Construction of the new R450 million, 40,000m2 regional shopping centre on a 19 hectare site adjacent to The Ridge Casino in Emahlaleni (Witbank) has commenced. The mall is set to open in April 2007.

Highveld Mall is being developed by a consortium comprising Flanagan & Gerard Property Development and Investment and its 50% BEE partner Falcon Forest Trading.

Highveld Mall’s consortium of investors is led by Resilient Property Income Fund Limited (60% ownership), the JSE Limited listed property loan stock company, and includes Flanagan & Gerard (17,5%) and Mogwele Properties (12,5%). In addition there will be a 10% investment directly in the mall by BEE interests from the Highveld Mall region.

“Highveld Mall is consistent with Resilient’s strategy of investing in dominant retail in outlying areas,” explains Des de Beer, managing director of Resilient.

Located adjacent to the Ridge Casino, on President Avenue at its junction with the N4 highway, the mall will be fully air conditioned and enclosed. It will physically link in to The Ridge Casino with the area under roof totalling some 80,000m2. While physically linked, the two independently owned properties will operate and be managed separately.

“Highveld Mall will be the definitive entertainment and retail facility serving Witbank, Middelburg and the entire Highveld region of Mpumalanga and the eastern regions of Gauteng,” says Patrick Flanagan of Flanagan and Gerard.

Highveld Mall will be anchored by Edgars and other Edcon brands including Boardmans, CNA and Jet, as well as Woolworths and Pick ‘n Pay and will have a total of some 120 stores.

The entertainment element will be enhanced by Tsogo Sun through the expansion of its cinema complex which will double its number of seats. Between the mall and the casino, a number of new restaurants and fast food outlets will be added, thereby further increasing the entertainment offering.

“The development of Highveld Mall represents a significant new dimension in broad-based empowerment in that the 50% black partners have been actively involved in all aspects of the development,” says Sydney Malabie of Falcon Forest.

Falcon Forest is a wholly black-owned company which has been involved in all aspects of the development from conception, negotiating with municipality, community facilitation and funding arrangements. Furthermore it has ensured that local contractors are included in the construction of Highveld Mall by facilitating a joint venture with the main contractor WBHO.

The Highveld area will benefit from increased job creation with the developers committed to working with local contractors in as many instances as possible, plus an estimated 1,000 permanent jobs are expected to be created on completion. 

“We have benefited significantly from skills transfer,” explains Shongwe who believes that “Black ownership in the mall ensures long-term income from an asset with continually appreciating value establishing genuine wealth creation, not just for the present investors but for their future generations”.

Flanagan adds that the macro and micro economic fundamentals remain sound both property investment and for retailers and that forecasts indicate that the favourable climate should prevail for some time.

“The development of Highveld Mall has met with excellent national and local tenant support and will prove to be a good investment,” Flanagan points out.

“Consistent with our strategic thinking, Highveld Mall fulfils our primary development and investment criterion -- that of developing and investing in centres with trade areas that are largely ‘ringfenced’. We believe, and our research confirms, that Highveld Mall will dominate in the Emahlaleni / Middelburg / Eastern Highveld region,” explains Flanagan.

This means that further benefits for the Highveld region include the retention of the purchasing power which is currently lost to areas of Tshwane, Ekurhuleni and Jo’burg. At the same time it will attract shoppers from as far afield as Mozambique and Swaziland.

Witbank’s Executive Mayor, Clr Glory Dhlamini, comments that the building of this mall is the realisation of the Emalahleni Local Municipality motto, ‘Together in service delivery and development’. She praised the investors and developers for their bold initiative to come and invest in the community and committed to reciprocate this support without waiver.

“Highveld Mall offers the municipality, the investors and the community the opportunity to work together to improve the local economy. The mall will also bring a new experience for the shoppers in our district where they will be able to do shopping under one roof. It will enhance competitiveness and thus encourage sustainable growth that is inclusive,” says Dhlamini.

“The construction of this shopping centre will, among other things, help to reduce the levels of unemployment and therefore increase the number of the people who earn a means of livelihood,” Dhlamini points out.

This is in line with the municipality’s continuous efforts to refurbish, upgrade and expand its infrastructure so as to create a good environment for new investments that will in turn result in poverty reduction.

Chief operating officer of Tsogo Sun Gaming Rob Collins is enthusiastic about the development of Highveld Mall and believes it is great news for the whole region and particularly the node as retail is an integral part of any community. “Highveld Mall and The Ridge Casino will complement each other in many ways and both will gain positive spin offs from the adjoining location,” says Collins.

Earthworks for Highveld Mall commenced on 3 January 2006 when Diesel Power assumed occupation of the site. Contractors WBHO will move onto site in February and will use up some 13 months in building the mall to ensure that it will be completed for the planned grand opening in April 2007.

Developers have guaranteed Highveld Mall’s investors a 10% first year net yield.

~ Ends ~

Attached : External perspective of Highveld Mall, Emahleni (Witbank)

For further information, please contact:

Des de Beer

Resilient Property Income Fund Ltd

Tel. 011 881 2900

Cell 082 900 0377

or

Patrick Flanagan

Flanagan and Gerard Property Development and Investment

Tel  011 783 8449.

Cell: 083 265 5649

Or

Noeleen Bruton

Tsogo Sun

Tel. 011 510 7710

Or

Sandy Davey

Marketing Concepts

Tel. 011 783 0700

Cell 083 453 6668