Skyscraper City Forum banner
1 - 20 of 63 Posts

·
Moderator
Joined
·
23,363 Posts
Discussion Starter · #1 ·
Regional mall for Newcastle, KZN
Published: December 14, 2010



Artist’s impression of the Newcastle Mall, to be built in KwaZulu-Natal.

Ground works are due to start next month on the R400 million Newcastle Mall in Newcastle, KwaZulu-Natal.

In 2007, Zenprop Property Holdings (Pty) Ltd acquired the rights to develop a shopping centre of approximately 50 000m2 in the town. The first phase of Newcastle Mall will consist of 35 000m2 of gross lettable area on 21 ha of land next to the Black Rock Casino and Hotel on the corner of Oak Avenue and the Ladysmith Road, close to the intersection with the N11.

The third largest urban centre in Kabuli Natal, Newcastle is the administrative and economic powerhouse of the Amajuba district. It is host to a number of well developed economic sectors including agriculture, industrial (Arcelor Mittal Steel, Karbochem, synthetic rubber), coal mining, and manufacturing (aluminium, leather, textiles, clothing, cement and automotive). In addition, Newcastle is close to the N11, one of the main transport routes for goods and services between Durban and Gauteng.

“Despite its thriving economy and excellent growth potential, Newcastle has no major regional shopping centre,” says Greg Field divisional director of Zenprop.

“The town’s 500 000 residents have to make do with fragmented retail in the CBD, or drive 240 km to Pietermaritzburg to the region’s only large scale shopping mall. We decided to buy the land and develop a substantial regional centre offering choice, convenience, and a one-stop shopping destination that will service the entire region.

“We initially planned a regional centre of about 25 000m2, but after the positive response from the major retailers, we increased the size to 35 000m2, with the potential to grow our GLA in the second phase by a further 15 000m2.

“Zenprop will make greening and environmental efficiency a key driver of the design and construction of Newcastle Mall,” says Field. “All effort will be made to maximise water and power consumption efficiencies and reduce the carbon footprint as much as possible.”

The centre will accommodate about 100 stores, and will be anchored by Checkers, Pick n Pay, Game, Edgars, and Woolworths.

“We’ve already signed up a number of leading South African retailers including Ackermans, Boardmans, Jet, CNA, Legit, Clicks, Pep, Mr Price, Milady’s, Foschini, Markham, Total Sport, Exact, American Swiss, Identity, and Truworths,” says Hildegarde Riphagen of Zenprop’s retail leasing division.

Zenprop has developed 250 000m2 of retail space over the past six years, including Vangate and Zevenwacht Malls in Cape Town, Athol Square in Sandton, Design Quarter in Fourways, Maponya Mall in Soweto, and the redevelopment of Jacaranda and Sunnypark Malls in Pretoria.

Construction of the Newcastle Mall is scheduled to be completed in the first quarter of 2012.

Zenprop will be hosting a retail leasing launch on site in February. Call Hildegarde Riphagen on 011 217-7716 or 082 453-3613, or email [email protected].

Source: SA Property News
 

·
Registered
Joined
·
1,917 Posts
lovely
 

·
Annman
Joined
·
7,095 Posts
^^ Agree somewhat, however CBD's also have a responsibility. For too long, some town's municipalities, retailers and CBD businesses have been complacent. CBD-businesses and local governments have a responsibility to keep the town's core attractive to tourists, shoppers and business investment.

Cape Town's CBD could've been killed by Century City, but wasn't because the CBD in Cape Town was visionary and proactive.

Stellenbosch's CBD could've gone to the dogs, but investment there has been amazing. Paarl too, could have seen massive capital flight due to the Paarl Mall opening, but now, Main Street is looking more attractive than ever.

Worcester has a similar battle to fight due to Mountain Mill Mall. I'm trying to fight that battle with local businesses and NGO's.

