Liberty Properties (Libprop) is building a 39000m regional shopping centre, named Midlands Mall, for Pietermaritzburg and surrounding areas.

Unusually, the retail project seems to have the support of people living in the vicinity.

Take Mbongeni Ndimande, for example. It takes him 45 minutes to get to his nearest regional centre, the Pavilion, near Durban, every second week.

I like fashionable clothes and you just cant find them around here, says Ndimande.

These are words Libprop MD Jim McLean has heard before and hopes to continue hearing. The development is about two minutes drive from the N3 highway, easily diverting upcountry shoppers who may be on their way to the Pavilion.

Libprop is hoping demand will justify the eventual expansion of Midlands Mall to 58000m.

The development provides insight into Libprops investment strategy. It is one of the few institutions not to have reduced its property exposure and continues to invest in commercial property.

McLean says the property investments are mainly for the benefit of policyholders. Over a period of 10-15 years, property investments tend to yield better returns over equity.

Financial Mail