R800 Million Regional Retail Centre In East London to be built

Billion Property Group To Build An R800 Million Regional Retail Centre In East London  -  The Hemingways Mall

Hotel & Gaming Group Tsogo Sun has given the go-ahead for the sale of the 7ha undeveloped site adjacent to all existing Hemingways Casoni to Billion Property Group, for the development of a super regional up-market shopping centre of some 60 000m² GLA at the Casino site in East London.  This follows a bidding process to Tsogo Sun (the current land owners) which took some 7 months of evaluation by Tsogo Sun and contesting between Billion Property Group and other developers that commenced in November 2005.  This is due to the prime catchment area of the site for the city suburbs, secondary and tertiary markets.

The site is situated alongside the N2 (between King Williams Town & Umtata ) and connects directly with Western Avenue road to the CBD and Airport.

Billion Property Group aims to develop an exclusive flagship regional centre for East London offering:

- The ultimate shopping experience through a wide variety of shopping  and lifestyle offerings, ranging from high end prime to value fashion, food, home, top restaurants and fast food  to entertainment for all age groups

- An optimal tenant mix offering a great lifestyle atmosphere; and

- Ample and secure built parking under the centre on 3 parking levels at 6 bays per 100m² of some additional built area of 120 000m²

- A massive road infrastructure improvement on the on and off ramps to the N2, Western Avenue road and bridge widening, and a new boulevard above the centre

The ground floor retail will directly link to the Casino through up market restaurants and entertainment node.
The entertainment node forms part of the link to the Casino. It will cater for all age groups from toddlers to teenagers and adults. The mix will includes a kids play and learning centre, Skateboard Park, seasonal aerojump, Ten Pin Bowling, Theatre and much more.
Included in the tenant mix for the ground floor will be a strong representation of banks, home ware, service related tenants, florists, optometrists, coffee shops, restaurants, theatre and a          fast food court.  The home ware tenants will be strongly represented on the same floor with the likes of Mr. Price Home, Boardmans and Home Comfort.  Pick ‘n Pay will be the food anchor for the ground floor and will occupy some 6 000m² retail space. 
On the 1st floor the tenant mix will consist of high-end premium through to value fashion, jewellery and sunglass retailers, shoe outlets, with some coffee shops throughout.  National Fashion tenants will Anchor this floor.  This mix will include tenants such as the Edcon Group, Truworths Group, Mr. Price Group, Pepkor Group and other national retailers.

This site:
1. enjoys convenient and easy access from the city suburbs, airport etc.,
2. visibility of some 600m along the N2 highway with direct off and on ramps,
3. has business and retail rights, and
4. is already an established entertainment destination in the region.

There has been huge interest expressed from national, regional and local retailers that exceeded the intended space of 60 000m² GLA and ongoing leasing for 70% of the space is to complete by mid August ’06.

Various retail research and surveys have indicated the site as the best location for a scheme of this nature and size.

The centre will create some estimated 3 000 permanent and temporary jobs during construction and some 2 000 jobs after construction.

Tsogo Sun has signed a sale and development agreement with Billion Property Group and Rand Merchant Bank is financing the scheme. The Billion Property Group has incorporated a 10% shareholding for local empowerment shareholders into the scheme.

Leasing is being handled by Billion Property Services at 011 884 5335, attention Natasja Voget or at natasja@billiongroup.co.za.

Planned construction is to commence 1 September 2006 with opening planned for end October 2008, a 24 month process.

Source: eProp - www.eprop.co.za