Outlying towns in the Eastern Cape such as Sterkspruit – situated just before the Lesotho border, and Mthatha and Tsolo in what was formerly known as the Transkei, are experiencing an increased demand for retail space, reports Amanda De Lange, portfolio manager of JHI Properties, based in Port Elizabeth.
Outlying towns in the Eastern Cape such as Sterkspruit – situated just before the Lesotho border, and Mthatha and Tsolo in what was formerly known as the Transkei, are experiencing an increased demand for retail space, reports Amanda De Lange, portfolio manager of JHI Properties, based in Port Elizabeth.
JHI operates in the area along the Eastern Cape from Mthatha through to East London, King William's town, Sterkspruit and Queenstown.
“Currently we are receiving a high number of enquiries for retail space in Sterkspruit and Mthatha, mainly as a result of a pent-up demand as well as growing passing trade. It also appears that national retailers, who may perhaps have saturated the market in major centres, are now looking at outlying areas with potential,” said De Lange.
“From our East London office we manage a number of other retail shopping centres in the region on behalf of a number of property funds."
These properties include Circus Triangle Shopping Centre in Mthatha, which is currently undergoing redevelopment and extension, with phase one of the project adding approximately 8 000 square metres to the centre.
"Other retail centres managed from East London are City Centre – also in Mthatha and which includes an office component, Ziyabuya Shopping Centre in Port Elizabeth, Equinox Mall in Jeffreys Bay, Market Square in Grahamstown, and Queenstown Mall and People's Place in Queenstown.”
De Lange says there is a general improvement in market sentiment.
“In the Port Elizabeth area we are currently seeing more positive economic sentiment. In Fidelity Centre in the CBD we recently concluded a three-year office lease on behalf of the local municipality."
De Lange says Coega is attracting business to the Eastern Cape region. Famous Brands are in the process of developing some 4 000 square metres at Coega, while FAW Trucks are establishing a manufacturing operation.
“In East London we are experiencing a demand for retail space in strip malls in the CBD,” said De Lange. She said the trend there was a higher demand for retail rather than office accommodation.
