April/May 2013 - Issue 3 2 0 1 3 the year of Expansions and new centres Our highlights this month from Flanagan & Gerard. The opening of the Breaking ground for a Speciality retail as first Pringle store new regional mall in a key feature of the at The Mall of the Orange Farm. Menlyn Maine green North in Polokwane, living precinct in Limpopo. Pretoria. ORANGE FARM MALL Co-founders Pat Flanagan & Peter Gerard have put together a team who are not only good at what they do but passionate about every aspect of development and leasing. FLANAGAN & GERARD NEWS Page 1 Message from F&G: The previous year has seen the fruition of many years of hard work at Flanagan & Gerard, with the developments of Nicolway, Middelburg Mall, and the expansion of Highveld Mall all completing in 2012. This has lead to significant growth in the Flanagan & Gerard portfolio, Developments are, however, becoming more complex due to a as well as new faces within the team. We are proud to announce number of factors. The construction industry is in a recovery, and Gareth Sanders as a new member of the team from May 2013. pricing is not quite as competitive as it was in the period from 2010 Gareth will have a role in the development management of the to 2012. This, in conjunction with weaker retailer performances business. Last year also saw the introduction of Dominique Drok and over the last 6 months, has resulted in lower returns, and tighter Jonathan Shutte to the team. Dominique manages the marketing feasibilities. Nevertheless, Flanagan & Gerard have been able to of the business, and is also playing a key role in the leasing of Eyethu secure quality sites that have existing market potential, extensive Orange Farm Mall and the expansion of Middelburg Mall. Jonathan growth prospects as well as key fundamental property characteristics is currently managing Morningside Shopping Centre but will also including accessibility and visibility. take on a leasing role with particular emphasis on Heidelberg Mall. We expect 2013 to be a great year for Flanagan & Gerard, and we We have been fortunate that Flanagan & Gerard has been invited wish to thank all of our development, equity and retailer partners to participate in some new exciting developments. All new for the successes of the previous years, and wish you all of the best developments have come with existing energy, and we anticipate for the future. breaking ground with more than 100,000m2 of new regional centre developments and expansions in 2013. These will include Paul Gerard the much anticipated Eyethu Orange Farm Mall situated adjacent to the bustling Stretford Station in Orange Farm, Heidelberg Mall on the N3, Thavhani Mall in Thohoyandou as well as the expansion of Middelburg Mall (within the first 2 years of its existence), and the expansion of Vaal Mall. We are also very excited to be creating another niche retail development within the Menlyn Maine precinct which will have all of the refined characteristics of Morningside Shopping Centre and Nicolway, Bryanston. “Performing centres inevitably result in expansion opportunities offering exceptional retail” FLANAGAN & GERARD NEWS Page 3 Middelburg Mall kicks off 12,000m² expansion just a year after opening Exceptional growth and strong demand from both shoppers and retailers is driving the planned expansion of the successful Middelburg Mall, with this second phase planned to open in late 2014. The expansion will see the mall’s current GLA of 43,000m² increase to 55,000m². The mall’s success is based on a philosophy of easy and fun shopping, with convenient shopping hours, generous parking and welcoming service all key parts of the experience. New retailers planning to open for trade in the expanded centre include Food Lover’s Market, Dis-Chem, Ackermans, Mr Price Sport and Toys R Us Express. Family restaurants Spur, Cappuccinos, Mugg & Bean and McDonald’s drive-thru will round out the dining options and Goldrush Bingo will be increasing its entertainment offering. • Middelburg Mall opened for trade almost a year ago in April 2012. • Jointly owned by Flanagan & Gerard Property Investments, East & West Investments and Mobe Investments. • Current GLA of 43,000m². Page 4 FLANAGAN & GERARD NEWS Strong trading attracts new retailers to Mall of the North International knitwear brand Pringle opened its first store in Limpopo province last month at The Mall of the North in Polokwane, • Mall of the North opened for trade in Polokwane, along with a host of other new retailers jostling to trade in the busy Limpopo in April 2011. mall. • Jointly owned by Resilient Property Income Fund, Flanagan & Gerard Property Development & Investment Sorbet, a Demalogica based skin care centre, niche retailer and Moolman Group. Signature Cosmetics and Vetsmart are all scheduled to open in • GLA of 75,000m². May, joining the 180 retailers already located in the mall. The 75,000m² regional mall opened