Development

Despite Mozambique’s economic challenges, the Pemba Retail Centre is finally opening its doors to the public this week, marking a new way of shopping for the people of Pemba, Mozambique. Atterbury’s Gerhard van der Westhuizen shares some background intel.

When is the official opening?
In line with the Atterbury tradition, it happens on the last Thursday of the month: 29 June.

When work started on the development there were no formal retail options to speak of in Pemba, bar tiny supermarkets, with most buying and selling happening by the side of the road or at informal markets. How has Pemba Retail Centre been received in this landscape?
The local and broader community is extremely excited about the opening of this centre. Not only will the they be able to do all their grocery shopping at one location, they will also have the advantage of buying goods at more reasonable prices. The centre will benefit all income groups.

What has been the main challenges in completing a retail development in such a rather underserviced area?
The letting of the premises presented the main challenge in Pemba, because it takes a lot of effort to get the local tenants to commit. This is due to two reasons: firstly the economic crisis in Mozambique which goes hand in hand with the depreciation of its currency against the US dollar. We finance and develop the shopping centre in USD, which means that tenants pay rentals in dollars too. The metical has halved in value against the dollar since 2014 (30 mets to the dollar then to 60 mets to the dollar now). Tenants do business in metical, so they have to double their turnover to afford the same rentals as three years ago… The second reason is that we face an historic bias – tenants are reluctant to commit to any leases upfront due to the historic nondelivery by developers in the country. They want to see the completed shopping centre before they commit.

What will the occupancy rate be when the official opening takes place?
On opening day, Thursday 29 June, three tenants will be open for business: Shoprite, OK Furniture and Pep. These stores account for about 60 percent of the total space available in the centre. As mentioned earlier, now that the centre is finished and has become a tangible reality, we’re seeing interest from prospective tenants. We believe we will be fully let by December this year.

So aside from the confirmed tenants, what is the capacity? How many stores are there?
We have 20 stores in total and are currently in advanced negotiations with 10 exciting tenants.

What is being planned for the official opening? Has there been much anticipation from the local community?
Everything is steaming ahead for the opening on Thursday. The President of Mozambique will formally inaugurate the centre on Wednesday 28 June, and then it will be open to the public on the following day.

And going forward? What is Atterbury’s future involvement with Pemba Retail Centre, and is there a time frame for the planned office development?
Atterbury Asset Management (SA) is responsible for the wellbeing of the centre from the opening date; and is building a relationship with Ilulu, a local property management and financial services company who will be managing our portfolion in Mozambique, including Pemba Retail Centre. In terms of the office development, we trust that this will happen in the near future.

While the development of Richmond Park, in Cape Town, by Atterbury and its partners is steaming ahead, the community development and support programme is also delivering its first results, thanks to the efforts of the ace team of the Richmond Park Treasury Trust (CPTT), including trustee Charles Marthinussen, who is also the principal of Atlantis Secondary School, administrator Jolene van Schalkwyk and Zahn Hulme. We got the lowdown on the achievements so far from Charles and Atterbury’s Zahn Hulme, who is also a trustee and advisor to the Richmond Park Treasury Trust.

Charles, as one of the highly respected local high school principals for more than 20 years, you know the Atlantis community and potential students well and are instrumental in making recommendations for the bursary programme. How are the bursary recipients selected?
We’re committed to ensuring that deserving children from the Richmond Park community have access to training and education commensurate with their matric results and ability. To qualify for a bursary to study at a college or university, a student has to have earned a National Diploma pass or a Bachelors pass in matric. Young people who don’t qualify for university or college entry will be offered the opportunity to enter the short-course and skills-development programmes. We are committed to do our utmost to secure the necessary funds for the future of Richmond Park’s youth, and we rely on the community to adhere to our processes and the criteria to ensure that this rolls out effectively.

What do you believe is the value of this bursary programme for the community?
For me this really is a project of hope and opportunity. It’s so important that Richmond Park’s youth embrace the opportunity and recognise this chance to invest in their future. From our side we’re committed to facilitate access to tertiary institutions in the Western Cape and elsewhere in the country, as long as the potential bursary students ensure they work hard to meet those institutions’ criteria for study.

