Retail property and management group Investec Property Group has said the year ahead looks very promising for the retail sector, on the back of strong growth recorded in 2002.

Group executive Ronnie Sevitz said this in a statement yesterday announcing several hundred million rands worth of investment plans for the group around the country this year, including a revamp and beautification of the Pier 14 shopping complex in North End, Port Elizabeth.

According to Mr Sevitz, significant expansion around the country underpins recent announcements of a 3 per cent economic growth in the third quarter of 2002 and the 'highest confidence levels' among retailers in recent times.

'We have seen significant increases in select demand for retail space at shopping centres throughout South Africa, which is quite remarkable considering acceleration in CPIX inflation and four interest rate hikes during the course of last year,' he said.

Mr Sevitz added the Eastern Cape was having its share of the growth and the group looked to strengthen its hold in the region.

He said in East London, property in the Growthpoint Fund stable, Beacon Bay Shopping Centre, was 'doing extremely well', and plans for expansion to include an Edgars store valued at R5-million were progressing.

'Additional growth in the Eastern Cape is the acquisition of the management of Pier 14 in Port Elizabeth, for which we plan to make necessary modifications and improvements in the new year,' he said.

Mr Sevitz said Investec Property Group were very encouraged by the consistent positive growth in the retail sector throughout 2002.

'Economic factors such as indications that inflationary pressures could start to abate, a stronger rand and expectations of a decline in the interest rate next year, give us reason to believe this growth will continue in 2003,' he added.

In KwaZulu Natal R70-million has been earmarked for the revamp of the La Lucia mall, while in Gauteng Investec planned the R20-million refurbishment of Hatfield Plaza, in Pretoria.

In the Western Cape the group had recently acquired the up-market R70-million Royal Ascot centre.

Eastern Province Herald