Yet another township shopping mall is under construction in Port Elizabeth, following the national trend of investor confidence in previously disadvantaged areas.
The R15-million New Brighton Plaza is expected to be completed by November and will have Pick 'n Pay Family Store as its anchor tenant.
It is the fourth large retail development in the city's townships, following on the R32-million Motherwell shopping complex, built in 1997.
"There is a great need for retail developments, especially in New Brighton, where there has never been anything of this magnitude," said businessman Speedo Nondumo, who owns the site and the Pick 'n Pay franchise.
Nondumo said personal income flowing into New Brighton was estimated at between R13- million and R15-million a month.
"Of this amount, about 95% is spent in the suburbs or in town. It will benefit the people to spend this money in New Brighton as they will also save taxi and bus fare," he said.
The total floor space of the centre, in Ntshekisa Road, will be 3 625m² and will include 25 line shops. Nondumo said all the retail space had been taken.
The line shops include a pharmacy, doctor's surgery, electrical appliance store, hairdresser, a cellphone shop, ATMs, video shop, lawyer, clothing retailers, take-aways and an optometrist.
The plaza is expected to create between 100 and 150 jobs when it becomes operational.
Commercial and residential township developments have been buoyant in recent years, with the most recent First National Bank Property Barometer ranking townships as the top-performing property market nationwide. At 7,6, the township barometer was ahead of the overall market's 6,3.
However, township developments have experienced problems like armed robbery and vandalism, which increased the risk of investment.
In the case of Motherwell, the shopping centre was at times poorly tenanted and its viability was threatened when the anchor tenant had to close for some months in 1999 due to a strike.
Msele Property Brokers MD Don Berman, who markets the New Brighton Plaza development, is confident about the future of township developments.
"The risk is evening out. It is the same as anywhere in the suburbs," he said.
Msele already has a KwaZakhele shopping complex behind it and is planning another development in Zwide.
Berman said he was eyeing a possible Njoli Square office block.
Eastern Province Herald
Publisher: I-Net Bridge
Source: I-Net Bridge
