By Nicola Jenvey

The R345m Westwood shopping centre, under construction on a site perched between two freeways in Westville, is to open next September as Retail Africa's second foray into KwaZulu-Natal.

Established in 1999, the property development company has developed, refurbished and leased a number of shopping centeres in Gauteng and Cape Town, including Honeydew Village shopping centre, Northcliff Square shopping centre in Johannesburg and Steenberg Village shopping centre.

It is involved in 19 projects nationally, ranging from development and refurbishment to leasing of retail centres and office parks.

Westwood consists of 35000m2 of retail space, of which 75% will be national retailers and anchored by Pick 'n Pay, Woolworths, Edgars, Truworths and the Foschini and Mr Price groups.

Earthworks on the small regional centre started last November and on completion the project will compete with several other similar sized centres within a 5km radius of Westville, as well as The Pavilion, a large regional centre.

Earlier this year, Retail Africa developed Hillcrest Boulevard in the residential suburb that has experienced explosive growth in the past decade. The proliferation of gated community and golf course developments has spurred the construction of several shopping and lifestyle complexes in Hillcrest and the adjacent Waterfall, Bothas Hill and Kloof.

Anchored by Shoprite Checkers and Woolworths, the 19000m2 Hillcrest Boulevard opened in March with a mix of convenience-related tenants including fast-food outlets, restaurants and essential services.

Retail Africa chairman Angus Mackay said that, as one of the country's largest shopping centre developers, the directors took a long-term view on each location. The company owned the bulk of the centres it developed, often in joint ventures, with extensive research ahead of the development.

"The South African retail market has been in a sustained growth phase, enabling the construction of numerous centres, and the KwaZulu-Natal market has been no different," he said. The scarcity of suitable space, rather than lower consumer demand, had prohibited Retail Africa from previously entering the market.

Mackay anticipated the recent spate of interest rate hikes, coupled with the promulgation of the National Credit Act, to translate into a slowdown in spending and thus a softening in retailer demand for more space.

However, the company was aiming for a geographical spread of retail properties located in growth nodes and would continue seeking appropriate sites across KwaZulu Natal in the light of the relatively high exposure in Gauteng and Western Cape.

Business Day

Publisher: I-Net Bridge
Source: I-Net Bridge