Nedbank funds purchase of rural shopping centres for Old Mutual

Posted On Wednesday, 26 November 2008 02:00 Published by
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Nedbank Corporate Property Finance has provided R160 million senior funding for the purchase of two retail shopping centres in Phuthaditjhaba in the Free State, on behalf of the IDEAS Fund, a policy product of Old Mutual

Phuthaditjhaba, ex-capital of the former Qwaqwa homeland, represents a large industrial area and hosts provincial, district and local municipalities, as well as serving as a regional node for the approximately 800 000 people living there.

The newly developed The Crescent Shopping Centre, measuring approximately 18 367m², is located in Phuthaditjhaba, 60km’s outside Harrismith in the Free State.  The centre is adjacent to the existing Setsing Plaza Shopping Centre, which is also owned by the IDEAS Fund.  The new centre complements the existing Setsing Plaza, but offers a superior shopping experience.

The Crescent’s tenants include PEP, Woolworths, Superspar, Ackermans, Milady’s, Truworths, Identity, Woolworths, Markhams and Nedbank.  The balance of the centre is made up of a number of local traders, which form an integral part of the centre.

The older Setsing Plaza Shopping Centre has been expanded over time to cater for the increasing demand for more stores as the population has grown. It comprises a gross lettable area of 25 963m², and includes tenants such as Edgars, Mr Price, Ackermans, Shoprite Checkers, King Pie, Pep, Capitec, Bradlows, Joshua Doore and KFC.  The balance of the centre is also made up of a number of local traders, and a substantial refurbishment of the centre is scheduled for 2009.

Brian Roberts, Divisional Director for the Gauteng division of Nedbank Corporate Property Finance said that the deal was favourable due to the centres’ excellent location and resulting scope for growth.  “The centres form a substantive part of the Phuthaditjhaba CBD, with a main taxi rank and bus terminus in immediate proximity. Based on this, they enjoy very high volumes of pedestrian and vehicular traffic.  This, combined with the fact that there are no comparable shopping nodes in the area, indicates that these particular retail centres can only go from strength to strength.”

Says Sean Friend, Portfolio Manager of the property portfolio of the IDEAS Fund said “These centres are a prime example of how private sector institutional investment can serve the twin purposes of social upliftment and investment. People tend to focus only on the jobs created.  Although the new centre created in excess of 300 permanent jobs, centres like these help to turn former townships into thriving cities. They act as a nucleus around which further development and social interaction can take place. Communities take pride in these centres. We had over seven thousand people at the opening launch. It is an outstanding example of beneficial direct investment in the economy.”

Last modified on Monday, 12 October 2015 16:44

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