In an internal report entitled “How 10 Shopping Centres Got It Wrong”, a PowerPoint presentation criticises their locations, lack of an appropriate anchor tenant in some instances and inadequate facilities in others.
The report does not indicate whether or not Stanlib has investments in these malls.
Last night, 19 August 2009, a spokesman for Stanlib said it was not prepared to comment as it had not seen Business Day's article.
The report names the Design Quarter in Fourways, Bel Air Shopping Centre in Northriding, Irene Village Mall, Cedar Square, Atholl Square, WorldWear Fashion Mall, Bedford Centre, Stoneridge Lifestyle Centre in Greenstone Park, Melrose Arch Shopping Centre and Maponya Mall in Soweto.
It said that some of the shopping centres had high vacancy rates as a result of bad decisions. It is particularly biting about some.
A big mistake had been made with Maponya Mall as its developers wanted to “transplant Sandton City to Soweto”.
“Yes, it's an aspirational market but one needs a closer understanding on issues like culture and demographics,” the report said, and lists some of the stores that do not fare too well.
About the Design Quarter in Fourways, the report said the developers forgot one thing — an escalator. The report makes the point that it was the first multilevel retail centre in the country without one.
“To make it worse, the centre has only one set of lifts right at the other end of the centre — where people do not go,” it said.
However, the report said the central part had stairs, but that was an unwelcome “gym session”.
Bel Air Shopping Centre was built with no appropriate zoning rights, on land zoned for farm use.
Irene Village Mall also came for a drubbing with the report saying although the mall was award-winning for its architecture and lifestyle concept, “unfortunately, this had not translated to increased feet”.
Atholl Square, according to the report, had Spar — the anchor tenant — located at the basement.
“People drive straight to the basement, park, shop at Spar and off they go. This leaves the ground floor shops not feeding off Spar's feet,” the report said.
Bedford Centre had a conference facility, church and a hotel planned but there were no signs of these.
It also closed early on Sundays, at 2pm, and the report notes it has major competition from nearby Eastgate.
It was also downbeat about Melrose Arch Shopping Centre in spite of its recent extension.
“But the major retail nodes, Rosebank Mall and Sandton City, are busy with upgrades and extensions and both boast of the Gautrain station. This does not bode well for Melrose Arch,” the report said.
Source: Business Day
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