead valuer
A. Mokoena
Reviewer
K. Naidoo
Letter of transmittal
15 June 2026
M. Daniels
Head of Real Estate
Northstar Capital
8 Sandhurst Crescent
Dear M.,
Re: Valuation of Umhlanga Retail Centre
In accordance with your instruction dated 31 May 2026, we have inspected the above property and have prepared this valuation report stating our opinion of the market value as at 31 May 2026, for the purpose of annual financial reporting (ifrs 13 fair value).
The valuation has been prepared in accordance with IVS 2025, RICS RED BOOK 2025. The opinion of value is set out in the executive summary that follows, and is supported by the analysis, methodology and evidence detailed in the body of this report.
We trust the report meets your requirements. Please do not hesitate to contact the undersigned should you require further clarification.
Yours faithfully,
A. Mokoena
MRICS, Professional Valuer (SACPVP)
Acme Valuers Ltd
1. Executive summary
| Property | Umhlanga Retail Centre |
| Address | 200 Lighthouse Road, Umhlanga Ridge, Durban, South Africa |
| Category | Commercial — retail |
| Tenure | freehold |
| Valuation date | 31 May 2026 |
| Basis of value | market value |
| Purpose | Annual financial reporting (IFRS 13 fair value) |
| Client | Northstar Capital |
Indicated values by method
| Comparable | ZAR 343,356,000 |
| Income capitalisation | ZAR 512,847,000 |
Market Value
ZAR 348,000,000
2. Scope of work & terms of reference
This valuation has been prepared in accordance with the International Valuation Standards (IVS) 2025 and the RICS Valuation – Global Standards (Red Book) 2025, and complies with the SACPVP Code of Professional Conduct.
Conflicts of interest
The valuer confirms that no conflicts of interest exist in respect of this engagement.
3. Property description
| Property name | Umhlanga Retail Centre |
| Address | 200 Lighthouse Road, Umhlanga Ridge, Durban, South Africa |
| Category | Commercial — retail |
| Tenure | freehold |
| Title deed number | T987654/2010 |
| Erf number | Erf 5678, Umhlanga Ridge |
| Year built | 2008 |
| Land area | 50,800 m² |
| GLA | 24,180 m² |
| Lettable area | 23,500 m² |
| Building grade | A |
| Parking bays | 1100 |
| Parking ratio | 4.60 bays / 100 m² |
| Occupancy rate | 96.2% |
| WAULT | 3.80 years |
| Anchor tenant | Pick n Pay Hyper · Woolworths · Mr Price |
| Tenants on roll | 86 |
| ESG rating | Green Star 4-Star |
4. Locality & market commentary
The subject is located in Umhlanga Ridge, Durban, South Africa.
Highest and best use (IVS 104 §140)
Continued use as a sub-regional shopping centre.
5. Methodology
The following valuation approaches were applied: the Comparable Sales / Market approach, the Income Capitalisation approach and the Depreciated Replacement Cost (DRC / GRC) approach. The approaches are reconciled in section 9 to arrive at the opinion of value.
Comparable / market approach
Sales of properties similar to the subject are analysed for unit rates per m². Each comparable is adjusted for differences in location, size, time, condition, tenure, quality and any special factors to derive an adjusted rate that is comparable to the subject. Adjusted rates are weighted by the valuer's assessment of relevance to arrive at an indicated unit rate, applied to the subject's area.
Income capitalisation approach
The current rental income is analysed against market rents to determine sustainable gross income. Vacancy and operating expenses are deducted to arrive at net operating income, which is capitalised at a market-supported rate to indicate value.
DCF approach
Cash flows are projected over a defined hold period and discounted at a risk-adjusted discount rate. The terminal value at the end of the hold is derived from a market exit yield. The sum of the present values represents the indicated value.
Depreciated replacement cost (DRC / GRC)
The cost to replace the building improvements is calculated using current rates, less allowances for physical, functional and economic obsolescence, plus the underlying land value. Used as a cross-check and for insurance reinstatement valuations.
