Regional Mall drives growth and INVESTMENT OPPORTUNITIES at Fountains Estate, Jeffreys Bay

CASE studies on the impact of dominant regional malls on property values surrounding areas have shown that, although slow at first, growth can be spectacular.

Glen Buchner, marketing manager of Fountains Estate, says “We looked at a number of case studies and found, although development was slow initially, phenomenal growth occurred from year 3 onwards. For example, Somerset Mall's area showed average growth per annum of 29% for ten years since opening and Gateway Mall in Umhlanga created growth of 3% average per annum over six years since opening,”

The Fountains Mall was opened on the 28th October 2008, and nearly R1 billion has already been invested in the all and adjacent business park. “Once the large national retailers commit, the rest follow suit and this is then the start of the growth,” Buchner comments. “Similar trends have been observed in Port Elizabeth, with Greenacres and Walmer Park leading the exodus of business and retail from the old CBD into the new growth areas.”

Jeffreys Bay has consistently been rated as the fastest growing town in the country over the past 20 years and like several other high-growth coastal towns including Somerset West, George, Umhlanga Rocks and Ballito, this growth has provided an opportunity fro a better planned central business district and regional shopping mall.

The developers, of Fountains Estate, Buchner Property Investments, did considerable research and saw an opportunity for a new regional shopping mall and business node at the intersection of the R102 (Humansdorp Road) and the top N2 access road into town. Recognising that this is where the future growth will occur, the developers created a Business Park and Industrial Park adjacent to the mall. R47 million has already been invested by the company in new infrastructure to cater for the further growth.

Dries du Preez, MD of Buchner Propvest, stated that there are strong indications that the Nuclear Power Station at Oyster Bay will get the green light. “We have already been approached by Eskom to discuss the potential of providing housing for 800 families in our residential estate. Should they make an announcement, the demand for property here will send values skyrocketing. The Fountains Mall and surrounding Business and Industrial Parks will then benefit greatly due to their strategic location,” he says. Clearly, commercial land around the mall provides and excellent capital growth investment opportunity.

Several local businessmen have erected premises and installed tenants who then provide ongoing rental income. Commercial property brokers are of the opinion that when prices are low and borrowing is cheap, as is currently the case, there is no better time to purchase commercial property in a new growth node. For information about the best property investment opportunities around the Fountains Mall and/or Jeffreys Bay, contact Susan van Tonder.

Chas Everitt Jeffreys Bay SUSAN VAN TONDER 083 565 2160 susanvt@everitt.co.za