Malls prepare for better times

Johannesburg - Judging by the hundreds of millions retail centre owners are spending on the refurbishment of shopping malls, this sector might reckon an economic upturn is around the corner. Although retail spending is still under severe pressure, redevelopments are being driven mainly by demand from retailers looking for more space in preparation for a revitalised economy.

"Retailers are however wary of leasing in new centres, preferring to expand within the existing ones," said Stephan le Roux, regional director of retail at Growthpoint.

He said before Growthpoint would go ahead with redevelopment, at least 70% of the new space must be leased in advance. Richard O'Sullivan, leasing director for Retail Africa, a shopping-centre developer with assets of more than R3.5bn, said the time is ripe to think innovatively and to the future, especially since it can take one to two years to get a shopping centre off the ground.

The company is currently involved in various redevelopments, including the old Joshua Doore Centre in Welkom. This centre, which was standing empty, is now being converted at a cost of R470m into the brand new Goldfields Mall with 34 000m² of retail space. Lease agreements have already been signed with Checkers, Woolworths, Truworths as well as Foschini.

In Ballito on the North Coast of KwaZulu-Natal, Retail Africa is busy expanding the Ballito Junction centre in a joint venture with Absa.

The Clearwater Mall on the West Rand will also be enlarged to an enormous 87 500m² at a cost of R375m, and the expansion of the Woodlands Boulevard in Pretoria East to 71 000m² will cost R440m.

Clearwater will provide more space for Edgars, Woolworths and Stuttafords, while Game and Dis-Chem are newcomers. The Food Lover's Market will join other retailers at Woodlands Boulevard.

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