A NEW R70m convenience shopping centre is to open later this year in Somerset West to cater for a growing number of up-market residential developments in the town.

Called Waterstone Village, the 10000m² centre will serve newly emerging and existing suburbs close to the R44 between Stellenbosch and Strand. The centre is due to open in August on a 5ha site north of the N2 and bordered by the R44 and Main Road.

Colin Young, fund manager of Old Mutual’s South African-listed property funds, says there could be some risk to this development as the centre will be positioned between regional Somerset Mall and a new neighbourhood shopping centre in Stellenbosch owned by Martprop and SA Retail.

"The development makes sense, but there is risk. If they made it any bigger than 10000m², they would be taking on undue risk," he says.

According to developer Jaco Odendaal, the market the new centre is targeting is not to similar to that served by Somerset Mall. Odendaal says Waterstone Village is a convenience centre and would not be in competition with a regional mall like Somerset Mall.

He says the Martprop and SA Retail shopping centre in Stellenbosch is far from his centre, and the two would not compete. There is also more than enough vehicle traffic to justify the development of Waterstone Village, says Odendaal.

"We are on an intersection that carries 60000 cars a day," he says.

Adjacent to the centre are 650 new plots for residential development. The developer of the site sold all the plots in three weeks and has started earth works and servicing the site.

Odendaal says the tenant mix at Waterstone Village will provide for the "day-to-day" needs of consumers in the greater Somerset West and Strand area.

The food anchor tenants include Pick ’n Pay and Woolworths.

"Other stores will be occupied by Clicks and Clicks Pharmacy, House of Coffee, Cafe Dulce, Mr Video, a bookshop, an optometrist, fashion boutiques, hair salons, a jeweller and a home decor retailer," he says. Negotiations are also well advanced with two restaurant groups.

Odendaal says the site of the centre was bought from Heartland Properties, which is responsible for the continuing redevelopment of AECI land between Somerset West and Strand.

There will also be covered and open parking for 600 cars.