Zahn, you recently spent time with the first group of bursary students from Atlantis. How have they settled in?
The Richmond Park Treasury Trust funded nine students last year, as well as three short courses. Three of the students are aiming to become teachers, there is also a journalism student (the dream is to involve her in documenting the Richmond Park story), a law student and a graphic-design student; plus one each studying dental technology, travel and tourism, and clothing technology. For the short courses we try to specifically support the local West Coast College, and funded welding, PA and engineering courses. The majority of the students settled in well and passed all their subjects in 2016. As we have to ensure the longevity and sustainability of our available resources, we have given specific guidelines on candidates to be funded through the Trust. It is important to mention that bursary loans are repayable on an interest free basis by our students as we want to ensure longevity of the Trust to be able to assist future generations.

How many new students from the community are there this year?
We brought nine new students on board in 2017. Enzio Ryan is our first Matie, at the University of Stellenbosch, and he is studying law. Then we have two students at Unisa, studying teaching and a BA respectively; two at the University of the Western Cape, doing a BCom and a post-graduate qualification respectively; and another at Damelin, who is studying industrial psychology. We’re also funding a number of short courses to enable students to find jobs and support their families, such as installing fibre-optic cables and operating overhead cranes.

Can you share one story of a student who has really made an excellent go of it?
We can do better than one! Two students achieved 70 percent or more: Melory Beziek averaged 74 percent at Northlink College studying for her qualification in clothing production; and Saskia Brown had a 70 percent average in her first year of her diploma in Media and Graphic design at Damelin. Three more exceeded 60 percent: Donelle Wicomb got 64 percent in her second year of teacher training at Unisa; Rozanne Hendricks, 64 percent in her first year studying teaching, also at Unisa, and Rushmiyah Simons, 63 percent studying for a BEd at Cape Town University of Technology. We are very proud of these hardworking young women.

 If a benefactor wants to sponsor a student from the community, how would they go about it?
While the Richmond Park Treasury Trust is still in the process of obtaining its PBO status, the best way to go about it is to make a donation to the Atterbury Trust and communicate the intention to zahn@atterbury.co.za. That way the donor gets the tax benefit of their donation. We will allocate the funds to the Richmond Park Treasury Trust in the interim.

RICHMOND PARK TREASURY TRUST BURSARY REQUIREMENTS

• Bursaries will only be awarded for studies at government institutions for qualifications that are SAQA registered.
• Bursaries are intended for students who will study towards a professional qualification that will render them employable on the Richmond Park project (for example quantity surveyors, engineers, chartered accountants, and degrees such as BSc Project Management and other property-development-related qualifications) or equip them to serve the Richmond Park community as, for example, teachers, medical personnel and so on
• The completed bursary loan application must be accompanied by the following:
• Proof that the applicant qualifies with the entry requirement of the relevant institution.
• Proof that application forms were submitted to the university.
• Proof of preliminary acceptance at the university.
• Proof that NSFAS submission for funding has been submitted.
• Proof of household income (payslips of parents).

 For inquiries about the bursary programme, contact Jolene van Schalkwyk on treasury@richmondparkcpa.co.za or 021 5720163

The arrival of a top-class shopping centre is always a cause for celebration, and the citizens of Kumasi arrived in their thousands to be among the first to cross the threshold into Atterbury’s newest development in Ghana. An estimated 61 000 shoppers flocked to the opening of Kumasi City Mall, surpassing all expectations. Atterbury’s man on the ground, Roux Gerber, tells us more.

You must be thrilled at the turnout!
The opening was amazing and the turnout was really the cherry on the cake. We expected the first mall in Kumasi to attract a large number of people, but the Ghanaians flocking to Kumasi City Mall on the opening weekend exceeded our expectations with positive feedback from very happy tenants.

Who were the guests of honour at the opening?
The tenants were the guests of honour on opening day. The night before we had a celebration where the development managers, Atterbury Property, and owners, thanked everyone involved in the project for their part in the project: developers, shareholders, contractors, consultants, suppliers and tenants were present at this event. The asset management and development teams are planning a formal inauguration function in May to which various Ghanaian dignitaries and royalty will be invited.

What percentage of the tenants were ready on opening day?
On the 20^th 42 percent of them were ready, and by 27 April, that number stood at 70 percent.

Who was literally the last one to add a finishing touch in time for the opening?
A few smaller line shops were installing signage and final finishes till minutes before the cut-off date prior to opening!

Were there any last-minute dramas that had to be handled?
Luckily we had the “normal opening-day rainstorm” a day before rather than on the actual day! It resulted in extra cleaning activities that were completed in shifts for longer than 24 hours prior to opening. The drive from tenants to open on time created bottlenecks in delivery and one tenant took the initiative to drive his small delivery van on the polished mall floor… amicably resolved in the end!

