New value centre will boost Pinetown

Posted On Friday, 15 July 2005 02:00 Published by eProp Commercial Property News
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Brisk trading at Sanlam Centre has triggered a R50 million value centre development in Kings Road, Pinetown.  The adjacent shopping centres, on opposite sides of Kings Road, will have combined projected retail sales of more than R3 billion a year making them the fifth biggest shopping node in Durban.

Property-Housing-ResidentialPeter Sparks, managing director of S A Retail Properties which owns a significant share of both properties, says Sanlam Centre has performed particularly well since a major revamp and national retailers are recording the highest trading densities in their respective groups.  The centre is 100% let.

He says the shopping centres will be complementary and there will be scope for cost synergies in a joint management structure operated by Marriott Corporate Property.  Some retailers that are not represented in Sanlam Centre will take space in Kings Road Value Centre.  “With higher fuel costs in the offing people are likely to shop closer to home provided they have good facilities and a wide choice.  The new centre will further boost Pinetown as a shopping destination.”

The 8 300sqm value centre will be built on 12 commercial sites bought from Akal Properties.  Michael Tod Architects has designed a single storey structure with a modulated facade that provides a varied walkway scene for shoppers.  There will be parking for 585 cars.

The anchor tenant is expected to be a national group occupying 1 700sqm on a long lease.  Marriott Corporate Property reports strong support from national retailers and other big box users suited to the value centre concept.  More than 70% of the centre is already pre-let and national tenants are expected to occupy about 60% of the space when it opens in 2006.

Mr Sparks says Vukile Property Fund, which owns 50% of Sanlam Centre, will be offered an undivided 50% share of Kings Road.  An initial minimum yield of 11,25% is expected.

Last modified on Tuesday, 06 May 2014 17:12

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