Tokai shopping centre, owned by SA Retail and Martprop, is set to become one of Cape Town’s most elegant convenience centres.

Demolition of the existing 25 line shops starts soon to make way for a new 3 000sqm Pick ‘n Pay store. The existing Pick ‘n Pay store will continue to trade up to the day of the move to the new centre at the end of September.

In the second phase of the R40 million redevelopment about 20 larger line shops totaling 4 000sqm will be built on the original Pick ‘n Pay site. The project should be completed in the second quarter of 2005.

Izak Joubert, property director of Pick ‘n Pay, says turnover is expected to double at the new store which will have a significantly bigger trading area, and the centre should go from strength to strength. "The location is good but the old store and the centre did not keep pace with a changing market."

Pick ‘n Pay is not represented at the nearby Blue Route regional centre and the nearest branch is a family store 3,5 kilometres away at Steenberg.

Peter Sparks, managing director of SA Retail, says Pick ‘n Pay is on a 15 year lease at market related terms and demand has been strong for the new line shops from destination-type operations such as camping, hardware and home décor outlets. Leasing is being managed by Marriott Retail and the project manager and co-ordinator is Old Mutual Properties.

He says the Tokai centre was bought from Old Mutual in December 2002, and planning of the best possible design solution has been underway for the past six months. "We bought the property on a 16% yield when the asset was performing poorly and it was always the intention to redevelop the site."

Tokai is the only convenience centre in one of the fastest growing residential areas of Cape Town and should complement rather than compete with Blue Route Centre. There will be lots of parking at the redeveloped Tokai centre with shoppers able to park in the vicinity of the store of their choice.

SA Retail is a listed property company with a national portfolio of 26 shopping centres worth more than R1 billion.

For more information contact Peter Sparks 0824625887