In another example of its commitment to supporting property development that supports local government’s infrastructure initiatives, Nedbank Corporate Property Finance KwaZulu-Natal has provided a R273 million loan to fund the building of a new shopping centre in the booming KwaMnyandu growth node in Umlazi, which was officially launched on Friday, 1 March by the Ethekwini Municipality.
In Gauteng, Nedbank Corporate Property Finance has successfully concluded a R1.36 billion finance agreement with Billion Property Developments that will see the construction of the new 73 588 square metre Forest Hill Shopping Centre in Monavoni, Centurion.
The Nedbank loan will enable the developers of the new KwaMnyandu Shopping Centre to complete construction of the 34 000 bulk square metre development, which is set on land leased from Passenger Rail Agency of South Africa (PRASA) and adjoins the KwaMnyandu railway station in Umlazi, the second busiest station in KwaZulu-Natal.
This unique location will ensure that the new shopping centre enjoys maximum foot traffic as all rail commuters using the station will access it through the centre.
According to Anand Joseph, regional executive for Nedbank Corporate Property Finance in KwaZulu-Natal, the bank supported the opportunity to finance the shopping centre due to the proven track record of the developer and to play its role in enabling sustainable community upliftment through local job creation and infrastructure support.
Since 2010, Nedbank Corporate Property Finance has provided finance in excess of R1.3 billion to retail developments in KwaZulu-Natal, in rural or in previously under-serviced areas.
“Nedbank has long recognised the immense value that can be unlocked through forward-looking commercial partnerships that have the inherent potential to deliver lasting social sustainability,” he says.
KwaMnyandu Shopping Centre’s position in the heart of a vital growth node identified by the eThekwini administration makes this a development with significant long-term community upliftment opportunities, he says.
“We are also pleased to announce, in KwaZulu-Natal alone, facilities in excess of R1.32 billion have been approved for property-related activity by companies with black ownership, further contributing to the region’s growth and transformation,” says Joseph.
This is another quality shopping centre developed by Carlos Correia and his team, who have been involved in a number of highly successful retail centres in and around South Africa in recent years, as initial shareholders of the Vaal Mall in Vanderbijl Park and as the developers of the Senaoane Centre, Stretford Centre, Orange Farms Centre, Zamdela Centre, Sharpeville Centre, Kwamashu Shopping Centre, Richmond Shopping Centre, Phuthaditjhaba Shopping Centre in the Free State and various other developments.
In another example of its commitment to supporting property development that supports local government’s infrastructure initiatives, Nedbank Corporate Property Finance KwaZulu-Natal has provided a R273 million loan to fund the building of a new shopping centre in the booming KwaMnyandu growth node in Umlazi, which was officially launched on Friday 1 March by the Ethekwini Municipality.
According to Joseph, Correia’s proven development track record, coupled with the intensive local government development focus on the area and the fact that major national tenants are represented translates into the maximum potential for the KwaMnyandu Shopping Centre to achieve significant success from the outset. KwaMnyandu Shopping Centre will consist of over 23 000 square metre of GLA with the two major food anchors being Shoprite and Pick n Pay.
The fashion component will consist of Truworths, Identity, Markhams, Totalsports, Exact, Jet, Edgars Active, Sterns, Foschini, Ackermans, PEP, Mr Price Apparel and many other KZN based fashion companies.
Construction of the KwaMnyandu centre, which commenced in October last year, is expected to take 18 months and, once completed, the centre and railway station together will form an integral part of the KwaMnyandu growth node in central Umlazi.
Joseph points out that Umlazi, as the second largest South African township after Soweto, has been identified as a top priority area for the southern development planning region.
“The local government has extensive development plans for the area, which include a proposed mix of commercial and residential developments that should see significant economic growth in the area in the coming decade with over 200 000 bulk square metres approved by the Ethekwini Municipality for the KwaMnyandu Node,” he says.
Due to its proximity to the King Zwelithini Stadium and the Mangosuthu University of Technology, KwaMnyandu is also identified as a key education and sporting development node within the urban regeneration plans.
The KwaMnyandu Shopping Centre is expected to open just before Easter 2014.
In Gauteng, Nedbank Corporate Property Finance has successfully concluded a R1.36 billion finance agreement with Billion Property Developments that will see the construction of the new 73 588 square metre Forest Hill Shopping Centre in Monavoni, Centurion.
The brainchild of well known property developer and owner of Billion Group, Sisa Ngebulana, Forest Hill Shopping Centre will be situated on the N14 highway on the western periphery of Tshwane. It will offer a large regional shopping mall with 175 retail outlets, an eight-cinema complex and an ice rink.
Future phases include a 20 000 square metre value centre, offices, motor showrooms, residential homes and two hotels – all of which will form part of a massive new multi-functional precinct known as Forest Hill City.
According to Ken Reynolds, regional executive of Nedbank Corporate Property Finance in Gauteng, Nedbank made the decision to provide the required funding for the development based on its confidence in both the developer and the medium- to long-term future of the retail property sector in South Africa.
Ngebulana boasts an enviable property development track record, which includes the successful Hemingway Shopping Centre in East London and vast property investment experience, including the 2011 listing of the Rebosis Property Fund, he explains.
“He shares Nedbank’s confidence in the long-term potential of the country’s retail property market which has stood up very well to the financial challenges that have had a negative impact on other commercial property sectors in recent months,” says Reynolds.
In a further demonstration of Nedbank’s confidence in the developer and commitment to the retail sector, the bank structured the finance deal by way of a senior debt facility and mezzanine loan provided by its investment arm.
Forest Hill’s tenant mix and future development plans demonstrate an understanding by the developers of the growing trend amongst many South Africans where mall visits transcend mere shopping outings and have become family entertainment outings, points out Reynolds.
By capitalising on this trend through its accessibility, appealing tenant mix and contemporary design, the centre will almost certainly secure its sustainable success and ensure its continued growth and profitability into the future, he adds.
Print
