New Metro retail centre gets finance
Artist’s impression of the revamped Buffalo City shopping centre.
Nedbank Corporate Property Finance recently approved R20 million development finance for the refurbishment and extension of the Balfour Park Shopping Centre on Balfour Road in Buffalo City, one of South Africa’s two new metropolitan cities
Previously known as East London, Buffalo City will become a metropolitan city after the local municipal elections. Along with Mangaung, previously known as Bloemfontein, which will also become a metro, the new Buffalo City Metro will bring the total number of metropolitan municipalities in South Africa to eight.
The other six metros are the City of Johannesburg, Tshwane (Pretoria), Ekurhuleni (East Rand), Cape Town, Nelson Mandela Bay (Port Elizabeth) and eThekwini (Durban).
“Nedbank is proud to support the development of Buffalo City, which has been declared a metro due to the brisk urbanisation in the city, the significant movement of people and goods and the rapidly expanding industrial areas and development nodes,” says Richard Thomas, regional executive Nedbank Corporate Property Finance, Cape.
“All of these developments bode well for the local economy, as well as the local property sector in Buffalo City.”
The Balfour Park Shopping Centre is currently located on two erven, and a third bordering erf was recently acquired, all fronting onto Balfour Road.
National brands that already occupy the main centre include Fruit & Veg City and Incredible Connection, which will soon be joined by Checkers as the anchor tenant. Other national tenants include Cash Crusaders, Sportz and Brands Furnishers.
The redevelopment of the centre by Sable Sand Trading 33 (Pty) Ltd, will be completed in two phases. The first phase will involve the refurbishment of the current Game premises for Shoprite Checkers.
During phase two, a new mall with 922m² of line shops will be constructed, along with a concrete deck to allow for semi-basement parking.
This extension will ensure the long-term viability of the development. The extension will necessitate additional parking for which the third erf has been acquired. The beneficial occupation date is in June/July 2011 and the commencement date of the Checkers lease is scheduled for July 2011.
“Our decision to finance the refurbishment and extension of the popular Balfour Park Shopping Centre on the busy Balfour Road is not only a well-considered investment, but also a significant contribution to the upliftment and improvement of this soon-to-be South African metro,” adds Thomas.
“As part of the proudly South African Nedbank group, Nedbank Corporate Property Finance is pleased to provide financial solutions that anticipate and fulfil the requirement for growth and expansion in future growth areas such as Buffalo City.”
The second largest city in the Eastern Cape province, Buffalo City is home to around 400 000 residents, while the Buffalo City metropolitan area has 1.4 million residents.
The city is an attractive centre for import-export business and its strategic location makes it an important investment destination. Its low input costs and excellent infrastructure - including rail and road access to the rest of the country, an airport and a deepwater port - have seen Buffalo City become the location of choice for major international companies such as Mercedes-Benz SA, Nestlé, Johnson & Johnson and Marley Flooring.
