Lenasia is set for a multimillion-rand makeover that investors hope will transform the bustling suburb into a commercial and cultural centre to rival Durban.
Plans include a R2.8-million upgrade of informal trading stalls; a revamp of the CBD; a new R62-million shopping centre, Signet Terrace; the opening of the R360-million Trade Route mall; and a R30-million cash injection by a Cape Town-based asset management company.
These initiatives are intended to breathe new life into the area, as well as bring back traditional shoppers and younger residents who have been lured to more sophisticated malls.
The project consultant for the econo- mic development unit in the Johannsburg city finance department, Lebo Ramorebuli, said a study last year showed that Lenasias economy was threatened by urban decay, crime and other factors.
Ramorebuli said the city was tackling petty crime and sprucing up the area with quick cosmetic improvements.
We hope to hold a foodfest in April. It is intended to be an annual event to attract traditional and new customers to Lenz, as well as enhance its unique cultural attributes and restore its image as a bustling shopping experience.
The report, compiled by African Development Economic Consultants, a private consultancy, said Lenasia was a shopping destination for clothing, especially for two niche markets, Indian ethnic wear and discount clothing.
Ramorebuli said: Durban is associ- ated with Indian culture and special- ities. W e want Lenz to have a similar appeal.
Gavin Tagg of Retail Network Services, a company working closely with Signet Terrace owner Daya Naidoo, said there was sufficient income and consumer spending in the Lenasia area to warrant the two new malls.
He said Signet, which opened in October last year, had a projected annual turnover of R300-million. Our figures are now exceeding that .
Wayne van der Vent, head of development funds for Futuregrowth Asset Management, has pumped R30-million into acquiring Lenasia Square and three other retail buildings.
Historically, CBDs not in traditional white areas have over the years been neglected, and Lenasia is a good example of that , he said, adding that areas like Rosebank and Randburg had enjoyed financing and growth.
These places are economic hubs in their own right. Not only does Lenz have a level of economic activity, but it services areas as far as Orange Farm, Soweto and Eldorado Park.
His plans included turning the square into an amphitheatre to accommodate the informal traders.
These traders lack organisation. At the moment you cannot walk through the CBD as they are all over.
Businessmen Ismail Valli and Sayed Mia, together with Investec Property Group, have invested R360-million in the Trade Route mall, which will open in March 2006. It will have more than 200 stores.
Their marketing and demographic studies have shown that 72% of Lenasias disposable income is being spent outside the area.
Said Mia: All this income is being spent in areas like Sandton and Rosebank, because Lenasia does not have proper stores to cater for them.
We will be targeting the middle and upper class.
Sunday Times
Publisher: Sunday Times
Source: Inet Bridge
