The company planning a R500m shopping mall outside Gonubie, East London, has partnered with the developers and owners of the city's biggest open-air mall, Retail Park.

Thynk Property Partners, who last year announced plans for a 55000m² mall outside Gonubie, have formed a joint venture with Investec Property Group (IPG) and Growthpoint Properties.

The deal hands a majority stake of the finished property to Growthpoint, the owners of Beacon Bay Retail Park and one of South Africa's largest property investment companies, with with more than R14 billion in assets.

Growthpoint fund manager Stephan Le Roux said the deal would allow the company to reposition Retail Park and the new East Coast Mall to address different needs.

Retail Park would become a "value-centre", while the the new double-storey, fully enclosed East Coast Mall would be a high-end regional shopping centre.

Le Roux said the Gonubie development was the best of the three shopping centres being proposed in East London. The others are situated opposite Retail Park and at the Hemingway's Casino site.

IPG's Ronnie Sevitz said it made sense for Growthpoint to secure its position in an area in which it was already a stakeholder.

"They not only bring sustainability to the area, but stability as well. They will not be competing but complementing the region," he said.

Sevitz said the deal would result in a huge amount of market knowledge being shared between the three partners.

IPG, who were the developers of Retail Park, will act as developers.

The company has just completed a 50000m² retail centre in Lenasia, Gauteng and is about to "go to ground" on a 44000m² centre in Woodmead, anchored by a 15000m² Pick 'n Pay Hypermarket.

The original plans for the East Coast Mall have been delayed by a year, with completion now expected in late 2008, or early the next year.

Thynk chief executive Leon Quenet said the delays were caused by the large number of mooted residential developments in the Gonubie area, combined with the long process for securing bulk infrastructure like electricity, sewerage and roads.

IPG and Thynk will own the remainder of the property after Growthpoint's majority share is taken. Quenet said both companies saw the development as a long-term investment.

Previously Quenet said it was envisaged that the development would include two supermarket chains, three department stores and well-known clothing retailers.

"Incorporated into the design is an entertainment element comprising cinemas, fast-food restaurants and an open-air entertainment area."

Quenet said the mall would be about 500 metres from the Gonubie N2 interchange and this would allow for easy access to and from the mall.

"This development will secure East Coast Mall as the only true regional shopping centre in the greater Buffalo City," he said.

Daily Dispatch
Publisher: I-Net Bridge
Source: I-Net Bridge