Demacon research:
1. Location for retail has been evaluated as 73% (between 70% and 80% means that all fundamental points for a successful centre are in place).
2. 83% of people in the area are LSM (Living standard measurement) 6 to 10, means they earn R5 000 toR30 000 p.m.
3. 17% are LSM 10 plus, means they earn R30 000 or more per month.
4. Annual consumer retail spending for the market node was R4.8 billion in 2008. It could be R7.5 billion by 2013 and R11.3 billion by 2018.
5. 35 000 currently in a radius of 8km, 40 000 houses by late 2012.
- The Villa will immediately take 20% of the retail market share from the area when it opens in Sept 2011.
- Investors purchase at a fixed cap rate of 11.6%, compared to 7% in the current market (SAPOA research information Nov 2009).
- 70% already leased / National & International tenants.
- Applications for retail space have increased to the extent that the lettable area is going to be extended by 10 000m2.
- SAPOA “Property Review” article
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