Refurbs in full swing at ApexHi

Posted On Thursday, 17 April 2008 02:00 Published by eProp Commercial Property News
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With acquisition activity having slowed, ApexHi Properties Limited aims to invest R1-billion in refurbishment projects to grow income in its portfolio. Projects worth R570-million are already underway, and refurbishments for a further R357-million are currently in planning phases.

David RiceApexHi MD David Rice says the company is increasingly investing in refurbishments of existing buildings in the portfolio at returns of between 10% and 12,8%. “The projects are not only intended to maintain and improve the quality of the buildings, but are often undertaken to grow income,” he says.

The largest project by far is the R212,5-million redevelopment of Horizon View Shopping Centre, which has already been demolished to make way for a new convenience shopping centre called The Village @ Horizon. Negotiations with tenants are well underway, and the development is expected to yield a return on investment of 10%.

Golden Walk shopping centre is undergoing a R100-million revamp at a 12% yield. This includes the construction of an additional 12 000m2 of space, adding to either end of the existing shopping centre. Pick ‘n Pay has also commenced a R4,5-million upgrade to its store, and 86% of the new space has been pre-let, with the remaining 14% currently under negotiation. New store space is committed to Jet Mart, Mr Price for a mega store, a new Truworths Emporium, Ackermans, FNB, ABSA, Nandos Miladys, CNA, and several furniture retailers.

Rice says a number of the retail centres in the portfolio service the commuter market and efforts have been made to incorporate and accommodate taxi ranks within the developments.

“At Golden Walk, a taxi rank accommodating about 86 taxis will move on site by the end of May. This is expected to further boost the record footfalls the centre is currently experiencing, despite the construction activity,” says Rice.

Cleary Park in Port Elizabeth is also located opposite a major bus transport hub and already accommodates about 400 taxis on site. The R87,5-million refurbishment project which is about to commence at the centre will also include an upgrade of the taxi rank and the erection of hawker sites. ApexHi will commence construction of approximately 10,000m2 of additional space at Cleary Park in May 2008. Edgars is the anchor tenant of this new space, and the extension is approximately 50% prelet.

Berea Centre in Durban is about to complete its R53-million upgrade, with the final tenant, Woolworths, due to commence trading during April 2008. The centre is currently attracting about 517 000 shoppers per month.

Other projects already underway include the reconfiguration of Maynard Mall in Cape Town for R35-million, an internal revamp and remix of tenants at Ermelo Mall for R41-million, a refurbishment of Moreletta Plaza in Pretoria for R31,5-million and an additional 160 parking bays at Pine Parkade in Durban for R8,5-million, all yielding returns of between 11,5% and 12,8%.

A further R350-million worth of refurbishment projects are currently in planning stages and include Shoprite Parow in Cape Town, Game Centre in George, Middestad in Bloemfontein, four convenience centres in Soweto, Kopanong in Hammanskraal, Kempton Square Phase 2 in Kempton Park and Jewel City in the Johannesburg Inner City.

Publisher: eProp
Source: ApexHi

Last modified on Tuesday, 22 April 2014 08:49

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