PROPERTY EDITOR

STEPHEN Leith of Collins Commercial Properties is living proof that when it comes to leasing or selling properties, specialising in niche markets is the route to success.

As Collins's specialist broker in the leisure industry, Leith has signed six major entertainment/restaurant leases within the last four months.

The significance in three of these leases was that they were in the same Strand Street/Waterkant Street area.

One deal was in respect of the old Drunken Springbok Pub, now Dudu's African Restaurant. Another was next door, for Meg's Bar, the upstairs section of the popular Crowbar restaurant/pub. Both leases were to black woman entrepreneurs.

Meg's Bar has been upgraded into a modern late night entertainment venue and its neighbour, Dudu's, is specialising in indigenous cuisine. Dudu's, which is owned by Duduzile Ndlovu, occupies 200m2 over two floors and has a cap value of over R450 000.

Meg's Bar is operated by Megan Carolisson, who has signed for 360m2 with a cap value of over R1 300 000.

Meg's Place was previously located at The Golden Acre mezzanine level where it traded successfully for three years.

Carolisson decided to relocate and by moving she has been able to provide better facilities, such as a wrap-around sundowner balcony.

To enliven the entertainment aspect, she has now added jazz and disco nights on Fridays and Saturdays. Last month Leith concluded a lease with a cap value of almost R1 million on behalf of Spearhead Properties for the second and third floor night club formerly know as Madisons, on the corner of Loop and Strand.

While Long Street remains the first choice of club operators and a certain style of restaurants, with the conclusion of these two leases Leith is convinced that the Strand/Waterkant axis, once the acknowledged late night destination for local clubbers and which had fallen on seedy times, is returning to popularity.

Where the number of bars had reduced to two by last year there are now five bars, discos and restaurants operating successfully which augurs positively for the area once again. Leith describes the current leisure market as strong but competitive with premiums being paid for top sites.

He has just concluded a restaurant lease in the old Morrissey's Butchery site at R100 per m2, believed to be the highest ever achieved in Long Street.

He reports that some landlords are demanding and getting as much as R120 per m2 which, taking the traditional rule of thumb of not paying out more that 10% of your turnover on rentals, means that restaurateurs are often being forced to set prices at very high levels.