In the race to build East London's first regional mall, one company has seemingly claimed victory, but this week a rival developer said the chequered flag was a long way off.
The Billion Group has invited politicians and business owners to a "soil-turning ceremony" at their site next to Hemingway's Casino early next month.
This follows company executive Warren Rovelli's December announcement that enough national retailers were "finalised and secured" to fill over half of the proposed shopping mall.
This included a Pick ?n Pay Hypermarket of 12000m² to "anchor" the project.
Developers usually need to confirm tenancy for at least three quarters of a mall's leasable space before financiers will make money available for construction.
At the time, Rovelli added that the company was in such a strong position that it was considering expanding the 60000m² mall it unveiled last year.
Rovelli said the R800 million development had been "jump-started" by agreements with the following tenants for shops of corresponding sizes:
- Pick ?n Pay Hyper ? 12000m²
- Edcon Group (various stores) ? 6250m²
- Mr Price Group (various stores) ? 6050m²
- Woolworths (Textile and Food) ? 5500m²
- Checkers ? 3000m²
- Pepkor Group (various stores) ? 2450m²
But on Tuesday a member of a competing project ? the "East Coast Mall" on Gonubie's Main Road ? said the mall race was far from over.
"It is early days yet," said Ronnie Sevitz of Investec's property investment arm, Growthpoint. This company has partnered with Cape-based developers, Thynk Property, to develop a 40000m² mall in East London's growing northern suburb.
Sevitz stated that it was "all systems go" for the project that was "well on track".
"We are in this for the long haul, and we are convinced that (our site) is the right place," he said.
He declined to comment on the Billion Group's upcoming announcement and its tenant agreements.
Daily Dispatch
Publisher: I-Net Bridge
Source: I-Net Bridge
