Construction World September 2015

PROPERTY

In October 2014 Emira acquired a 60% undivided share in Ben Fleur Boulevard, a neighbourhood shopping centre in Witbank (Emalahleni), Mpumalanga, which serves a rapidly growing, upmarket suburb. It benefits from an excellent retail mix, anchored by Checkers and Woolworths, with strong lease covenants from its 79% national retailer base. The R93,35-million acquisition includes the existing centre of 8 573 m 2 , as well as a 60% share in two potential future phases, which could eventually see the centre fully developed to in excess of 15 000 m². In November 2014, the newly constructedWoolworths began trading, so successfully that they exercised their option to expand their store as early as May 2015. The second phase includes the expansion of Woolworths at the centre, as well as more fashion retailers being introduced. James Templeton, CEO of Emira Property Fund, comments: “This earn- ings enhancing transaction, which has a projected blended yield of 9,1%, supports Emira’s objective to increase its exposure to quality retail property with higher values. Its strong retailers also improve Emira’s tenant profile. Ben Fleur Boulevard is in an exciting growth area, which supports above average income growth in the medium term.” Emira is also investing a combined R41,4-million in the redevelopment, refurbishment and conversion of two of its existing B-grade office buildings into retail showroom premises. The redeveloped Sandgate Park and CRB House, in Kramerville, Sandton – which will now be collectively known as Kramerville Corner – have already started attracting prominent names in the design and décor industry who are not currently represented in the node. This investment enhances a long term asset for Emira in a prime location in a sought-after node, at the same time improving the quality of its asset base and boosting its retail exposure. An incremental 991 m² of available bulk will be utilised for a brand new two-level showroom for Bakos Brothers who have committed to a five year lease. Together these two buildings will grow to around 18 500 m 2 . Both build- ings will receive new shopfronts, walkways and entrance features in line with the rejuvenation that has become a feature of Kramerville. STRENGTHING ITS PORTFOLIO Emira Property Fund is enhancing its portfolio of assets by investing in strategic acquisitions, redevelopments and expansions to its properties, which increase both the quality of its portfolio and its exposure to the retail sector. > Less than a year since opening, Heidelberg Mall in southern Gauteng, has swiftly established favourable shopping patterns and behaviour from a growing customer base. This underscores Heidelberg as a key regional node next to the N3, SA’s busiest national highway which connects Johannesburg and Durban. Research undertaken by Urban Studies has revealed some exciting insights about Heidelberg Mall and its shoppers, showing that it has rapidly grown in popularity, and is also attracting highly desirable consumers with strong spending power, since opening in October 2014. While Heidelberg Mall broadly appeals to the LSM 6 to LSM 10+ profile, it is dominated by an upper-income shoppers withmost of its customers falling in the LSM 9 band. >

ABOVE: Ben Fleur Boulevard, a neighbourhood shopping centre in Witbank (Emalahleni), Mpumalanga. BELOW: An artist’s impression of Kramerville Corner.

The upgrades will significantly increase the buildings’ retail and showroom space and reduce office space to 14% of gross lettable area. The Kramerville Corner redevelopment is anticipated to be complete in February 2016. Templeton says:“The improvements and changes to Kramerville Corner will support its strong market position and ensure it remains competitive in the marketplace and attractive to businesses.” About Emira Emira is a JSE-listed SA REIT (real estate investment trust) invested in a quality diversified portfolio of office, retail and industrial properties. Its assets comprise 148 properties valued at R12,5-billion. Emira is also internationally diversified through its direct interest in ASX-listed Growthpoint Properties Australia (GOZ), valued over R700-million, with Emira’s total assets now at R13,5-billion. Importance of research “This kind of research is important to us,” explains Michelle Amorim, general manager of Heidelberg Mall. “With the insight we gain from the customer feedback obtained in our research, we are able to make the Heidelberg Mall shopping experience even better for them.” The 35 000 m 2 regional shopping centre features 120 retail stores, restaurants and services. Developed at a cost of R600-million by Flanagan & Gerard Property Development and Investment in a joint venture with Dissilio Investments, Heidelberg Mall is home to many big-name national retailers. It is anchored by Game, Checkers, Woolworths, Edgars and Dis-Chem. The research on Heidelberg Mall reveals some 65% of shoppers come from Heidelberg and Ratanda, while a further 4% of its shoppers live on farms around Heidelberg. Showing real regional attraction, especially for consumers from areas to its east, 31% of its support comes from people living in surrounding towns, most notably Nigel and Balfour. It also has noteworthy appeal to shoppers from Vosloorus, Grootvlei and Meyerton. Over half of the mall’s shoppers travel for 10 minutes or less to the centre, showing strong support from its primary trade area. A 10 to 20-minute drive is typical for an established regional mall, and 31% of Heidelberg Mall’s shoppers spend this amount of time to reach the centre. In addition, 7% of its shoppers drive for longer than 30 minutes to visit the centre. Heidelberg Mall has settled very quickly with loyal, local support. Some 63% of its shoppers visit the centre weekly. This already compares favourably with other small regional shopping centres in South Africa. “This is very impressive, considering the centre had only been opened five months when the research was undertaken,” notes Amorim.

22

HEIDELBERG MALL INCREASINGLY POPULAR

I

CONSTRUCTION WORLD SEPTEMBER 2015