What was the highlight of the opening?
It had to be the faces of all the very happy tenants! Asset management arranged a splendid opening-day programme with festivities in the mall. Kumasi finally has “A PLACE TO BE!”

Do you have tenant feedback yet in terms of how sales went over the opening weekend?
Game reported the best opening weekend in West Africa so far and every tenant reported sales above expectation, so everyone is happy.

Any attendance stats yet for opening weekend?
Over the first four days around 230 000 visitors were recorded – a daily average of around 58 000 people…

How many cars came into the parking garage, for instance?
Kumasi City Mall has more than 750 parking bays; a combination of open and basement parking, which handled the visitors and traffic sufficiently.

What was the best feedback received?
I’m not allowed to use strong language, but let’s just say that various tenants expressed the turnout as “overwhelmingly” amazing!

WHAT SHOPPERS HAVE TO SAY ON FACEBOOK:

Emmanuel Abanti: A fantastic mall and it’s gonna revolutionalize shopping in Kumasi. Kudos to the people behind this grandiose project.

Nathaniel Osei Kwakye: It’s the place to be. You can get all your needs for very competitive prices. The architecture is also top notch with state of the art technology.

Adjei Kwarteng Collins: We are very happy to have such an ultra-modern mall. It’s the best among the rest. #MakeKumasiGreatAgain.

Kwaku Ofosu: World-class… The parking lot looks just like, or even better than most parking lots I’ve seen in Europe and the United States of America… Biggest mall I’ve seen in a long time…. beautiful inside out… This is a place you need not just see it on the TV, it’s a must visit place….

Oseibonsu Prince: Just love the Kumasi City Mall … exciting ambience and shopping experience. It’s only on point to be situated in the golden kingdom.

Kumasi City Mall opening

Over in the Namibian desert Atterbury is creating a dream shopping destination for the people of Walvis Bay. We caught up with Evert Kleynhans and Stewart Steyn for a progress report on Dunes Mall

The last time we spoke was six months ago, how has construction progressed since then? What is happening on the site at the moment?
Construction on site is progressing well, and we are on schedule to open on 26 October 2017. By the end of this month, the roof structure will be 100 percent complete. The external services and access roads have also commenced and are progressing well.

 Have there been any unforeseen challenges that needed to be dealt with?
Building far away from home is always a challenge! One cannot visit the site on a regular basis – every site visit needs to be planned well in advance. Fortunately the main contractor is doing an excellent job on the site. The finishing trades are of concern but will be closely monitored when we get to that stage. Other than that the council of Walvis Bay has been very helpful and are actively involved. It must be the most frequently that I’ve ever seen a building inspector on site!

Walvis with its very corrosive climate requires that all the materials you use be chosen to withstand those harsh conditions. Does the climate impact in any way on the way the development unfolds?
The corrosion has been an interesting factor in our design process. Originally all external steel frames were replaced by timber door frames; this posed a huge security risk for the retailers. We eventually changed to galvanised door frames which all had to be imported from South Africa due to lack of local availability. All generators are also enclosed and not open to the elements.

At what point do you start with landscaping, and what are the landscaping plans for the mall?
The landscaping will be installed only very close to the end of the project and is envisaged to include ample plants suited to the environment with well-designed entertainment areas and mall furniture. Thus far we have already designed and installed the irrigation sleeves, as these had to be installed with the external roads and services. Although the landscaping only follows much later, the infrastructure had to be installed now.

In terms of leasing, how much space is left in the mall? What is the occupancy target for opening in October, and where do you stand at this point?
Leasing is progressing very well so far. We have now secured almost all national retailers from both South Africa and Namibia. We are obviously aiming to be fully let on opening. At the moment we are standing on 81 percent. We are aiming to be 90 percent let by end March.

What other tenants have been signed in the last 6 months? How many shops in total will there be in the mall?
Dunes Mall will have a total of 82 shops. Some of the big national groups we have concluded with or are in final negotiations with are PicknPay Super Market, Woolworths, Checkers, Dis-Chem, Clicks, Truworths Group, Foschini Group, Pepkor Group, Cape Union Mart Group, Mr Price Group, Cotton On, House and Home, Incredible Connection, Studio 88, Cross Trainer, Spur, Crazy Store, Torga Optical, Bank Windhoek, Nedbank and FNB.

