Port Elizabeth property group Pambili and loan stock company Ifour have agreed to jointly finance the development of the Jeffreys Bay shopping centre due to open shortly.

The deal will see Ifour providing 70% of the capital and Pambili the remaining 30%.

Pambili owner Royden Thompson said the centre had been taken over at the start of building and a few changes would be made to the original plans for the centre.

The centre, which has about 16 000m? of total lettable space, is due for completion and opening in November next year.

The maximum cost of the development will not exceed R144-million, according to a Sens statement issued last week by JSE-listed Ifour.

Ifour said the investment was in line with its strategy of growing the size of its property portfolio.

"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 perceive value in Jeffreys Bay as it has a strong permanent residential base as well as a good holiday inflow from surrounding areas during the year.

"The annual growth rate of Jeffreys Bay has been in the region of 6%," Ifour said.

Thompson said negotiations were still under way with tenants for the centre and it would be "premature" to comment on confirmed tenants.

Pambili development has been involved in the development of several shopping centres across the country including the first phase of Protea Gardens, the Motherwell convenience centre and the Sebokeng Plaza.

It is also the development company behind the R100-million Blue Water Beach hotel under construction in Bluewater Bay.

Construction of the hotel, which Thompson said is "very much on track", has already started.

Thompson said building had already reached the third floor of rooms. The hotel was planned as a five-star hotel, but would still need to be graded once complete.

The completion date has been set for August next year.

Among its features, the 60-room boutique hotel will include a 300-seat conference centre, a health spa, gym, rooftop bar and swimming pool.

The Herald