Newsletter • June 2015 • Issue 7

NEWSLETTER • JUNE 2015 • ISSUE 7

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LAND TRANSFERRED FOR 50,000M2 CONSTRUCTION AT SPRINGS MALL AT BALLITO JUNCTION’S MULTI-LEVEL THAVHANI MALL BLUE CRANE ECO PARK EXPANSION asset classes in the last 30 years. And, this game that requires developers to juggle several certainly looks like it will continue to do so going balls at the same time. forward.” “Experience over time makes you better at it, He points to research from the SA Property but every project is different with its own issues Owners Association (SAPOA), which shows that and intricacies. On a new mall development, regional centres are the best performing shop- you’ve got to carry out feasibility and demo- Insights ping centres due to their defensive nature. In graphic studies; secure the land; get buy-in the current economic environment, the smaller from tenants to secure a strong and diverse Paul Gerard and community shopping centres are under retail mix; have a functional mall design that Managing Director from pressure. works for the location; secure municipal and Flanagan & Gerard Property other approvals; get a good contractor on board; Peter Gerard Says Gerard: “SAPOA and the SA Council of and, secure bank financing, amongst other Development & Investment Shopping Centres have pre-defined what are things. Peter Gerard, Co-founder and Executive regional and super regional shopping centres in e are thrilled to report Meanwhile, Menlyn Maine Cen- Director of Flanagan & Gerard Property terms of size. But, we at Flanagan & Gerard also “When all these things come together and are positive momentum with tral Square is another land- Development and Investment, has more look at the functional dynamics of shopping finalised, you’ve got a shopping centre scheme construction underway mark development that Flana- than 40 years of experience in the proper- centres. Our new 35,000sqm Heidelberg Mall, that works. However, it’s an incredible balanc- on all our major new regional gan & Gerard has been roped ty industry, chiefly in the area of shopping for example, is a regional shopping centre in the ing act,” he explains. shopping centre developments. into to assist as the retail leas- centres. town. It is the right size for the town and market Interestingly all set to open in ing and development consult- it serves.” 2017. ants. The 60,000m² Central Square mixed-use develop- Gerard and Patrick Flanagan, who are Our 45,000m² Springs Mall at ment will have a 30,000m² bou- long-time friends and business partners, Warning of ‘overbuilt” shopping centres, such Blue Crane Eco Park and the tique mall at its heart. first met while studying at Wits University. as one familiar example in the West Rand, 65,000m² Ballito Junction They cut their teeth working for Michael Gerard says overbuilt malls were risky because Regional Mall will both open in The latest milestones in our Rapp at Rapp & Maister (now Liberty) in the the owners would need to hold them for years March 2017, while the 50,000m² current projects under devel- before they started to really perform. Thavhani Mall in Limpopo is 1970s and being involved in the first development, which are highlighted opment phases of Sandton City and East- also set to open in 2017. This is in this newsletter include: set to be a very busy year for gate Shopping Centre. “We at Flanagan & Gerard build based on Flanagan & Gerard Property • Site Development Plan demand, and allow for future expansion. Just (SDP) approval from the Development and Investment Today, they run one of South Africa’s lead- look at Middleburg Mall, which opened at local KwaDukuza Municipal- 2 with three landmark regional ing shopping centre development and around 44,000m in 2012 and we expanded it to mall openings. ity for the redevelopment of 2 Ballito Junction into a investment groups. Flanagan & Gerard has 56,000m last year. The highly successful High- regional mall. This has built up an excellent and enviable track veld Mall has now been expanded three times. It will be similar to the peak last year in October, when we opened the way for record in the development of dominant opened two major shopping construction. regional shopping centres, including Vaal “This is our way. Rather than overbuild upfront, centres in Gauteng – Heidel- • Overcoming outstanding we develop centres that are sized right for their town planning hurdles on Mall, Highveld Mall, Mall of the North, Mid- berg Mall and the Eyethu delburg Mall and many more. markets. We err on the conservative side, but Orange Farm Mall. These were the Springs Mall develop- allow for expansion based on performance of ment, with construction now in addition to the opening of the the centre and demand. Expansions are also underway. Currently, the group has around R4billion 15,000m² Phase Two extension undertaken for our centres to retain their domi- • The land transfer of the in new regional shopping centres under of Middelburg Mall in Mpuma- nance in their areas,” he says. langa. Thavhani Mall site from the local Thulamela Municipali- development such as Ballito Junction ty, opening the way for Regional Mall in KZN, Springs Mall at Blue “We are in the risk minimising business. From Besides the Springs Mall, Balli- Crane Eco Park, Thavhani Mall in Limpopo to Junction Regional Mall and construction. an income side, if 85% of your tenants are Thavhani Mall developments, • A successful leasing launch and an expansion underway at Vaal Mall. national players, then if the market experi- of Menlyn Maine Central which are all-new malls and These are all being undertaken with vari- ences financial trouble the impact will not catalyst projects in their Square. ous partners, and represent major retail • The opening of the first be as negative. Another key area of regions, Flanagan & Gerard is developments in their locales. managing risk is around financ- also undertaking a 15,000m2 phase of the Vaal Mall expansion. ing. We fix interest rates expansion and makeover at its Gerard comments: “Flanagan & Gerard successful Vaal Mall. Together, upfront so that we are not these new openings and the We look forward to bringing you develops and invests predominantly in affected by fluctuations in expansion at Vaal Mall repre- more great news and updates regional shopping centres as they are rates,” adds Gerard. sent investments of around in our next newsletter, which lower risk because some 85% of tenants R4billion. All are being done will be out in September, just are national retailers. Regional shopping On the development side ahead of the SA Council of with our joint-venture partners centres have proved to be one of the best of the business, Gerard on the respective develop- Shopping Centre’s Annual Con- performing property investments in all ments. gress. says property is a complex

