16 Jun 2004 : Steenberg centre to be expanded by 47%

The 30-month-old Steenberg Village retail centre at the Rabie/Cavcor facilitated Westlake, Constantia development, is about to be expanded. Nedbank Property Finance, which funded the original development, will again be backing the extension, which will cost in the order of R17,5 million. This, says the Nedbank Corporate Properties' Head, Timothy Irvine, will form part of the long-term loan facility approved for the developers.

The original centre had 3 800m2 and Retail Africa, who head up the development consortium made up mostly of high profile Cape Town businessmen, were able to pull in a Pick 'n Pay Family Store, Jake’s Restaurant, Mama Roma Restaurant , Manuka Cafe and others. They were able to let the entire complex within a few weeks of the announcement that they were going ahead.

Now Retail Africa and their partners will be adding 1800m2, in the process taking the estimated value of the project to in excess of R45 million, and increasing the lettable area to 5600m2.

Casey Van der Vlugt of Nedbank Property Finance said that Retail Africa is able to cherry pick its tenants for the new section to get exactly the right mix because demand for space here has far exceeded the meterage available.

In the new section, which will be built on the southern half of the current complex, thereby extending the crescent shape, Retail Africa will be housing a Woolworths Food outlet, much needed takeaway outlets and interesting speciality upmarket traders. Jake’s Restaurant, which has operated successfully in the first section, has asked for its premises to be extended.

Van der Vlugt said that the developers have already received numerous offers for the centre but remain long term holders of the property at this stage. He said that, in any event, the value of the centre will not be completely unlocked until the expansion project is completed.

"Although we do not have official figures," said Van der Vlugt, "it is clear that the tenants have experienced significant growth in turnover since the centre first opened."

Irvine said that the project had had an upmarket. "classy" image right from the outset.

"Its position, right next to the entrance to the Reddam House school, opposite the Steenberg Golf Estate and close to the new US embassy, the Silverhurst residential park and the Westlake office precinct assured it of an upmarket clientele from day one," he said. "With residential land sales very much in demand - particularly at Mvelaprop's Stonehurst site - this whole area is set for further value increases and this site could not be better suited to a niche shopping centre."