Despite interest rate hikes, developers continue to bank on the South African consumer’s unwavering pursuit of retail therapy. Neil Cloete, managing director of Grinaker-LTA’s building business unit, says that based on the firm’s current order book, the retail boom shows no sign of abating.

Grinaker-LTA Building, part of the JSE-listed Aveng Group, is busy with shopping centre contracts totalling more than R1 billion in KwaZulu-Natal alone. The contractor recently won the R73-million contract to build the first shopping centre in Umlazi’s “Y” section. The 9 900 m2 Philani Valley Shopping Centre comprises 10 single-storey blocks and parking. “We are working closely with the local community, and will be creating employment opportunities for Umlazi residents and businesses wherever possible,” Cloete comments.

This project, which is scheduled for completion in January 2008, follows Grinaker-LTA’s successful completion of Umlazi Mega City, which, with a 28 000 m2 shopping area, is the first substantial shopping centre in Umlazi.
 
On the opposite side of the city, the firm is undertaking a R163-million contract to extend the Gateway Theatre of Shopping. A new four-storey parkade is being built, and the mall is being extended by 13 000 m2. A tight programme will see this project completed in November this year.

The Pavilion is also being extended, with a new retail area and more parking. Grinaker-LTA Building, working in joint venture with Sivukile Contractors, 2C Contractors and C&R Contractors, is due to complete this R143-million contract in October.  Westwood Shopping Centre is a new addition to Westville’s retail offerings, and Grinaker-LTA kicked off its R390-million contract for this development last month (March 2007). A fast-track construction programme will see the mall completed by September 2008.

Still in Westville, Grinaker-LTA Building is undertaking a R23-million contract for extensions and alterations to the Village Mall shopping centre. The alterations will accommodate new tenants, the existing Pick ‘n Pay is being extended and a new car park is being built, Cloete says.

In Richards Bay, Grinaker-LTA is undertaking contracts totalling R233 million, for extensions and refurbishments at the Boardwalk Shopping Centre, to meet growing demand in the area for upmarket shopping facilities. More than 42 000 m2 of retail space is being added to the centre. This project, which is scheduled for completion in April 2008, includes of a major facelift for the 15-year-old centre, including new entrances, mall ceilings, floor tiles, public ablutions and shop fronts. In addition, some of the shops will undergo alterations while others will be relocated.