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onstruction on the new billion rand Thavhani Paul Gerard, Managing Director of Flanagan & outlets, the people of Thulamela will be Mall in the bustling Limpopo town of Thohoy- Gerard, comments: “Thavhani Mall will become a delighted to have access to a modern shop- andou has finally begun as the prime land on landmark and is going to change the face of Tho- ping mall on their doorstep. Much-needed which it is being development has been trans- hoyandou. The development will be the catalyst local jobs will also become available ferred to Thavhani Property Investment from the for a new precinct and hub of retail, commercial through the development”. Thulamela Municipality. and community services for the local “Thavhani Mall people. Adds Flanagan: “This is a hugely exciting Thavhani Property Investment and the is going to development for us and is one of the biggest Key Development Facts Thulamela Municipality made the change the face “It is going to be developed on a spec- new property developments in Limpopo. much anticipated land transfer • 50,000m² regional shopping centre of Thohoyandou” tacular site that has excellent access With the land transfer having been finalised announcement on 09 June 2015. • Prime location in Thohoyandou, Limpopo, at the intersection of and visibility. As a double-level centre, and earthworks construction underway, Thavhani Property Investment is jointly owned by the R524 road to Louis Trichardt and Sibasa Road going north. Flanagan & Gerard Property Development and the mall will have a combination of lifts, stairs Thavhani Mall is now scheduled to be com- • Thavhani Mall will be the anchor and catalyst development of a Investment, together with local businessmen and escalators to assist shoppers and will offer plete and open its doors in 2017.” bigger, mixed-use commercial property node that will include that make up the company Zevodox. shoppers a quality retail experience with a com- drive-through restaurants, motor dealerships, an office park, prehensive mix of stores.” Thavhani Mall’s development will see sever- big-box retail and other commercial developments. The prime 27ha site was purchased from the al new retailers coming into the town. A • To have some 106 stores • municipality by the developers for the 50,000m2 Patrick Flanagan, Executive Director of Flanagan number of national food chains have also Two level mall, which will be home to Thohoyandou’s first Regional Shopping centre development, which is & Gerard, says: “Thavhani Mall will be a already been secured as tenants, including escalators. • Ample free parking bays to cater for Thohoyandou’s growing set to be the catalyst for a bigger new commer- top-notch Regional Shopping centre. With more Spur, Panarotti’s and KFC as well as major number of car commuters cial development node in Thulamela. than 106 retail stores, restaurants and service South African banks. • Land transfer of 27ha site from the Thulamela Municipality took place in June 2015. About 12ha will be allocated to the mall. Contact Developer and Investor

Chris Teague Thavhani Property Investment (Pty) Ltd - made up of Flanagan & 082 866 4414 Gerard Property Development and Investment, and local company [email protected] Zevodox. Tenant Mix & Leasing • Anchors – Woolworths, Edgars, Pick n Pay and Spar • 75% let • Further major and secured tenants include Truworths, Foschi- ni, Markham, Mr Price, Miladys, Legit, Exact, John Craig, Bogart Man, Pep, Ackermans, Jet, Shoe City, Studio 88, Cross Trainer, TotalSports, Sportscene, Mr Price Home, Pep Home, HiFi Corp, Clicks, Link Pharmacy, Nedbank, Capitec, Spur and Panarottis amongst others • Balance of retail mix to include local and national independent retailers, plus other leading fast food and restaurant brands.

