Pick n Pay’s R150m Chatsworth foray

Pick n Pay’s R150m Chatsworth foray

RETAILER NEWS

The Mercury/ IOL.co.za - May 8th 2012, 09:18

Sprawling Chatsworth is set to have a new R150 million shopping centre by this time next year. 

Construction has begun on the centre, which is being developed by retail giant Pick n Pay a stone’s throw away from the popular Chatsworth Centre situated on the corner of Joyhurst and Tranquil streets.

The move marks Pick n Pay’s first foray into Chatsworth, an area it has had its eye on for decades but not managed to get a foothold. Now, it has chosen to secure a site and invest in its own property, where it will have the anchor store.

Spanning more than 6 000m2, which is about a seventh the size of the neighbouring Chatsworth Centre, the new mall is classified as a community shopping centre.

Izak Joubert, Pick n Pay’s property and store development director, said: “We are the developer of the site, so the full site development cost is being carried by us.

“We are investing close to R150m in the land as well as in developing the property and fitting out the store.”

He said the group would open the largest format Pick n Pay supermarket at the centre.

“We have been trying to open a store in Chatsworth since the early 1980s. We had originally worked on the site that Shoprite now trades from in the Chatsworth Centre, but at a late stage the developer decided to go with Checkers. We have no other representation in the area,” Joubert said.

“Pick n Pay endeavours to open stores in areas not served by us as soon as possible. This (Chatsworth) site is an example of how long it can take to get the right development going…

“The significance of this site is that it shows that we just have to keep trying until we get it right, even if it means that we have to own the whole development to make it happen,” he said.

Joubert said he could not comment on how many jobs could be created through the development.

He said Pick n Pay was aiming to have the store open by April 2013.

Colin Schenk, of Spire Property Management, which is handling leasing for the centre, said the Pick n Pay store would take up about 4 441m2 of space in addition to a 285m2 Pick n Pay liquor outlet.

He said there would be a further 727m2 for line shops.

“Enquiries are being received from prospective tenants for the line shops,” Schenk said.

“All takeaway outlets at the centre will be required to be halaal… The development is supported by 182 open and 182 covered parking bays making parking plentiful for the convenience of shoppers,” he said.

The management of Chatsworth Centre, which is owned by Sanlam Properties and managed by JHI, could not be reached for comment.

The new Pick n Pay centre is sure to increase competition among retailers and traffic in the Chatsworth CBD.

Syd Vianello, a retail analyst at Nedcor Securities, said Pick n Pay’s entry into Chatsworth was not surprising.

“It is part of their grand plan to shift focus extensively into emerging markets.

“Even if they need to develop their own sites, they are doing this to get into this growing market,” he said.