The Tembisa community in Ekurhuleni is set to be blessed with a new retail development, MegaMart, fetching a couple of hundreds of millions of rands.
The 14,600m² development in the township located about 20km east of Johannesburg propels the boom of new retail developments in previously marginalized areas, the historically black townships like Tembisa, Soweto, Alexandra and Umlazi. This trend has seen a train of developments, like the mega Maponya Mall, emerge in historically black townships across the country.
Scheduled for launch in November this year, MegaMart is made possible by a couple of players in a evolving arrangement. Enigma Property seems to have been the initial developer which is now on selling the development to JSE listed black economic empowerment styled property investor Dipula Income Fund. Nedbank is providing R238 million funding.
In a statement issued this week Nedbank said the finance deal was initially concluded between Nedbank Corporate Property Finance and the developers, Enigma Property. The development funding was provided on the basis that the development had been pre-sold by Enigma Property to Dipula Income Fund.
According to Ken Reynolds, Nedbank Corporate Property Finance’s regional executive for Gauteng, Nedbank’s involvement in funding the transaction demonstrates its confidence in the viability of the development and is in line with the bank’s long-term relationship driven business model.
Nedbank said the development was set to boast a host of national stores and local retailers. The bank said the proposed retail mix for the new mall is set to comprise of at least 80% national tenants and franchises and the centre will be anchored by Pick ‘n Pay.
“As a property finance business built on sustainable client relationships rather than individual project considerations, and one that understands the nuances of the property industry, we are able to structure deals such as these which are not straight-forward, said Reynolds. We were particularly interested in being involved in this deal given the solid experience, impressive track records and well-established portfolios of both the Enigma and Dipula management teams”.
“The location of the new MegaMart puts it in the middle of a fast-developing industrial and residential area in Tembisa and an independent demographic study revealed space demand in excess of 85 000m² of retail in Tembisa, which means this new MegaMart is likely to be very well supported from the outset.”
Reynolds added that Nedbank’s approval of the necessary finance for Tembisa MegaMart goes beyond mere financial considerations. It also aligns with the financial institution’s commitment to supporting commercial property development that is able to add sustainable value to the lives of South African families.
“While our lending criteria obviously focus heavily on financial viability and effective risk management, the decisions we reach also have a strong social sustainability component and the proposed Tembisa MegaMart meets these criteria by bringing leading retail outlets within easy and convenient reach of members of local communities – many of whom would otherwise face difficult and expensive transport challenges when doing their shopping,” said Reynolds.