6. Comparables schedule
Pinned comparables analysed against the subject. Each comparable's adjusted unit rate reflects the valuer's deltas for location, size, time, condition, tenure, quality and other factors. The weighted-average adjusted rate informs the indicated value.
| # | Address | Date | Size (m²) | Price | Base rate | Adj % | Adj rate | Wt | Source | Verified |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Gateway Mall (50%) Umhlanga, Durban | 22 April 2026 | 38,500 | ZAR 312,000,000 | ZAR 8,104/m² | -11.0% | ZAR 7,213/m² | 3 | MSCI / RCA | Doc verified |
| 2 | Pavilion Power Centre Westville, Durban | 30 January 2026 | 14,900 | ZAR 96,000,000 | ZAR 6,443/m² | +8.0% | ZAR 6,958/m² | 2 | MSCI / RCA | Doc verified |
| Weighted-average adjusted rate | ZAR 7,111/m² | |||||||||
6.1 Adjustment rationale
- Gateway Mall (50%). −8% size (Gateway is materially larger), −2% quality (super-regional vs sub-regional). (Same node, larger super-regional centre.)
- Pavilion Power Centre. −3% location (Westville is secondary), +6% size, +3% time, +2% quality. (Smaller power centre, secondary node.)
7. Income capitalisation
| Analysis date | 31 May 2026 |
| Gross potential income (annual) | ZAR 65,400,000 |
| Vacancy & bad debt | 3.8% |
| Operating expenses | ZAR 18,900,000 |
| Net operating income | ZAR 43,607,000 |
| Capitalisation rate | 8.50% |
| Indicated value | ZAR 512,847,000 |
Occupancy
96.2%
WAULT
—
Tenants
0
8. Depreciated replacement cost (GRC)
Building-element schedule used for insurance reinstatement. Professional fees applied at 12.0%; VAT at 14.0%.
| Element | Area | Unit rate | Amount |
|---|---|---|---|
| Total replacement cost | — | ||
9. Reconciliation & opinion of value
Primary reliance placed on Income Capitalisation, sense-checked against MSCI sale evidence.
Primary method adopted: income capitalisation.
Market Value
ZAR 348,000,000
10. Risk register
No material risks identified beyond standard valuation assumptions.
11. Assumptions
General assumptions
- Tenancy schedule. Tenancy schedule supplied April 2026; assumed complete.
Special assumptions
- Anchor renewal. It is a special assumption that the Pick n Pay anchor lease will be renewed on substantively similar terms in 2027.
12. Limitations & confidentiality
The opinion of value reflects market conditions at the valuation date. The valuer has not undertaken structural, geotechnical or environmental investigations and assumes no responsibility for matters that would be disclosed by such investigations. Areas have been quoted as supplied by the client and have not been independently verified by survey.
This report is confidential to the addressee for the purpose stated. No responsibility is accepted to any third party who may rely on this report without our express written consent. The report may not be reproduced, quoted from or referred to in whole or in part without the prior written consent of Acme Valuers Ltd.
13. Certificate of value
The valuer has acted independently of the parties to the transaction and has no interest, direct or indirect, in the property valued. This valuation has been performed in accordance with International Valuation Standards (IVS) and the RICS Valuation – Global Standards (Red Book). The signatory firm is a member of SACPVP · RICS · REIV.
Lead valuer
A. Mokoena
MRICS, Professional Valuer (SACPVP)
Reg. No. PV-1234/4
Reviewing valuer
K. Naidoo
FRICS, Professional Associate Valuer
Reg. No. PV-0567/2
14. Appendices
- Appendix A — Photographs of the subject property (3 on file)
- Appendix B — Title deed extract / proof of ownership
- Appendix C — Approved building plans (where available)
- Appendix D — Tenancy schedule / rent roll
- Appendix E — Letter of instruction & signed terms of engagement
- Appendix F — Comparable evidence working file (CSV / spreadsheet)
Appendix A — Photographs