If towns do not look after themselves, they're doomed to "die." It is our collective responsibility to be proactive and innovative and adapt to the times. Small towns that do not have vision will die, town's that have vision will simply diversify, improve and flourish.
 

·
Registered
Joined
·
172 Posts
^^ Agree somewhat, however CBD's also have a responsibility. For too long, some town's municipalities, retailers and CBD businesses have been complacent. CBD-businesses and local governments have a responsibility to keep the town's core attractive to tourists, shoppers and business investment.

Cape Town's CBD could've been killed by Century City, but wasn't because the CBD in Cape Town was visionary and proactive.

Stellenbosch's CBD could've gone to the dogs, but investment there has been amazing. Paarl too, could have seen massive capital flight due to the Paarl Mall opening, but now, Main Street is looking more attractive than ever.

Worcester has a similar battle to fight due to Mountain Mill Mall. I'm trying to fight that battle with local businesses and NGO's.

If towns do not look after themselves, they're doomed to "die." It is our collective responsibility to be proactive and innovative and adapt to the times. Small towns that do not have vision will die, town's that have vision will simply diversify, improve and flourish.
First off, Hi everyone.

Secondly, I would like to contribute a bit to this rather old topic; if the shopping centres in the Newcastle CBD kept themselves up to standard the need for a larger non-central complex would not be as great. However, there are several CBD renewal efforts currently underway which have already resulted in a vast improvement in the overall look of the town centre, but logically and unavoidably increased the traffic, worsening congestion issues. Point of interest; some days the situation is so severe that certain roads are blocked-off to allow easing of traffic flow. The current CBD layout and design cannot accommodate the high volumes and a decentralisation effort is likely needed. There were already various steps made towards this goal, such as the relocation of Game (Scott Str Mall) some years ago, and the construction and expansion of Amajuba Mall. This has only eased the original problem to a marginal degree as the Amajuba Mall has created its own set of issues due to shortsightedness in the planning of both of its phases.

Newcastle has a real need to lighten the burden of traffic in its CBD and the construction of the new mall would certainly make a difference. It is to be built right next to the main traffic artery, which was re-aligned and widened a few years ago as a result of the high volumes registered passing between Madadeni and Newcastle CBD. Note that the shops mentioned in the tenant listing are already present in many other areas of town, many recently built / renovated. Hopefully, these shops would not relocate, but open seperate branches, a indication of the size of the market as viewed by multiple retail groups, with the exception of some of the larger shops (notably certain anchor tenants)

Additionaly, the mall would in all likelyhood serve not only the single town but also the surrounding communities; Glencoe, Dundee, Utrecht, Osizweni, Memel, Volksrust, Dannhauser, Ladysmith, etc. The vast majority of these towns are within 50km of Newcastle, with the exception of Ladysmith and all are significantly underserviced.

It is to be noted that, although Newcastle has played its part in the recession and undergone some hardship, especially in the manufacturing sector, it has shown persistence in growth throughout the past 10 years overall, contrary to most of the surrounding towns, with the construction of various office parks, additional shopping centres (Taxi City, Village Walk, Midas Mall, City Central shopping centre, Nedbank Building renovation (currently underway) CTM relocation and various other endeavours). These are small developments, but a clear indication of the trust put in the potential of this town.

A concern that may exist is if the supposed cinemas were to be built in the mall as well. Newcastle does indeed have a theater complex, but regrettably poor maintenance by the private owners (whose main focus is heavy freighting and not property management) have left it a far cry from the original vision of what it is supposed to be. A separate cinema would hurt the existing on a large scale. Focusing on what the target market wants is the right way to go - clothing and food.

The roads for this new mall have already been built and various other construction projects, including further retail and housing developments, are planned and approved for this area as it is easily accessible and offer a stunning view of the splendour that is the Drakensberg.

They may do well to offer a taxi / bus terminal at this new shopping complex (which is rumored to be part and parcel) as the current taxi rank is severely overflowing and often causes huge frustration at one of the CBD exists towards Newcastle west.

