Work has begun on a new Gonubie shopping centre, which is set to open in November next year.

The development represents a R150 million investment in Buffalo City's growing northern suburb.

"Growth in the area is positive and we are comfortable with this market," said developer Paul King after visiting the site this week.

The largest shop in the centre will be the Gonubie Spar, which will move from its current site, across Gonubie Main Road.

"We have outgrown our existing store, our customers are demanding more and we felt that this was the perfect time to move," said franchisee Gotz von Westernhagen.

The centre will offer around 13,000m? of retail space - about a third of what is proposed in each of four planned regional malls around Buffalo City.

King said that this new convenience centre would not be affected by the location of a large mall. "We are not really worried what happens," he said.

Von Westernhagen said that the local Spar franchise was lured to the smaller centre because it was the right size and a "sure thing".

"This is not a mega-mall. It has been three years in the planning and is now becoming a reality," he said.

The new centre will be almost entirely surrounded by residential space - a factor that made it especially attractive to Von Westernhagen.

He said the centre would ride a wave of prosperity started by Gonubie's growing residential property market.

On Monday, King would not reveal the identity of the centre's smaller tenants, but said the mix would offer "something different".

The suburb's ratepayers association has welcomed the new retail development.

Chairperson Charles Reynolds said no objections had been lodged against the development, which would boost the local economy and provide new services to the community.

But some residents have called for road infrastructure to be improved to support increased traffic volumes.

Reynolds said that residents were concerned that construction vehicles had already damaged the road leading to the site.

"Increasing traffic and the damage done to our roads are our only concern.

"We hope that the repairs will not have to be paid from ratepayers' pockets," he said.

The developer has contracted WBHO Construction to build the centre.

Contract manager Andrew Venter said the project would create around 400 jobs for artisans and builders living in Gonubie's Mzamomhle township.

The centre is the first investment in Buffalo City from King's Edrei Investments company.

"Things are happening in East London, we are comfortable with this market and will probably do more work here," King said.