Transformation of this investment into a superior community shopping centre, anchored by a 2000m2 SuperSpar is due to be completed by August 2008, says Peter Sparks, executive director of SA Corporate.

He says the property is well located with good road access adjacent to the well established and rapidly developing Hammanskraal residential area north of the Pretoria CBD.

“This is an area with expanding housing developments and increasing disposable income.

Renbro will be a well anchored centre, with at least 75% national tenants committed on predominantly 5 year leases, with Spar on a 10 year lease.  Current tenant commitments exceed 80% which is very favourable considering the completed development opens in 11 months time.

The acquisition is consistent with one of the SA Corporate investment objectives which is to provide retail amenities in under-serviced areas provided they are commercially viable with favourable rental growth prospects.

We have done this successfully with the creation of Hubyeni Shopping Centre at Elim, Limpopo, and Umlazi Mega City in Durban which have similar tenant profiles to Renbro’s offering.”

Sparks says the centre, with 13 500m² retail, a small component of offices and 754 parking bays, is being developed over four phases. 

“This involves the building of a 300m² freestanding unit KFC, construction of a 2000m² supermarket for Spar, the construction of 33 shops, the refurbishment of existing buildings and the demolition of part of the existing buildings to make way for parking.

Additionally, the existing Total petrol filling station on the site will be redeveloped to include a convenience store.  A formal taxi rank will also be accommodated.”

The initial yield for the Renbro centre is projected to be 9,2%, says Sparks.

SA Corporate is managed by Old Mutual Investment Group Property Investments (Pty) Ltd