A R67 million expansion is under way at Gateway Theatre of Shopping to house a state-of-the-art health club for residents and workers in the fast-growing north Durban node around Umhlanga Ridge and the new town centre there.

The expansion at Gateway is part of a pipeline of development projects and refurbishments worth more than R600 million that are being undertaken by Old Mutual Property Group, says Brent Wiltshire, business development executive of the group.

He says the group‘s pipeline is set to grow even further as assessments and concepts are finalised on a mix of commercial, industrial and residential projects throughout South Africa, including KwaZulu/Natal.

“The Gateway expansion follows a series of extensions since the R1,4 billion centre opened in September 2001, in particular to house large national chain stores,” he says.

“Gateway has been a catalyst for development in the Umhlanga area since the new millennium. However, till now, a health club, notably with national reciprocity, has been a missing element in the mix of retail, commercial, residential and hotel projects that have helped to establish the town centre. “

Mike Rodel, regional general manager of Old Mutual Property Group, says a Virgin Active health club will open at Gateway in the first quarter of 2007. Virgin Active has established 80 clubs nationwide with a total of 450 000 members.

“The club will be at the northern end of the complex and will offer plenty of parking for members. It will be built on two levels over 4 724m² through a conversion of existing parking decks. “

Rodel says the addition of the Virgin Active club will boost visitor flow at Gateway.

“Gateway has a broad appeal because of its retailer mix and entertainment offering and enjoys the largest number of visitors to any centre managed by Old Mutual Property Group. The 2005 foot count was 21 million, 19% up on 2004, and included 2,9 million in December, a 10% gain.”

Rodel says Gateway met Virgin Active’s requirements for its club sites to have complimentary facilities and to be large enough to accommodate the group’s new concepts.  He expects an announcement on the concepts for the Gateway club to be made by Virgin Active shortly.

Ends

ISSUED FOR Old Mutual Property Group

BY Michael Kerkhoff & Associates

INQUIRIES  Brent Wiltshire 021-530-4500
           Mike Rodel 031-304-3581
           Mike Kerkhoff 021-424-5280