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Centre Details Centre details Opening date: September 2016 Size: 21 000m2 Owner: Stanlib Botshabelo Mall, because of its location at the main and only entrance to Botshabelo and the proximity to the N8 which links Bloemfontein to Thaba Nchu, it will act as a regional centre to the entire area. A brief overview via google earth shows the vastness of the Botshabelo area and the substantial number of residents that the Mall will serve. The response from the nationals has been very strong. The centre will be anchored by two Supermarkets, Shoprite and Pick n Pay. There will be an exceptionally strong fashion component with The Foschini group with 5 brands, Truworths with 2 brands, Pepkor group and Woolworths. Furniture will be represented by Morkels, Ok Furniture and Lewis. We also have board approval from Cashbuild. Tenant Mix SHOP AREA Pick n Pay 2 000 Pick n Pay (Liquor) 300 Woolworths 800 Roots 540 Cashbuild 1 330 Clicks 550 Truworths 700 Identity 300 Foschini 300 Markham 200 Totalsports 220 Exact 300 Fashion Express 249 Rage 98 Sheet Street 150 OK Furnishers 686 Shoprite Liquor 160 Shoprite 2850 Pep Cell - Pepkor 45 Hungry Lion 160 Chesanyama 100 Alpha Pharm 187 Capitec Bank 242 Old Mutual Bank 143 Pep 450 Real Fish and Chips 102 Lewis 216 Morkels. 431 Site Location The site is located on the corner of Main Road and a national highway, the N8. Main road is the key feeder road into and out of Botshabelo (from the N8) while the N8 is the main transport route between Maseru (Lesotho), Bloemfontein and Kimberley. Both these roads carry considerable volumes of traffic and offer the site the potential for excellent visibility and access. Background of the area Mangaung covers 6 863 km² and comprises three prominent urban centres, which are surrounded by an extensive rural area. It is centrally located within the Free State and is accessible via National infrastructure- the N1 (links Gauteng with the Southern and Western Cape), the N6 (links Bloemfontein to the Eastern Cape), and the N8 (links Lesotho in the east with the Northern Cape in the west via Bloemfontein). Bloemfontein is the sixth largest city in South Africa and the capital of the Free State Province. The City is the Judicial Capital of South Africa and serves as the administrative headquarters of the Province. It also represents the economic hub of the local economy. The area is serviced by an east/west and north/south railway line and a national airport. Botshabelo is located 55km to the east of Bloemfontein and represents the largest single township area in the Free State. Botshabelo was established in the early 1980s and was intended to provide the much needed labour for Bloemfontein. Thaba Nchu is situated 12km further to the east of Botshabelo. Market Research The following information has been extracted from the Market Research carried out by Urban Econ and is summarized to reflect the information which specifically refers to the information which directly impacts on the proposed tenant mix for the centre. The Market Research was conducted by Urban-Econ development economists in July 2012. Demographics The Weighted Average Household Income(WAHI) is substantially higher closer to the centre than the overall WAHI for the area. Size The current primary market population consists of approximately 182,000 people and 46,000 households. The secondary market is approximately 40% of the size of the primary market and currently comprises of around 19,400 households. By 2018 an additional 5,000 people would likely have entered the market taking the total population size to around 258,000 and the household population to approximately 67,000. Age The market area is dominated by individuals between the age of 5 and 19. Many households in Botshabelo consist of children that live with extended family or grandparents, while immediate parents are either working or looking for work in and around Bloemfontein. Such households are however unlikely to move away from Botshabelo since property in and around Bloemfontein is expensive and Botshabelo has many schools that the children in the area attend. Income The weighted average monthly household income in Mangaung is LSM (R9,218) and is the highest among areas under consideration, and quite significantly higher than that of the primary market area. The primary area has a significantly lower weighted average household income when compared to that of the entire province. Shopping Destination preferences The most popular retail destination in Botshabelo is the main shopping area that comprises of the two formal centres (referred to as Re-A-Hola). A significant portion (16%) of the market population also uses the informal market to conduct their shopping. The most popular destination to do shopping outside Botshabelo is Bloemfontein (89%) followed by Thaba Nchu (10%). Shopping requirements This table was presented to indicate the types of shops that would be required. We do not necessarily agree with the contents of this, and have canvassed this with tenants who trade in these specific areas, who have confirmed that they would not be interested. The tenants include a Book store, a pet store and a coffee shop, and for this reason these have not been placed in the tenant mix. Fruit and vegetables as a fresh produce market have also not been included but this would be covered by the two supermarket chains. We have also not included Doctors, Dentists and Clinic, but have recommended that this be considered as a separate development in close proximity to the site. The report does refer to 300m2 of offices it is important to establish what is needed. i.e. Home affairs, Police station, clinic etc. All of these could be accommodated in close proximity to the site. Market demand Per the report the overall market demand is between 42 000m2 and 50 000m2 GLA. This needs to be adjusted to take into account leakage out of the area and the current retail offering known as Re-A-Hola centre. The Re-A-Hola centre which comprises of 2 shopping centres joined and is extremely fragmented and surrounded by informal traders, spaza shops and street vendors. It must be noted that this area is supported by the main bus terminal and taxi rank. Net demand for retail ranges from 20 000 to 29 000m2 in 2015. In view of this, we believe that we should be aiming at the 20 000m2 mark with the designs available to expand at a later stage, notwithstanding that the report does not recommend a phasing of the development. The anchors have requested that the design makes provision for their expansion in 5 years. Market Potential Market Potential 6 000 5 000 4 000 3 000 2 000 1 000 - Market Potential Centre Layout .
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