Northgate, Brooklyn, Walmer Park to be extended

RICHWAY Retail Properties is undertaking a multimillion-rand extension of three major shopping centres.

These are Northgate Shopping Centre in Johannesburg, Brooklyn Mall in Pretoria and the Walmer Park Shopping complex in Port Elizabeth.

The R66m extension of Northgate in the developing area of Northriding, north of Johannesburg, will add 12236m² to the centre, with another 1451m² being upgraded. The centre will add a flagship Checkers Store and an entertainment hub anchored by a full-size ice rink and restaurant area.

Richway CEO Peter Blakenberg, optimistic in the wake of residential expansion in the area surrounding the centre, says Northgate will become the dominant regional centre in the northwest quadrant of Gauteng.

The project will be tackled in partnership with Sasol Pension Fund.

Leading property analyst James Templeton of Barnard Jacobs Mellett Securities says Northgate is the only shopping centre of any significant size in this region of Johannesburg, so it will attract shoppers. The Witwatersrand region has the highest personal disposable income per capita in the country.

'This means the opportunity for Northgate to attract these residents, especially with its new high-profile shopping and entertainment developments, must be significant,' he says.

Next on the list for a major facelift is Brooklyn Mall in Pretoria East. Richway plans to develop a further 5000m² of retail space there and is considering integrating the centre with a 300-room hotel owned by an international hotel chain.

Blakenberg says a market survey last year showed growing support and increased catchment trade at Brooklyn Mall. 'The study justified our investment by revealing that Brooklyn has become the shopping centre of choice for the affluent Pretoria shopper,' he says.

In Port Elizabeth, the upmarket Walmer Park shopping complex may also be expanded by a further 15000m², depending on the outcome of a density study, which looks at the number of people who visit the centre each month.

The company says the shopping centre enjoys virtually full retail occupancy and high customer support all year round. 'We are considering a major expansion that will bring in a new and exciting mix of fashion anchors and national retailers.'

The Richway group, which owns the retail complex, says the centre's refurbishment in 1996 and again in 1998 led to significant increases in customer traffic.

Blakenberg says retail space occupancy is in excess of 99%, with about 314000 customers visiting the centre each month. This translates to annual turnover of R10677/m².

During the past year Richway has added a number of A-grade shopping centres to its portfolio and disposed of others that did not meet the criteria.

Blakenberg is confident of achieving annual average rental growth of at least 9% in the group's core properties.

Barnard Jacobs Mellett Securities recently reported total annual returns on regional shopping centres at 12,9% for the 1994-99 period beating the average return on physical property performance by 5%.