Construction Program

• Earthworks have commenced with the main contractor to follow shortly.

Completion Date

Scheduled completion date – 2017

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Construction at Springs Mall at Blue Crane Eco Park Key Development Facts • 45,000m² regional shopping centre onstruction is now well underway on the regional shopping mall project is a major invest- As part of the broader Blue Crane Eco Park • Excellent site in Springs in the Ekurhuleni Metro, east of Gaut- billion rand Springs Mall at Blue Crane Eco ment in Springs. It is great that the local council development, the mall will have positive eng. Located in the suburb of Casseldale, which is easily 2 accessible and visible from the N17 highway, R51/Wit Road as Park – a new 45,000m regional shopping centre has given all the relevant approvals and economic benefits, including providing local development in Springs in eastern Gauteng. well as off Jan Smuts Road. construction is now well underway and progress- job opportunities during construction and • There will be a realignment of Jan Smuts Road – the road ing well.” once the mall is completed. along the northern side of the site The earthworks contractor has been “This exciting • The mall is also part of the broader Blue Crane Eco Park on site since 1 April 2015 as all regional shopping Thavhani Mall development, which will see further commercial development outstanding town planning hurdles mall development is The mall development is the brain- The leasing progress on Springs Mall has on 10 hectares of land surrounding the mall. have now been overcome. Now the a major investment child of the Springs-based D’Arrigo been excellent, reports Flanagan. “We have • Set to have over 150 stores • main contractor, Giuricich Bros in Springs.” family. It also benefits from the lead- already attracted several of South Africa’s Ample free parking Construction, is on site and ing know-how of a respected and leading retailers and brands. In fact, the Developer and Investor construction continues apace on this experienced team of business and retail property mall is already 85% let. Now we are select- ground-breaking dominant regional shopping developers and investors at Flanagan & Gerard ing the balance to offer a great tenant mix. A Blue Crane Eco Mall (Pty) Ltd will develop and own the mall. This company is made up of Flanagan & Gerard Property Development centre development in Springs. and the Giuricich Brothers Group. wide variety of restaurants, electronics, and Investment, Murinda Investments and the D’Arrigo family gifting, décor, banking, services, health and based in Springs. The development will be managed by Blue Crane With their different expertise, the joint develop- beauty and fashion retailers will be part of Eco Mall (Pty) Ltd, of which Flanagan & Gerard ers and owners of Springs Mall at Blue Crane the mall’s mix.” Tenant Mix & Leasing Property Development and Investment, Murinda Investments (owned by the Giuricich Brothers Eco Park plan to build a regional shopping centre • Anchors – Pick n Pay, Checkers, Woolworths and Edgars Group) and the D’Arrigo family are shareholders. that the Springs’ community can be proud of. The Springs Mall will boast striking visibility • 85% let mall is set to become a landmark retail asset from the N17 highway and will also act as an • Other major national retailers secured as part of the tenant mix include The Foschini Group, Truworths, Mr Price Group, Patrick Flanagan, Executive Director of Flanagan that serves the region’s consumers with a top interceptor on the N17 for people travelling Clicks, Dis-Chem, Incredible Connection, and major South & Gerard says: “At a billion rand, this exciting quality shopping experience. to Mpumalanga and Swaziland. African banks. • Balance of retail mix to include local and national independent retailers • The mall will include family entertainment and restaurants. Contact Construction Program

Jonathan Shutte • Site handed over on 1 April 2015 to the earthworks contractor, 084 887 4888 Jodan Construction. [email protected] • The main contractor, Giuricich Bros Construction, commenced construction in June. • Earthworks contract overlaps with main contractor’s contract, to expedite construction. Completion Date