All in all, the mall, if well and carefully planned, could only boost the town profile. The collection of shops must cater for the upcoming black middle class as well as the existing white and indian (and far eastern) groups already prevalent. Amajuba mall has gone some distance in this regard but as limitations in the development has put a lid on its potential, the reigns will have to be carried by some other project.

I do believe, however, that Newcastle can't accommodate a single retail complex much larger than the proposed 35000m2, and I hope the developers don't overshoot. The other slight concern is some of the anchors listed such as Woolies, Game and Edgars. It is noteworthy as I am not convinced that the current branches in Newcastle for these paticular retail outlets can compete with their own kind in such close proximity (less than 5km). And if the idea is to relocate it would likely impact the CBD to a severe degree.
 

·
Explore
Joined
·
2,868 Posts
Very interesting.
Woolies has already indicated they will relocate to the mall -the current one is a franchise (several of which will be closing in various smaller towns around the country as they're ending the franchise model).

I remember several years ago reading that Newcastle had proportionately the highest Chinese population in the country. Do you know if this is still the case Cuberman?
 

·
Moderator
Joined
·
23,204 Posts
Thanks for your views Cuberman and welcome to the boards.

I think it would be unfair to compare Newcastle to Paarl, Worcester and Stellenbosch as it is far larger than any of these places. The problem is that retailers will generally close a store to open another in a new mall in these towns, therefore something takes a knock. Its not like the 3 main metros where retailers generally brazenly open far too many stores.

If the stores shut to open in the mall, the knock on consequences are huge. Its all good and well saying its the town and cbd's fault, but the vast majority of the buildings in cbd's are own by a multitude of investors, a mall is owned by one that generally already has multiple dealings with all the retailers. so they all chummy together and build a mall to all make loads of money. Nothing wrong with that and making money, but the problem is we perpetuate the dying centre of the small towns as the high street will never beat the mall.

This is going to lead to a vast rethink of town centres in small towns over the years ahead, as one after one they are all losing their central areas and are not in the position like the 3 main metros to have vast populations that make the cbd's continue to work.
 

·
Registered
Joined
·
172 Posts
Very interesting.
Woolies has already indicated they will relocate to the mall -the current one is a franchise (several of which will be closing in various smaller towns around the country as they're ending the franchise model).

I remember several years ago reading that Newcastle had proportionately the highest Chinese population in the country. Do you know if this is still the case Cuberman?
Hi GregPz.

I don't have the data on that as I have lost contact with my sources over the years as I am no longer involved in that part of the economy, but there has been much noise made about the friction between the far-eastern expats and the local lower income labour force. Quite a few times there have been harsh clashes that have resulted in the expats threatening to take their business elsewhere. It must be added that the upset driving the dislike between the two sides was fueled by unfavourable working conditions and our patented xenophobia. I would be surprised if the Chinese / Taiwanese community is half of what it was 10 years ago. I may be wrong.

Can you add anything else regarding the new mall insofar relocations, new investment, etc? EDIT: :) Found press coverage regarding Woolies. To be honest, I would be too pleased if the surrounding towns lose their outlets - more for Newcastle. Not very nice, but it is survival of the fittest.

http://www.tios.co.za/woolies-will-shut-franchise-stores-1.999742

SA BOY, I do not have decent images of the town readily available, but would suggest having a look at Google's street view. When I have some time, I'll post a couple of links to images taken around town.

Dysan1, while I agree that the buildings are mostly owned by a multitude of entities in most CBD's, Newcastle has the opportunity to combat the dying city centre syndrome in that there are instances where whole city blocks are owned by no more than one or two individuals / investment groups. That means that should these owners decide, multiple buildings can be renovated / combined to create favourable breeding grounds for new shopping centres and retain / attract more of the required consumer base. City Central in Newcastle is one example of this idea succeeding. The owner turned multiple aging buildings into a single, more attractive location that has been filled by both well-known retail outlets as well as smaller, family owned companies that appeal to a wide target market. The problem now is that this particular owner is pushing for a quick return on investment with somewhat high rent charges which I do not think will be sustainable.

