Lowveld to get economic boost with R250-million new MAKRO Store
SA retail giant shows confidence in Riverside Park, Nelspruit by adding Makro to the local mix
Press Release • Craig Lewis • 17 November 2010
The Lowveld economy is set to receive a major boost after local developer Halls Properties concluded a deal with the Eris Property Group that will see retailer Massmart open the region’s first Makro store in November 2011. The new development will help create a large number of construction jobs over the next 12 months, as well as permanent employment within the new store once it opens.
The new 6.5 hectare site in Riverside Park has already been cleared in an area adjoining the new N4 bypass road, diagonally north west of The Grove and just west of the R40 thoroughfare connecting Nelspruit and White River.
Massmart currently operates 14 Makro stores in large metropolitan centres across South Africa, selling food, liquor and general merchandise to retail and wholesale customers. Its big-box warehouse format operates on a high-volume, low-margin approach to sales of quality branded merchandise.
Massmart already has other significant commercial interests in Nelspruit with its Game, Dion Wired and Builders Warehouse stores. The strategic decision to add a Makro to the local mix was taken after a thorough review of opportunities and growth prospects in the Lowveld retail and wholesale market.
In terms of the Riverside Park deal, Halls Properties has sold the land to Johannesburg-based developers Eris Property Group, who will develop the site to Massmart specifications. The developed property will be retained in the Eris Property Fund as an investment... Eris counts Rand Merchant Bank, Royal Bafokeng Holdings and Tiso Group among its major shareholders, and will be using a number of Lowveld contractors to help with the construction of the huge 16 500m2 Makro store over the next 12 months. R & L Architects, one of the architectural firms behind the acclaimed Mbombela 2010 Stadium will also be responsible for the design of the new Makro store in Riverside. Halls will be responsible for the provision of supporting infrastructure and services such as roads, water, sewer and electricity to the site within precinct.
“This deal consolidates Riverside Park as the premier retail node in the region, and we’re delighted that a leading South African retail group has once again shown confidence in the growth prospects for the Lowveld,” says James Aling, managing director of Halls Properties, the visionaries and developers of the Riverside Park precinct.
Riverside Park, a formally constituted City Improvement Distinct (“CID”) is fully operational and administered by the Riverside Park Precinct Association (RPPA) ensuring a well marketed, maintained and secure node. The new warehouse development will comply with the Urban Design Framework for Riverside Park and will enjoy excellent access and visibility..
The deal once again proves that the Lowveld’s leading companies can compete on the national stage and successfully partner with their larger Gauteng-based counterparts.
“We are extremely excited at the prospect for this new development in Riverside Park, and delighted to be working together with the professional team at Halls. This is not our first development in the Lowveld, but certainly the largest investment in the area to date. Given the growth opportunities that the region offers, we have a strategic intent to expand our investment portfolio in the Lowveld ” says Barend de Loor, director at Eris Property Group.
The new 6.5 hectare site in Riverside Park has already been cleared in an area adjoining the new N4 bypass road, diagonally north west of The Grove and just west of the R40 thoroughfare connecting Nelspruit and White River.
Massmart currently operates 14 Makro stores in large metropolitan centres across South Africa, selling food, liquor and general merchandise to retail and wholesale customers. Its big-box warehouse format operates on a high-volume, low-margin approach to sales of quality branded merchandise.
Massmart already has other significant commercial interests in Nelspruit with its Game, Dion Wired and Builders Warehouse stores. The strategic decision to add a Makro to the local mix was taken after a thorough review of opportunities and growth prospects in the Lowveld retail and wholesale market.
In terms of the Riverside Park deal, Halls Properties has sold the land to Johannesburg-based developers Eris Property Group, who will develop the site to Massmart specifications. The developed property will be retained in the Eris Property Fund as an investment... Eris counts Rand Merchant Bank, Royal Bafokeng Holdings and Tiso Group among its major shareholders, and will be using a number of Lowveld contractors to help with the construction of the huge 16 500m2 Makro store over the next 12 months. R & L Architects, one of the architectural firms behind the acclaimed Mbombela 2010 Stadium will also be responsible for the design of the new Makro store in Riverside. Halls will be responsible for the provision of supporting infrastructure and services such as roads, water, sewer and electricity to the site within precinct.
“This deal consolidates Riverside Park as the premier retail node in the region, and we’re delighted that a leading South African retail group has once again shown confidence in the growth prospects for the Lowveld,” says James Aling, managing director of Halls Properties, the visionaries and developers of the Riverside Park precinct.
Riverside Park, a formally constituted City Improvement Distinct (“CID”) is fully operational and administered by the Riverside Park Precinct Association (RPPA) ensuring a well marketed, maintained and secure node. The new warehouse development will comply with the Urban Design Framework for Riverside Park and will enjoy excellent access and visibility..
The deal once again proves that the Lowveld’s leading companies can compete on the national stage and successfully partner with their larger Gauteng-based counterparts.
“We are extremely excited at the prospect for this new development in Riverside Park, and delighted to be working together with the professional team at Halls. This is not our first development in the Lowveld, but certainly the largest investment in the area to date. Given the growth opportunities that the region offers, we have a strategic intent to expand our investment portfolio in the Lowveld ” says Barend de Loor, director at Eris Property Group.
(Published in "The Lowvelder" on Tuesday, 7 December 2010 - front page article)