What feedback are you getting from the Walvis Bay locals – is the mall hotly anticipated?
Yes, they are extremely excited about the mall. There is currently no mall in Walvis Bay or the surrounding areas that will compare to our Dunes Mall; so people as far as Swakopmund are expected to visit to experience great shopping here.

If we have to pick the most exciting current Atterbury development right now, it has to be the mushrooming precinct at The Club… probably because it will become Atterbury’s new head office soon! We spoke to leasing manager, Solet Viviers and development manager, Wiehan Strydom about the latest developments.

Give us a progress report for the construction phase… how far is construction and what is currently happening on the site?
We have three buildings under various stages of construction on the site at the moment: Klubhuis, which will house Atterbury, will be ready first, in September, Club Advocates’ Chambers where the structure is 70% complete and on track for November and thirdly we have just started construction on the new medical building targeted for completion by March 2018.

Why the decision to also move Atterbury’s head office here? When is the big move happening?
The location as well as the nature of the precinct is perfect for Atterbury. The Club is ideal in terms of its prominence in Pretoria, and the premises allow for growth and expansion. Here we see the company growing in an upmarket environment that promotes balanced living, in a node Atterbury wants to associate with. We are extremely excited to move in on 1 September.

What other tenants will share space with Atterbury in Klubhuis?
Apart from the 1 800sqm that we will occupy, we are in the process of concluding transactions with Wildswinkel, Fledge and Van Huyssteens Attorneys. The gym will also occupy 3 400sqm in the building.

Can you share what gym group it is?
Yes, it’ll be a Planet Fitness Blue and it’s substantially bigger, say, than the one at Lynnwood Bridge, which is around 2 200sqm. What’s special about this Planet Fitness model is that it will include an indoor running track, a feature offered only in Planet Fitness Megaclubs.

We believe the big news is that the doctors’ lease has been signed. Tell us more?
Most of the contracts for the new Club medical building has been concluded and we’re very happy to have signed up quite a substantial medical portfolio, which will be distributed over around 4 000sqm in rentable area. The Club Medical Centre day hospital on the top floor is a partnership between Fledge Health and two doctor consortiums, Spine Africa and Aepex. The doctors will have their consulting rooms on separate floors in the building with the day clinic with three theatres situated on the top floor. In addition there is also retail space on the ground floor.

How many doctors will be housed?\
Aepex will house at least nine doctors from different specialties – plastic surgeons, dermatologists, ear, nose and throat specialists and more; and Spine Africa will represent a number of spinal surgeons and radiologists.

To find out more about opportunities at The Club precinct, contact Solet Viviers on 012 471 1600 or solet@atterbury.co.za

As part of its new partnership with investment giant Old Mutual, Atterbury will be developing a new highly visible industrial park on the N1 South alongside the SA Mint in Midrand. We spoke to development manager Derrick Pautz about what is potting on the Old Mint site.

What exactly will be built on the site?
Old Mint will be an industrial park with a small office component, that we are developing in a 50/50 joint venture with Old Mutual Properties. We aim to develop about 62 000sqm of bulk. The Gauteng Department of Roads and Transport is also planning to implement major upgrades to the existing old Pretoria-Johannesburg Road (K101), taking it from a single-carriage road to a four-lane dual-carriage road. This will have a positive impact on traffic and access to the development.

Why the name Old Mint?
You may think it’s because the site is adjacent to the SA Mint, but you’d be wrong there was no pun intended! The land has been owned by Old Mutual for many years, which is where the “Old” part comes from, and the site was earmarked back in the ‘70s for the development of a peppermint factory, which was never built – from there the “Mint” part. This is the first land deal that we’ve done as part of the partnership with Old Mutual, so we are looking forward to the project and working with the Old Mutual team, paving the way for many more such partnerships to come.

What is currently on the site, and how big is it exactly?
The site is about 12.5ha and is currently bare. We have fenced the site and placed a marketing banner and will start importing fill for the future platforms in shortly.

When are you hoping to complete the project and open for business?
We will start with the servicing and infrastructure development early in 2017 with the aim to be complete by June 2017. Top structure will be rolled out as deals are realised over the next three to five years.

Does the site in Midrand present any specific geographical or geological issues that you have to consider?
The area is not negatively affected by poor subsoil conditions, but has underlying granite, which is definitely something one considers in the design of the platforms, as that can make earthworks cumbersome.

And are there other challenges that you foresee?
We are within 500m of a wetland so have had to apply for a water use licence in order to install the sewer connection to the SA Mint. Other than that, we are good to go.