So, really the issue of CBDs becoming empty shells is a problem with mindset and lack of foresight and inventiveness.

OT:

I was told some time ago (few months) that a similar project was scoped for nearby Ladysmith. It is highly unlikely as the town has shown little sign of growth, but does anyone know any more about this rumour?
 

·
Moderator
Joined
·
23,363 Posts
Discussion Starter · #20 ·
Newcastle Mall on schedule for opening March 2012
8 November 2011



Excellent progress is being made on the construction of northern KZN’s premier regional shopping destination and with work proceeding well ahead of schedule, the developers, Zenprop Property Holdings (Pty) Ltd, are more than confident that they will meet the March 2012 opening date for Newcastle Mall regional shopping centre.

“We look forward to delivering an exceptional retail experience to shoppers through an overall comprehensive retail offering in a modern, quality shopping environment.” said Zenprop’s Divisional Director Greg Field.
“Previously, the town’s limited and fragmented retail facilities, inadequate parking, and over-traded CBD meant that shoppers were forced to travel long distances to reach shopping malls in Pietermaritzburg, Durban, and Johannesburg” said Field. “However, come 29 March 2012, local shoppers will be able to experience all the choice, quality, and convenience of a regional mall, right here in Newcastle”.

On completion in March 2012, Newcastle Mall will comprise 93 stores spanning 38 000m2 of air-conditioned retail space. With an exceptional line-up of leading South African major retail chains including Woolworths, Checkers, Game, Pick n Pay, and Edgars, Newcastle Mall will offer a high quality one-stop shopping destination and become the regional shopping centre for northern KZN.

In addition to the major retail chains other well-known national retailers - including Ackerman’s, Boardmans, Jet, C.N.A, Legit, Clicks, Pep, Foschini, Markham, Total Sport, Exact, American Swiss, @ Home, Identity, Truworths, MTN, Vodacom, Cell, C, Bargain Books, Mr. Price Home, Mr Price Weekend, Mr. Price Sport – as well as major South African banks, have committed to premises within the Mall, and are bringing their new generation stores with all the latest fashions and trends.

According to Hildegarde Riphagen of Zenprop’s Retail Leasing Division, leasing of the Centre couldn’t have gone better. “The market has responded fantastically to the scheme, and with 5 months until opening, we find ourselves in the fortunate position of having only a handful of line-stores left to lease, which we are hoping to lease to some of the region’s local and independent operators”, she said.

Newcastle Mall will play home to several new and exciting food operators and retailers, signifying a number of significant “firsts” for both the town and the region at large. Mugg & Bean will open their first outlet in Northern KZN, while the popular Johannesburg-based bistro-lounge, Cappello’s will bring a new flavour to town. The Mall’s vibrant food court will not only feature a state of the art Steers, Fish Aways and Debonairs combo store, but there will also be a new generation Milky Lane / Giramundo combo store providing flamed grilled chicken and delectable ice cream products. Rounding off the food and beverage offering is SPUR, who will open their 2nd restaurant in Newcastle, and WIMPY, who will relocate to the mall from the CBD.

Further new-comers to the region include Trappers Trading, Rage Shoes, Bargain Books, American Menswear Lifestyle, Street Gear, Studio 88 and Tekkie Town. Additional boutique-style outlets delivering the latest in fashion and accessories, as well as a specialised bridal boutique, the latest in eye ware, luggage, hair and beauty products will complete the Mall’s vibrant tenant mix.

“Newcastle Mall truly has something for everyone. Its design, orientation, location, and tenant mix have been carefully chosen and crafted so as to deliver on our shopper’s needs – and to exceed their expectations. We have every faith that, come 29 March 2012, our shoppers will not be disappointed”, concluded Mr Field.

Source: SA Commercial Property News
 
1 - 20 of 63 Posts
Top