Job creation is just one part of the telling impact property development can have on economies in outlying areas, says Peter Sparks, managing director of the owners, SA Retail Properties Ltd which will soon merge with SA Corporate Real Estate Fund to form a R8 billion fund.  Both funds are managed by Old Mutual Investment Group Property Investments.

“A total of 635 local people were employed during the construction of the R86 million centre, and 63% of the site workers were women,“ says Sparks. “ In addition, women employed by Mashamba Thondoni Potters hand-made 10 000 tiles for the centre.  Local women were also assisted in setting up a cleaning company that has been contracted to service the centre.  A local security company is manning the control centre and providing patrol guards.“

Sparks says that while national tenants occupy most of the centre, 36 of the 50 shops there are tenanted by local residents, with more residents operating the 50 permanent hawkers’ stalls.

He says that the work opportunities in the building phase were in line with research indicating an average of six to eight construction jobs created for every R1 million spent on construction; and that a ratio of 1:2 can be applied to jobs created in the building supply/support industry.

“That is, for every 100 jobs on a building site, another 200 are engaged in supply off site. Some researchers indicate this ratio can be as high as 1:7”.

The Hubyeni development, is among nine turnkey shopping centres anchored by Spar which the fund may acquire, subject to approvals, for R700 million over the next three years from Kerr Developments of Pretoria.

“The developer also built two soccer fields, a change room and toilet block for the school,” says Sparks  “In addition a library will be built, with Exclusive Books supplying all the books and systems required.“

Development of the Hubyeni centre follows a demographic analysis which strongly supported a centre to satisfy an area with a total annual spend of more than R200 million.  A Superspar and Tops of 2 500m² on a 10-year lease anchor the 12 684m² centre, which will provide an initial yield of 9,5%.  On the opening day, March 30, 2007, Spar notched up a record breaking R1m turnover, which is truly exceptional.

SA Retail last year added Dube Village Mall in Kwa-Mashu, Durban  and Umlazi Mega City, a R165 million joint development with SA Corporate Real Estate Fund, also in Durban, to its portfolio.