"We are pleased that the study confirms an opportunity for an upmarket lifestyle centre for the area, a landmark node for the city and region. We understand that creating the best possible retail asset will depend on strategic composition and we viewed detailed research and planning as the vital starting point," says Neels Brink, of the Durban Point Development Company.
The proposed entertainment and lifestyle shopping centre development is part of the waterfront's mixed-use precinct, comprising residential, offices and hotels situated at Durban's Harbour adjacent to uShaka Marine Theme Park. The existing 88 retailers located in the 10 000m² uShaka Retail Village will be linked "seamlessly" into the proposed new centre. This is a key project by the local municipality and has the highest priority and political support.
"The retail centre will be the iconic heart of the development and the prize property asset of the node," notes Colin Sher, sales and marketing manager of the development company and MD of Broll Property Group KwaZulu-Natal.
The vibrant precinct already meets the critical success factors for the proposed shopping centre offering an established, high-profile location, unique concept and generous parking. The lifestyle centre would be integrated into the seamless design of the precinct to maximise the configuration of the centre to its spectacular context, offering a synergy of interlinked high-street shopping, galleria-style retail, entertainment and lifestyle features and traditional mall, all with an iconic waterfront setting.
According to the study, the local consumer market's annual combined retail spend is estimated to be in the region of R8 billion equating to an annual sales potential of over R850 million per annum for the shopping centre in this location.
An estimated 450 000 people live in the immediate area, which includes a large zone of the Durban CBD, and it is characterised by an increasing number of younger couples, families as well as mature parents. This mix of residents indicates the overall stability of the area. Furthermore, a large percentage, 68.3%, of the labour force is economically active, of which 75.7% are formally employed. Based on findings in similar markets, the new centre is likely to cater predominantly to the LSM 4-10+ groupings.
"While the research revealed that Durban's sub-region economic growth, which averaged between 4%-5% from 2003 onwards, dropped to 1% in the wake of the global recession, it is expected to recover in 2010," says Brink.
Even more positive, the study takes into account the current economic backdrop, which means that even when taking into account present challenges, the proposed centre would be set to thrive and bring with it additional economic benefits.
An important investment for the community, the study also finds that this centre would create approximately 1500 permanent onsite jobs.
Research confirms that the proposed centre is expected to attract a strong retail offering from the world's fashion runways to everyday convenience offerings, local shopping favourites, speciality stores and homeware.
"Of course, it would embrace its unique setting and its spectacular views - with a link on the one side to the canal waterway and the other to the beachfront and Indian Ocean - showcased by cafes and restaurants, ideal meeting places and social hot-spots," Brink points out.
In excess of R1.8 billion has already been spent on development at the waterfront, which is quickly becoming one of SA's newest and most prestigious mixed-use environments. This is in addition to R735 million neighbouring uShaka Marine World.
It offers prime land and development opportunities for investors as part of the planned R6 billion development. Development is already in full swing, with all Phase 1 land sold, comprising some 185 000m2 of bulk, and 17 developments consisting of residential, offices, hotels and retail outlets at various stages of completion, planning and construction.
Underpinned by this research, Durban Point Development Company will now promote the land for the proposed retail entertainment centre and make it available for investors or developers who wish to benefit from being part of this waterfront node.
"Various investors have already expressed an interest in this development and because physical construction will become possible in 2011, there is ample time for the required developer preparations," notes Brink.
Parties interested in the retail and entertainment lifestyle centre at Durban Point Waterfront are invited to contact Colin Sher on +27 (0) 31 337 3460 for further information.
