MEGACITY UPGRADE ENSURES CONTINUED MARKET DOMINANCE

Government is taking up space in Mmbabatho Mafikeng wherever the opportunity arises and the retail outlook is increasingly positive. 

One of the strongest features of the 46 846m² MegaCity Shopping Regional Complex in Mmbabatho Mafikeng relates to its position within the town’s government district, which includes judicial, provincial, national and local departments. In addition, it taps into this key driver by virtue of the fact that its East and West Gallery office towers link office workers directly to the centre. The towers include a number of businesses that strategically service the precinct in one way or another; anchor office tenants include the Department of Public Works, The Department of Finance and The Provincial Legislature.

In addition to the centre’s direct and indirect exposure to administrative services, the centre also benefits from its proximity to students and administrative staff from The University of the North West. Similarly, demand is bolstered by cross border spend emanating from Botswana based students and consumers located some 160 km away in Gaberone, where the case for purchasing goods and services in Mafikeng is promoted by the favourable exchange rate and reclaimable VAT benefits.

All of the new retail centres in Mafikeng – Station Boulevard, Market Square’, North West Mall and Game - have adapted to market conditions by positioning themselves against a predominant patronage  - be this an income group or proximity to passing trade. In the case of MegaCity, its niche is clearly the government and service sector on the primary demand side and fashion and furniture on the supply side - the center is strongly tenanted by Fashion retailers including Foschini, Markhams, Price & Pride, Pep, Jet, Topics, Milady’s, Total Sports Truworths, Woolworths and Edgars. Being the only regional center in the area, all key retail categories are represented.

The fact that more recently a green light for a new retail centre has occurred is vindication that Mafikeng is on the road to recovery and that investors are confident about the area. ‘They have sold the area to the advantage of Megacity and the timing of our refurbishment investment is perfect’ explains Dijalo’s Hosea Malekane.

Prompted by joint venture management and leasing partners JHI Real Estate and Dijalo, in April 2004 ahead of the centre’s R24 million refurbishment financed by the Public Investment Commissioner, the retail and office vacancy stood at 13% and 6% respectively. With a number of new and long lease renewals concluded there is now no available office space and the retail vacancy is under 4%, the bulk of which is actually not available as it is functionally used for the on-site contractors and for archiving purposes, explains Malekane. 

JHI Regional manager Sean Parsons indicates that the refurbishment is delayed to end November owing to the large consignment of tiles that needed to be imported in order to cover over 7000m². MegaCity center manager Ursula Groenewald of JHI Real Estate is very confident regarding the future of the center, and proof is in the pudding. ‘To date, a number of further fashion and food retailers are signed up’. She also points to secure tenancies from banks expanding their representation and a number of other potential opportunities including Fruit & Veg City which has indicated a strong interest in coming to Mega City as a result of inadequate current accommodation in Mafikeng at present.

A cinema complex comprising 4 theatres makes the centre the only movie-going destination in the area that further enhances its attractiveness to shoppers and tenants. Current movie owner ‘Stardust’ screens new releases at a fraction of the cost of the brand chains ‘and they are hard at work marketing the cinema and encouraging a culture of entertainment’ explains Groenewald. It has to be said though that the ‘upmarket’ and ‘café and pub’ type culture offering in the area is not strong and those seeking this are drawn to towns such as Lichtenburg; cases in point being Woolworths Food which now operates there, as well as Weissenhoff which diversified its offerings in Mafikeng to include take-aways.

The food court, being the major structural component of the current refurbishment, will complement the convenience offering at the centre and its proximity to the cinemas completes the entertainment value. Another coup will be the planned Medical Centre comprising a pharmacy, optometrist, dentist, two general practitioners, a physiotherapist and psychologist.

Owing to a hot micro climate and ‘indoor shopping’ culture, design compatibility is an important factor - local insight shows that shoppers tend to prefer closed air conditioned environments as opposed to open court outdoor environments. The MegaCity refurbishments are also set to dramatically ‘lighten’ up the shopping experience and improve the centre’s overall ambience.

Coupled to the fact that it has ample parking for 1296 cars and a taxi and bus rank to facilitate public transportation, the combined ‘revamped’ retail mix on offer at MegaCity places it in a very secure position.