16 March 2017 (ahead of the Easter holidays)

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he construction site of the R1.4 billion that will see the existing 10,000m² centre being tainment and leisure component anchored by a Ballito Junction regional shopping overhauled and extended to more than six times Nu Metro cinema complex and trendy restau- centre is bustling with activity as earth- its current size.” rants. This, together with a top-notch retail mix works are well underway on the 65,000m² of top SA and international fashion outlets and developments on KwaZulu-Natal’s North He adds: “Construction on Ballito Junction has major department stores, will set the new Ballito Coast. already created some 120 jobs for workers from Junction apart in the region,” says Flanagan. the local community, and this is expected to increase when construction is at its peak. Con- He adds: “The new centre is destined to become Flanagan & Gerard Property Development Key Development Facts struction is anticipated to take about 24 the top shopping destination on the KZN North and Investment, together with Preto- • months.” Coast as well as an entertainment hub for local 65,000m² Regional Shopping centre ria-based Menlyn Maine Investment Hold- people and visitors to the town. • Major expansion with the existing 10,000m² centre experienc- ings, are the joint developers and owners of ing a transformation simultaneously with the new develop- The local KwaDukuza Municipality “Set to become the Ballito Junction is expected to cater Ballito Junction. Construction giants WBHO approved the Site Development Plan for shoppers not only from Ballito, ment have been appointed the main contractors the biggest mall on • Prime site at the entrance to Ballito, just off the N2 highway (SDP) in early March (2015) for but further afield, including Stanger, on the development, which will see Ballito Ballito Junction’s redevelopment the burgeoning KZN Tongaat and Umhlanga.” north between Durban and Richards Bay. Also has a direct link Junction become the biggest mall on the to the M4 coastal road, which connects Ballito to Umhlanga into a regional mall. Development North Coast.” and Durban. burgeoning North Coast. rights for the mall, which is on a Flanagan reports that the existing • To have some 130 stores prime location at the entrance of Ballito, allow centre continues trading above expectations. As • Ample parking Patrick Flanagan, Executive Director of the centre to be further expanded to 92,000m². part of the mega redevelopment, this part of the Flanagan & Gerard comments: “We are centre is undergoing a degree of modernisation Developer and Investor pleased that construction is progressing “With this mega redevelopment, Ballito Junction to tie-in to the expansion. Already 80% of the well and we have WBHO on board as the will be transformed into a world-class Regional space in the bigger, bolder new centre has been Menlyn Maine Investment Holdings; and, Flanagan & Gerard main contractor on an exciting development Shopping centre, boasting a considerable enter- let. Property Development and Investment

Tenant Mix & Leasing ContactContact • Anchors – double level Woolworths and Edgars, plus Game, NuMetro and existing anchors, Pick n Pay & Dis-Chem ChrisChris TeagueTeague • 80% let 082082 866 866 4414 4414 • Exciting new international brands will complement estab- [email protected]@fgprop.com lished national retailers. • Balance of retail mix to include local and national independent retailers • Food court and alfresco dining will have top fast food outlets and restaurants • Exciting family entertainment level anchored by an 8-screen NuMetro Cinema complex, which includes the Xtreme and VIP cinemas Construction Program • Earthworks, including 6,000m lateral support and piling commenced 16 January 2015 • Contractors – Jodan (bulk earthworks), Franki (lateral support and piling) with WBHO being the main contractors • Full Site Development Plan (SDP) approval from the KwaDuku- za Municipality secured on 04 March 2015. • Infrastructure in terms of water and electricity have been secured • Development rights exist on the site allow for the centre to be further expanded to 92,000m² Completion Date Scheduled completion date – 2017