in April 2011 and has traded exceptionally well ever since, attracting demand from the best retailers operating in SA. Anchors include Pick ‘n Pay, Checkers, Edgars, Game and Woolworths – as well as the only cinema complex in Limpopo. FLANAGAN & GERARD NEWS Page 5 ORANGE FARM MALL Eyethu Orange Farm Mall will act as an economic catalyst for Orange Farm and surrounds. The 27,000m² Eyethu Orange Farm Mall forms part of a wider While the primary trade area for the mall is Orange Farm and economic cluster bringing development, jobs and retail choice Evaton residents within a 10km radius, research shows the mall to Orange Farm and surrounding areas. will act as an interceptor for areas as far afield as Lenz, Anglers, Kwaggastroom, and Greater Sebokeng. The mall is scheduled to open in late 2014. Confirmed tenants include Pick n Pay, Shoprite, Edgars, Jet, The Located in the heart of Orange Farm, between the Johannesburg Foschini Group, Mr Price and Clicks. These will be complemented and Vereeniging CBDs, the site is accessible from the N1 Golden by an array of fashion and variety retailers, take-aways, Highway via the Orange Farm link road. banking, health and beauty, and service stores. Scheduled to open for trade in September 2014, the mall is • Eyethu Orange Farm Mall will be developed in Orange designed to act as an economic catalyst for the area and is Farm, mid-way between the Johannesburg and located adjacent to busy Stretford Station, the core of the new Town Square. Road and taxi facility upgrades have commenced, Vereeniging CBDs. along with the construction of new community facilities. • Jointly owned by Flanagan & Gerard Investments (Pty) Ltd, Stretford Land Developments (Pty) Ltd, Dipula Perhaps most significant of all, Eyethu Orange Farm Mall has Income Fund and the Orange Farm Community Trust. been designated a Presidential Project with national support at • Planned GLA of 27,000m². the highest level. Page 6 FLANAGAN & GERARD NEWS Heidelberg Mall The 33,000m² regional mall being planned in Heidelberg south of Johannesburg is designed to cater to middle-to high-income households in the greater Heidelberg area – as well as shoppers from as far away as Harrismith. Research shows that the mall’s primary and secondary catchment • Heidelberg Mall will be easily accessible from the N3 area has seen significant growth. highway, at the corner of Groenfontein and Jacobs Roads. Critically, the mall’s strategic mix of food, healthcare, • Jointly owned by Flanagan & Gerard Investments, Vila entertainment, clothing, household goods and services Moura (Pty) Ltd, VDM Architects cc, Impact Interactive CC expected to reverse the retail expenditure outflow from • Planned GLA of 33,000m². Heidelberg, as well as intercept the N3 regional shoppers. A key feature of the development is its role in creating a commercial hub in the town. A Volkswagen dealership is currently being built adjacent to the mall site and will open this month. N3 NORTH TO NIGEL SITE UNDERPASS ACCESS N3 SOUTH To Heidelberg CBD SITE ACCESS FLANAGAN & GERARD NEWS Page 7 Flanagan & Gerard bring specialty retail and dining to Menlyn Maine Menlyn Maine is SA’s first green living precinct – a mixed-use • Menlyn Maine will be developed in the heart of Pretoria’s node based on densification, energy efficiency, sustainability and green building principles. eastern suburbs. • Jointly developed by Flanagan & Gerard Investments and Located in Pretoria’s high-demand eastern suburb of Menlyn, Menlyn Maine Holdings. Menlyn Maine is easily accessible to the upgraded Garsfontein • Planned specialty retail and dining GLA of 24,000m². and Atterbury interchanges off the N1 highway. The 315,000m² precinct will include not only 250,000m² of prime office space and 24,000m² of specialty retail and dining, but also a 30,000m² residential component comprising 250 apartments. Other key mixed-use elements include a Sun Square hotel, and a Virgin Classic gym. A key feature of Menlyn Maine is the 5,700m² indigenous park, which serves as a focal point around which development is planned. Flanagan & Gerard are bringing best-of-brand retailers into the precinct with a careful balance of boutique, international and national fashion retail, supermarkets, unique gifting stores, and essential beauty, electronics and home décor options. A vibrant mix of dining options is a core offering. Construction of the retail component at Menlyn Maine kicks off in mid-2013. Page 8 FLANAGAN & GERARD NEWS Thavhani Mall Thavhani Mall brings economic upliftment and retail choices to Thohoyandou Located immediately to the south of the Thohoyandou CBD, the Planned to act as an economic catalyst for the area, the mall is regional 50,000m² Thavhani Mall will bring two levels of retail forecast to create 1,600 permanent employment opportunities choice to the residents of Thohoyandou and surrounding regions. when it opens for trade in early 2015.