19 March 2007
Source: EPROP.co.za, by Kagiso Property Developments
BEE property company Kagiso Property Developments, together with their development partners, have launched the first phase of a R380-million commercial and retail development in Nelspruit. This is Kagiso’s first major development outside of the company’s traditional powerbase of Gauteng and the Western Cape.
The Riverside Lifestyle Centre, a joint venture between Kagiso, AKA Capital, Lowveld developers Halls Properties and the Nelspruit-based empowerment consortium Mokgatlo Investments, has Builders Warehouse and Meltz Mega Factory Store as anchor tenants in the first phase of the development. These two national retailers are scheduled to start trading in October this year, with the rest of the tenants in the 18-store, 14,700m2 development opening their doors in April 2008.
A second phase of the development, with a further 20,000m2 and 30 stores, is scheduled for completion by the end of 2008 and will take the total value of the investment past R380 million.
The Lifestyle Centre forms part of the Riverside Park Phase II development along the Nelspruit/White River main road, and is in the same development node as the Riverside Mall, the Mpumalanga government buildings and the Emnotweni Casino complex.
“The new lifestyle centre confirms the Riverside precinct as Mpumalanga’s premier regional retail node. The centre will complement the existing Riverside Mall, and allows national and local retailers to showcase their products and services in an attractive, safe and secure precinct,” says Jerry Mabena, CEO of Kagiso Property Holdings.
“There continues to be strong economic drivers in the Lowveld region which has seen growth rates higher than the national average. The ongoing improvement of the Maputo Corridor, the opening up of Mozambique, Nelspruit’s capital status, and the number of people relocating to the Lowveld from Gauteng for lifestyle reasons are just some of the reasons why Kagiso is so confident in the property prospects for the region.”
The four joint venture partners in the Riverside Development Initiative (RDI), are currently focused on the development of the Lifestyle Centre, but a comprehensive development plan for the Riverside Park Phase II precinct will be rolled out on 110 hectares of Halls-owned land. It is envisaged that this master plan will take 10 to 15 years to complete, and raise the total investment by the consortium in the Riverside Park development node to R2,5-billion.
Reuel Khoza, from AKA Capital and chairman of the RDI says, “We are very excited with the opportunity to work with Halls and Kagiso in developing Riverside Park, which has established itself as a key development node in the region and has huge potential going forward”.
For further information contact:
Kagiso Property Holdings: Hugo Stroud 011 537 0500
Halls Properties: James Aling 013 753 5700
Gauteng-based Kagiso Property Holdings (KPH) is the property arm of the Kagiso Group. Kagiso Property Developments (KPD), which specialises in real estate development and funding, is a joint venture between Kagiso Property Holdings and Intaprop Pty Ltd.
Recent Kagiso Property Developments projects include the Microsoft and Tiger Brands head offices in Bryanston, office developments in Sandton and Illovo Boulevard, the Vaal Mall Shopping Centre, and the Willowbridge Lifestyle Centre in the Western Cape.
Halls Properties is part of H.L. Hall & Sons, a four-generation family business and one of the pioneers of commercial farming in the Lowveld in the 1890s. The company supplies fruit to supermarkets in the UK and Europe, as well as to the South African market. In recent years the company has successfully diversified into property development, with flagship properties including Halls Gateway to the Lowveld on the N4, Riverside Park Phase I, and the recently completed Riverside Auto Centre.
Mokgatlo is a Lowveld-based empowerment consortium, lead by Irvin Phenyane and includes Isiah Khoza and Francine Baloyi.
AKA Capital is a private equity and investment company which was founded in 2001 by three principals, Reuel Khoza, Sam Nematswerani, and Gary Morolo.