Ground works are due to start  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 KwaZulu-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 hildegarde@zenprop.co.za.

Source: SA Property News