Nick Wilson

LISTED property loan stock company iFour Properties has teamed up with a developer to build a R150m shopping centre in the Eastern Cape resort town of Jeffreys Bay.

The transaction was in line with its strategy of enlarging its property portfolio, particularly the retail component, without sacrificing the quality of the portfolio, iFour said.

The company said that at the same time it wanted to deliver sustainable growth in distributions to holders of its linked units.

“The lack of good-quality shopping centres in prominent retail nodes has created a demand for the development of new retail centres,” iFour said. Management saw value in Jeffreys Bay as it had a strong permanent residential base and a good holiday inflow.

MD James Nunes said the 16000m² community shopping centre called Jeffreys Bay Centre would be on the main road into the town.

Nunes said there was a Builders Express Centre on the shopping centre site.

“We have firm interest from two national grocery retailers for the balance (of the new space). We also have good demand from the major banks and national clothing retailers,” he said.

The company expects the centre to be completed in October next year, with the developer retaining a 30% interest in the shopping centre and iFour holding 70%.

“We are expecting it to be fully let on completion. We are also aiming for at least 70% national and major retailers and major franchises by value,” said Nunes.

Business Day