Futuregrowth fund to develop 10 more rural and township malls

Posted On Tuesday, 08 March 2005 02:00 Published by eProp Commercial Property News
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Futuregrowth has a further 10 centres in the pipeline.

Property-Housing-ResidentialCape Town - The Futuregrowth Community Property Fund, which focuses on the development of and investment in shopping centres in rural areas and townships, has a further 10 centres in the pipeline.

Six of these could be completed by the end of next year.

Wayne van der Vent, a director of Futuregrowth Asset Management, said yesterday that these were planned for Limpopo and Mpumalanga, as well as the former Transkei area.

He said this would probably increase the fund's size from the current 12 properties totalling R350 million in value to R550 million by the end of 2006.

"Retail developments in townships have gathered speed in recent years and this trend is expected to continue for at least the next five years, as there is still a huge backlog relative to the buying power in these areas."

He expected growing private investment in the townships, as many of the traditional retailing areas were becoming saturated.

Futuregrowth is involved in a R450 million retail and housing development in the Khayelitsha business district outside Cape Town, where it is developing a 17 500m2 shopping centre.

On completion, 70 percent of the mall will be leased to national tenants, including two food anchors, and clothing, banking and services groups.

Other than the shopping centre, 1 200 houses, an office block for the municipality and a service station will also be erected.

The project is the first development of its kind in an underdeveloped metropolitan area. It is a collaborative venture between the City of Cape Town, Rand Merchant Bank (RMB) and the Khayelitsha community.

RMB has underwritten private finance of R300 million, while the government has committed R150 million for infrastructure.

Dirk Prinsloo of research group Urban Studies said many new centres were being erected in townships, although they were mostly of a smaller size, varying between 12 000m2 and 20 000m2.

He said location was crucial with shopping centres in the townships, as most people did not have their own transport.

Futuregrowth is an empowerment company, with Wipcapital, the financial services subsidiary of women's empowerment group Wiphold, holding 40 percent.

Last modified on Monday, 12 May 2014 15:27

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