Spire Property Newsletter - November 2019
TENANT RESHUFFLE AT SPARROW SHOPPING CENTRE YIELDS PHENOMENAL SUCCESS
St John Gardner, Executive Director of Business Development for Spire explains that Shoprite had occupied the anchor tenant space within the Sparrow Shopping Centre for some time but had made the decision to expand and hence relocated to a larger space at the new Modi Mall, slightly out of town.
“Our team acted quickly to secure a new anchor and did an on-site inspection which revealed that the Shoprite anchor had possibly not been the correct tenant after all, as the average consumer visiting the centre was of a higher LSM who have access to private vehicles etc., whereas the lower income consumer was shopping in the main street node in the centre of town.”
“We further identified that the Pick ‘n Pay store had a very poor location in an unsuitable standalone building towards the less active side of town. Our Portfolio and Regional Managers Nico Venter and Simone Homan approached the leasing team at Pick ‘n Pay and we negotiated and concluded a 25 year lease with them, commencing with a speedy occupation of the space - limiting any downtime in rental.”
Along with this came other more suitable line shops and allowed Spire to re-tenant a number of the now not aligned line shops and undertake a capital sensitive upgrade to properly realign the centre towards it new target market offering. Spire was also successful in retaining a large portion of the Shoprite infrastructure, thereby reducing the capital required by Pick ‘n Pay to make the lease more beneficial to both parties.
“For three days, from the 24thto the 27thof October, we held a grand opening weekend at the Sparrow Shopping Centre and are pleased to report that it was a resounding success, with the total turnover for the newly opened Pick n Pay over the 4 days being R 2,380,000.00 - exceptional for such a small town, with a trading density of R 761,11 / m² over the for day period,” says Nico Venter.
“Pick ‘n Pay’s choir performed at the opening ceremony, officiated by the Mayor (Marleen Vermaak). Local actors from the popular TV show Getroud Met Rugby attended for a “meet and greet” on Thursday and the local radio station, Waterberg Stereo, broadcast from the centre for the three days. Children enjoyed jumping castles, face painting and balloon artists, and Friday night say local artists and renown Afrikaans singer Jakkie Louw performing.”
“Spire believe that this centre will now grow from strength to strength and with Ocean Basket and Auto Zone coming in soon will allow the community to do their shopping in one convenient community centre,” concludes Gardner.