CEO William Brooks said while SA's lower-income market was showing the highest growth in retail demand, formal retail property in many rural towns and township markets lagged behind demand, owing to a shortage of quality shopping centres. To unlock this compelling growth, sites in high-growth areas were vital for shopping centres serving lower LSM shoppers, he said.
Synergy is a specialised retail property fund investing in commuter centres of 10000m² to 25000m² in rural and township nodes, in an operating partnership with retailer Spar.
Shopping centre developments in townships across the country are gaining momentum.
Malls are popping up in both metropolitan areas and townships in Limpopo, Mpumalanga, KwaZulu-Natal, North West and the Western Cape as developers tap into the mass market.
In recent months, there have been a number of major retail investments in previously disadvantaged areas by the likes of Old Mutual, Vukile, Advent Asset Management, Dipula and the Public Investment Corporation.
Keillen Ndlovu, head of Property Funds at Stanlib, said when it came to retail property investment, the lower-income market was still the place to be.
"It is where the population is and where the growth is. This reflects in the listed property sector where almost all retail properties exposed to this market are doing especially well, some at staggering levels," he said.
Providing the right products from the right size shopping centre was fundamental to a strong performance in this market. Spar was an undisputed master achieving this, he said.
For small town and township retail, Ndlovu said food and fashion were basic ingredients. Proximity to public transport was a further need. Banking facilities and ATMs also contributed, given the low internet penetration and a preference for cash transactions, he said.
Source: Business Day
For more than two decades, I-Net Bridge has been one of South Africa’s preferred electronic providers of innovative solutions, data of the highest calibre, reliable platforms and excellent supporting systems. Our products include workstations, web applications and data feeds packaged with in-depth news and powerful analytical tools empowering clients to make meaningful decisions.
We pride ourselves on our wide variety of in-house skills, encompassing multiple platforms and applications. These skills enable us to not only function as a first class facility, but also design, implement and support all our client needs at a level that confirms I-Net Bridge a leader in its field.
Go to: http://www.inet.co.za
