Craig Ewin, CEO of SA Corporate and head of listed real estate at Old Mutual Investment Group Property Investments, said partnering local interest groups, through ownership or community engagement, was fundamental to the fund’s approach to development of shopping facilities in under-serviced areas.

The fund has recently developed its second Umlazi investment, the R90 million Philani Valley Shopping Centre, to serve the needs of 4 000 Umlazi families beyond the catchments associated with Umlazi Mega City.  It also owns Dube Village Mall in Kwa Mashu, Durban, and the Hubyeni Shopping Centre, at Elim, Limpopo.

“The success of Umlazi Mega City in meeting the needs of resident’s can be gauged from the 17% growth in sales at the centre in December 2007 over the corresponding month in 2006,” said Ewin.

Retailers which include several national chains were achieving trading densities (sales per square metre) of more than R20 000 at the 35 000m² centre, which opened in April 2006.

These turnovers were achieved even though the series of interest rate hikes and the application of the National Credit Act was dampening consumer spending across the country, he said.

Akash Maharaj, the centre manager from Old Mutual Investment Group Property Investments, said another indicator of Umlazi Mega City’s growth was a request from the local taxi association for additional rank space.

“Our retailers are enjoying increased shopper traffic and more and more marketers are asking to run product promotions.”

At the agreement signing ceremony, Deputy Mayor of Ethekwini Logie Naidoo, said that this deal is a catalyst which could help Umlazi, the second biggest township in the country, to grow to be the largest township economically.