Ownership of the Eyethu Orange Farm Mall will be split into three 30% stakes that will be equally held by Stretford Land Developments, Flanagan & Gerard Investments and JSE-listed property loan stock company, Dipula Income Fund. The remaining 10% will be held by the Orange Farm Community Trust
"Standard Bank is proud to be associated with this project, which will give Orange Farm residents a sense of ownership in their own central business district," said Vanessa Murray, Head of Wholesale at Standard Bank's real estate finance division. "In addition to facilitating the initial introduction of the shareholders, we worked closely with each one to structure funding solutions that are unique and appropriate to each of their needs."
Construction of the 26,000 square meter mall has begun and is scheduled to open for trade in September 2014. The development of the shopping centre will reduce transport costs of the more than 400 000 Orange Farm residents who frequently have to travel long distances to do their shopping. The mall will be built around Orange Farm's Stretford train station and has expansion rights up to 35 000 square meters of gross lettable area (GLA) positioning it as the focal point of the community's emerging central business district.
The project is expected to employ between 2,000 and 2,500 people during construction and create 3,000 permanent jobs once completed. Confirmed anchor tenants include Standard Bank, Shoprite, Pick n Pay, Edgars, Truworths, Pep Stores, Mr Price, African Bank and Nedbank. The City of Johannesburg will also work with the developers to construct about 80 lock-up stalls for informal traders to operate near the entrances to the mall and at nearby taxi ranks, boosting small enterprise opportunities for the Orange Farm community. The Small Enterprise Finance Agency has pledged to underwrite between 25 and 35 small retail businesses that will operate from inside the mall.
"This deal illustrates Standard Bank's commitment to supporting our key clients and their initiatives in driving rural retail growth" said Ms Murray. "Our hope is that this will be a transformational development that will contribute towards improving the lifestyles of Orange Farm residents, providing accessibility for their retail requirements as well as adding to job creation in the area."
