Liberty Two Degrees R90 million redevelopment of City introduces firsts to the SA retail market

Sandton City redevelopment offers a unique opportunity to amplify brands and experiences

Liberty Two Degrees (L2D), a premier retail and South African focused REIT, is pleased to announce the completion of the redevelopment project of its world class and robust asset, . The

R90 million refurbishment has enhanced and reinforced the asset's position as the shopping destination of choice.

The redevelopment of Level 2 sought to address the challenges of that area of the mall that did not fully supplement the holistic offering of the Centre. The refurbishments commenced in July 2017 to address these challenges. L2D has thus successfully completed and opened what is termed Sandton City’s Fun District, which was opened to the public on 29 March 2018. The redevelopment saw the inclusion of a new offering of the mall dedicated to family fun, entertainment and food, at Sandton City’s Fun District, which is purposed to transform the asset into an inclusive shopping centre that caters for and meets the needs of the whole family.

This new area includes the addition of the first Hamleys World in , deemed the country’s largest store at a GLA of approximately 2,000m². Sandton City’s Fun District also features a new San Antonio flagship Halaal Spur at a GLA of 649m², catering to the previously underserviced market. The 280 seater offers a state-of-the-art children entertainment area, with a range of other entertainment experiences and activations. The level also includes South Africa’s favourite specialist gaming store BT Games, which saw the opening of its latest retail outlet at 102m².

The revitalised cinema level, which already offers an 11-screen Ster-Kinekor cinema complex includes Cine Prestige, 2D and 3D experiences and will also introduce a new experience at Sandton City which is to include South Africa’s very first kids-only cinema theatre and is due to be completed on 14 April 2018.

Amelia Beattie, CEO of Liberty Two Degrees comments "As with all our assets, we really endeavour to transform the retail space. The investment in the redevelopment and creation of a fun district has

been worthwhile. We are excited about the end result which really emphasises our unparalleled expertise in the sector. "

Stuttafords vacated Sandton City in July 2017 which offered an opportunity to enhance the tenant mix. This allowed the accommodation of new tenants which have further enhanced the customer's shopping experience.

Also included and enjoying a prime position of the centre is the flagship 1,807m² Dis-Chem which occupies a significant portion of the space vacated by at Sandton City. There are also other exciting plans in the pipeline for the balance of this space, which include Markhams, Pick n Pay Clothing, LC Waikiki and Exclusive Books. Dis-Chem and H&M have committed to occupying most of the space vacated by Stuttafords at Eastgate Shopping Centre, with plans to fill the remaining space to be announced in due course.

"The space vacated by Stuttafords gave us a great opportunity to bring in many new stores which we previously couldn’t accommodate. We have thus made good progress in reconfiguring the Stuttafords vacant space to accommodate multiple retailers. The new stores have been fit out and lease agreements have been concluded. We had announced in February that the Stuttafords space had been mostly let, we remain confident that the Stuttafords vacancy will be fully let in the 4th quarter of 2018".

L2D will also invest in the refurbishment of the food court which commenced in March 2018 and is due to be completed in November 2018. The artisanal nature of food today has inspired the look

and feel for the new food court, where natural elements such as landscaping, green features, and sustainable design have been included in the concept.

L2D also recently announced the official opening of the completed phase three development at Liberty Midlands Mall in , which is also home to many firsts in the region.

"We have a unique capability to transform environments and set trends as evidenced in our capabilities. As we futureproof our assets, we remain mindful of our customers' ever changing needs as we strive to meet them. We are delighted with the work we've done across the portfolio and continue to seek opportunities that are yield-enhancing. Our assets remain robust, we are confident that the overall development returns remain in line with original expectations."

-ENDS-

ENQUIRIES Liberty Two Degrees +27 (0) 11 448 5500 Amelia Beattie (CEO) [email protected]

NOTES TO EDITORS

About Sandton City Sandton City Shopping Centre is renowned amongst both local and international visitors as one of Africa’s leading retail destinations. With an impressive retail and leisure space covering 147 940m2, Sandton City is home to over 300 of the most exciting local and international retailers and presents you with a world of luxury in the exclusive Diamond Walk.

Adjacent to world-class hotels and mega corporate headquarters, the Sandton precinct measures a massive 215 000m2. Winning multiple Best Shopping Mall awards each year, Sandton City continues to be a leader in mixed-use properties.

Sandton City is owned by Liberty Group, Liberty Two Degrees, Pareto Limited, and managed by one of the country’s top commercial property services, JHI Retail.

For more information please visit either www.sandtoncity.com, www.liberty2degrees.co.za, www.pareto.co.za or www.jhi.co.za.

About Liberty Two Degrees Liberty Two Degrees is a portfolio created under the Liberty Two Degrees Scheme in terms of the CISCA to afford investors growth in income and capital by investing at fair prices in a balanced spread of immovable properties and related assets permitted by the Trust Deed.

The Liberty Two Degrees Scheme was registered by the Registrar of Collective Investments Schemes on 28 October 2016 and is managed by STANLIB REIT Fund Managers. Liberty Two Degrees acquired an undivided share of the Liberty Property Portfolio immediately prior to the listing.

About Liberty Two Degrees’ portfolio The portfolio is one of South Africa’s iconic, predominantly retail property portfolios with interests in assets such as the Sandton City Complex, the Eastgate Complex and Melrose Arch.

The portfolio comprises predominantly retail real-estate assets in South Africa. In , the retail assets are an interest in the Sandton City Complex, the Eastgate Complex and . Two regional shopping centres; Liberty Midlands Mall in KwaZulu- and Liberty Promenade Mitchells Plain in the are also included in the portfolio as well as interests in the mixed-use precinct of Melrose Arch and the newly developed Botshabelo Mall.

The Sandton City Complex is in the economic heartland of the country and showcases some of the most prestigious of international and domestic retailers. The attraction of its long-established iconic presence and the overall quality of the shopping experience make it irreplaceable and confers brand- value and recognition on the portfolio.

Similarly, the Eastgate Complex, with its strong history and recent upgrade, is in a large catchment area with good access. The recently refurbished Nelson Mandela Square is also a destination centre with a good entertainment offering that complements the neighbouring Sandton City Complex. Melrose Arch’s office and retail component supports its status as one of the leading mixed-use precincts in Johannesburg’s high end Northern Suburbs.

Liberty Midlands Mall and Liberty Promenade Mall are large high-quality centres within regional catchment areas positioned for high growth.

In addition to the offices included in the portfolio’s main retail complexes, the portfolio includes select office properties located in key business nodes with blue-chip anchor tenants. These properties include the Standard Bank Centre in Johannesburg, Liberty Centre in Century City Office Park in and Liberty Centre in Umhlanga Ridge, Durban. Also included the John Ross Eco-Junction where the Melomed Hospital and other development opportunities provide diversification and higher yield opportunities.