Gateway Theatre of Shopping at Umhlanga is set for its second expansion within a year, with a R202 million extension of its south mall and parking facilities.

The Gateway project will bring the value of developments by Old Mutual Property Group in KwaZulu/Natal to almost R400 million, says Brent Wiltshire, the group’s business development executive.

“This total is likely to be boosted by the announcement of a further investment by Old Mutual in the Durban CBD. Details are now being finalised,” he says. The projects are part of Old Mutual Property Group’s national development pipeline of more than R2 billion.

The R202 million south mall expansion at Gateway will follow previous extensions to accommodate Edgars and Game and to provide larger stores for Woolworths and Truworths, says Mike Rodel, the group’s regional general manager for KwaZulu/Natal.

“The expansion is a response to ever-growing support of Gateway and the popularity of the north Durban node as a residential and business location,” he says. Adrian Raw, Gateway centre manager, says December 2006 turnover figures are being collected from retailers so that total sales growth can be determined.

“Based on November 2006 year-to-date statistics we are expecting total sales growth for 2006 to be more than 20% up on 2005. Foot-count was 10% up on 2005, with 23 million people visiting Gateway in 2006. Over 3 million people visited the centre in December alone, with a record attendance of 145 000 on  December 23.

“All smaller retailers we have spoken to have indicated improved sales this past December in comparison with 2005.

“The south mall extension of 7 900m² will be anchored by new concept stores for Incredible Connection and Dion. A new parking deck with 1 034 bays will be linked into the mall. The additional parking is required to ensure the complex retains its status as the premier retail destination in the province. “

It is expected that the retail expansion will be completed in November 2007, and the parking deck will be ready in 2008.

A current expansion at the northern end of Gateway will house a state-of-the-art Virgin Active health club for residents and workers in and around Umhlanga Ridge and the new town centre there.  In addition to the health club, Gateway has gained a Sportsman’s Warehouse store and Truworths has doubled its store.

Another Old Mutual Property Group project under way is a R102 million industrial park on a 7,4 ha site in Goodwood Road, Mahogany Ridge, the key Pinetown warehousing and light manufacturing address. The development, to be completed in the first half of 2007, is in response to a shortage of large industrial space in greater Durban.

ISSUED FOR Old Mutual Property Group
BY Michael Kerkhoff & Associates
INQUIRIES Mike Rodel 031-3661111/082-9043318
Mike Kerkhoff 021-4245280