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Chris Teague 082 866 4414 [email protected] Menlyn Maine’s new Central Square enlyn Maine Central Square is conferencing hotel, a 14,500m² With 88 stores, the Central Square the superb new mixed-use office tower, 4,000m² tenant mix will offer everyday development launched within the state-of-the-art Virgin Classic groceries, top fashion brands, multi-billion rand, 315,000m² Gym, and a lush public park. owner operated restaurants, Menlyn Maine green city mega health and beauty, banking and Jonathan Shutte development in Pretoria. As one of Menlyn Maine Central Square held South Africa’s most noted shop- a very successful retail leasing other services. It will also be home 084 887 4888 ping centre developers, Flanagan launch on 28 May 2015 on site in a to Pretoria’s first Virgin Active [email protected] & Gerard Property Development giant marquee next to Menlyn Classic Gym. and Investment was appointed as Maine’s all new sales and visitors the retail leasing and development centre. Anchors include Woolworths Food, consultants to achieve a singular Pick n Pay, SuperSpar and Virgin aal Mall’s exciting R420 million expansion and sion of Dis-Chem and a new Sheet Street and Cash retail mix within the boutique mall Speaking at the launch, Patrick Active. The mall is already 70% let, makeover will see several big brands making Crusaders, as well as expansion of Toys R Us/Babies at Central Square. Flanagan, Executive Director of with other major brands secured Flanagan & Gerard, said: their debut at this prime regional shopping centre, R Us,” says Shutte. “Central Square including Cape Union Mart, Poetry, including Ster Kinekor, Cotton On, Cotton Joint developers and will be the “Central Square’s investors of the Central boutique mall will be Red Square, Tasha’s, Koi, Remo’s, On Kids, Mr Price Sport, Factorie, The “New Ster He adds: “The core development, which is 2 Square development - vibrant heart of one-of-a-kind in Preto- Turn n Tender, Mythos, Frank’s Scene, Typo, Legit, Due South, Crafters Kinekor cinema the 15,000m retail expansion, is now well Menlyn Maine Invest- the Menlyn ria. It will be niche and Pub, Fego, Nedbank and First Market and The Foschini Group’s new kids complex will underway. A seven screen Ster Kinekor ment Holdings (Pty) Ltd Maine mega tailored to a unique National Bank. clothing store Soda Bloc. cinema complex is an exciting new addition, bring the which will include a Ster Kinekor Prestige and the Public Invest- development” market with the capital ultimate cinema ment Corporation SOC being home to a signifi- Menlyn Maine Central Square is That’s the word from Flanagan & Gerard’s cinema, bringing the ultimate cinema expe- leasing executive on the project, Jonathan experience to rience to the Vaal. Limited (PIC) – are creating an all cant number of foreign embas- located in a prime site with excel- Shutte. the Vaal. ” new public space with Central sies.” lent access from the N1 motor- Square set to be the vibrant heart “In addition to Dis-Chem’s expansion, other way’s Atterbury and Garsfontein of Menlyn Maine. He added: “It is targeted to be the “We have got some great additions coming into Vaal major existing tenants increasing their footprint at point of first call for convenience interchanges and is right off the Mall as part of this opportune makeover and 15,000m2 the centre include Edgars, Woolworths, Truworths, The 60,000m² Central Square shopping, while the piazza is set to main arterial of January Masilela expansion. There has been strong demand for space Foschini, Jet, @Home, TotalSports, Sportscene and development will have a 30,000m² be a unique public space and Road. It will have 1,800 basement at the mall both from new brands wanting to come in Markham. The expanded stores and new additions to boutique mall with a piazza as its meeting place with top end restau- parking bays and 300 open parking and particularly existing major retailers wanting to the retail mix will provide shoppers with an even focal point, boasting upmarket rants, beauty and pampering bays. expand,” says Shutte. greater choice of more than 140 retail, restaurant and restaurants, niche and conveni- outlets, as well as other service service outlets at Vaal Mall.” ence shopping, beauty and pam- offerings. The strength of the WBHO is the main contractor on “Vaal Mall’s revamp and expansion project marked a milestone in April with the completion of the first Paul Gerard, Managing Director of Flanagan & Gerard pering outlets, and other services development has allowed us to the project. Construction is on as part of its unique mix. The other hand pick a mix of key tenants that phase. Construction on the second phase is progress- comments: “Vaal Mall is a great retail asset that we schedule with Central Square half of the development will cater for the needs of the consum- ing well with the overall development set to be com- are proud to be reinvesting in. Since opening in 2006, include a 213-room apartment and er.” opening in September 2016. plete in March next year,” he adds. Vaal Mall has recorded a strong financial performance, solid trading densities and foot counts of The development will see Vaal Mall increase in size to nearly 10 million shoppers annually. This growth has 65,000m2, entrenching its position as the preferred underpinned the decision to expand the mall.” and dominant regional shopping centre destination in Vanderbijlpark and the greater Vaal Triangle. Vaal Mall has been the leading shopping destination in the Vaal region since opening nine years ago, and is co-owned by a company within the Flanagan & Gerard Property Group and Sycom Property Fund.

“Phase 1 of Vaal Mall’s overhaul included the completion of a new 3 level structured parking area. It also included the extension of Entrance 1 for the expan-

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