Durban shopping centre gets a R1.1bn makeover

Marius Muller

Marius Muller, CEO of Pareto, commented: "We are really excited finally to reveal this fantastic development at The Pavilion, which will take the centre up to around 139,000m² in size and entrench it as one of Durban's and SA's top super-regional shopping centres. This major makeover project will be the biggest investment in an expansion of The Pavilion since it opened two decades ago."

The development has been approved by the Pareto board and has also secured relevant municipal approvals.

Muller said: "At more than a billion rand, this development is going to take The Pavilion to a whole other level. The centre is going to be transformed with great new attractions, the most spectacular of which is a glass-encased rooftop fine-dining and leisure area to be called Sky@Pav. The development will also feature the opening of well-known international retail stores, some of which are not currently represented in the KZN market.

"Pareto is in advanced negotiations with global fashion retailers to take up space at the expanded centre. At the moment, we cannot reveal the fashion brands coming in, but what I can say is that a new international fashion entrant into the South African market will be anchoring the new retail section and will be occupying two levels. The iconic UK-based toy retailer Hamleys is also on the cards for The Pavilion."

New gym

Another major brand and new offering coming into the centre as part of the expansion is Virgin Active, which will open a 3,200m² gym.

Explained Muller: "The Pavilion is one of South Africa's leading shopping and entertainment destinations and amongst the top-five largest malls in the country. This expansion is demand driven, but also aimed at making sure The Pavilion retains its position in the market by securing the major international brands coming into South Africa and expanding its offering in line with the latest trends.

"Illustrating the significance of this latest expansion, the development will see the number of retail stores and other outlets at the centre increase from 240 currently to around 320 upon completion. The Pavilion will increase from 119,000m² to approximately 139,000m², making it just smaller in size to Sandton City and Menlyn Park Shopping Centre in Pareto's portfolio."

The 20,000m² expansion will include about 14,000m² to accommodate new retail offerings, 2,500m² for the new Sky@Pav rooftop feature and space for the Virgin Active. The development will also include 1505 new parking bays.

Create a wow experience

Muller commented: "It is definitely our aim to energise the space and create a wow experience not just for locals, but also to attract visitors and tourists to The Pavilion. At Pareto, we always aim for our shopping centres to be top of mind for potential shoppers and tenants in the South African market. Our massive new investment in The Pavilion will see it retain its status as one of the top-five super-regional shopping centres in South Africa.

"We are undertaking this massive expansion in order to also reposition The Pavilion within its market in Durban; for its existing customer base to remain loyal; and to attract new tenants and customers to the centre. Furthermore, the growing need for space from existing and potential tenants, both local and international, necessitates the planned reconfiguration and extension. Our announcement of this mega expansion comes in the wake of Pareto completing a R220 million upgrade at The Pavilion last year, which included a stunning all-new food court and expanded cinema and entertainment offering.

"The retail and commercial landscape surrounding The Pavilion has undergone significant changes in recent years with new centres opening such as Westwood, Galleria and Watercrest Mall. There has also been refurbishments of existing centres like Overport City, Westville Mall and Musgrave Centre.

"Increased competition in its catchment area, as well as competition from super-regional shopping centres, such as Gateway, which are able to accommodate international tenants like ZARA, meant that we needed to do something ground-breaking at The Pavilion. With this R1.1-billion project, we are doing just that."

Citing IPD and market research, Muller explains that The Pavilion currently provides significantly fewer stores when compared to other super-regional shopping centres, such as Gateway, which has more than 400.

Muller said: "The new development will be undertaken in a phased approach, with the Virgin Active project anticipated to begin in November (2015) and major construction work scheduled to start in February 2016 on the 14,000m² retail extension. Construction of the iconic new rooftop area will begin in October 2016 and the overall development is anticipated to take between 18 to 20 months to complete."

He said that Pareto and The Pavilion's centre management were finalising plans to try to ensure any disruptions linked to construction would be kept to a minimum, and both tenants and shoppers would be kept up to date on the development.