Highgate Mall to undergo revamp, set to become speciality mall
Highgate Mall, to be renamed Home of Africa, is set to become a home and décor mall, creating over 2000 jobs and housing 250 international and local brands after the revamp.
Home Africa Mall will be a wholesale distribution hub for construction and home-related products. Management said the mall will be a catalyst in expansion and facilitation of trade between China and Africa.
Nick Melrose, MD of Home of Africa, said the mall is the first of its kind in the country and continent as whole, and its unique offering will make a good value proposition to businesses and consumers.
“We had the benefit of converting Highgate Mall into this fantastic mall that is one stop for everyone. We have all home and décor products, from construction to home-related products,” he explained.
Melrose said Home of Africa was not concerned about recent growing concerns about an oversaturated retail market due to other on-going shopping malls.
Traditional malls losing steam
Over the past 10 years, to the end of 2015, retail property delivered an annualised total return (income and capital growth) of a substantial 16%, as measured by MSCI’s Independent Property Databank (IPD) index. However, ongoing pressure on consumer spending amid SA’s ever-growing pool of new shopping centres is starting to eat into profit margins.
Muriel Chinoda, analyst and MD of Business Engine said the development of Home of Africa was positive as the traditional malls were losing steam.
“As economic trends and consumer tastes and preferences change, and traditional malls' performance decreases, it is commendable that mall developers are increasingly looking at new and innovative use of spaces. While the concept of speciality malls is new in SA, Dubai’s Deira area has been using he model for the last two decades with a lot of success,” says Chinoda. In addition, “In the last 20 years, the US has witnessed the growth of the speciality 'medical mall' model where healthcare organisations are repurposing an entire mall or retail facility. The speciality mall model offers many benefits for both shoppers and shop owners. It is consumer-centric due to the convenience of location, ample parking, easy access and one-stop construction/home products experience.”
