If you fail at first, try and try again

developers and national retail chains are going back to the townships much better prepared for these markets than a decade ago.

next month, for instance, umlazi megacity officially opens in the v section of durban's umlazi township . it has all the trimmings of a mall such as the popular pavilion up the road in westville, though on a smaller scale.

umlazi megacity is already 100% let; anchor tenants are spar and woolworths. the 30 000 m² mall is a private- public partnership between ethekwini municipality, sa retail properties and marriott property fund managers (martprop), which will also manage the centre. located at the entrance to the township, it is expected to provide convenience shopping for the 610 000 residents of umlazi and neighbouring township lamontville.

umlazi megacity cost r150m to develop and occupies a 14 ha site owned by transnet (a 40-year lease has been signed). it is expected to create 1 800 jobs and to attract annual spending of more than r400m.

urban studies market researcher dirk prinsloo says improvements in the economy and an emerging black middle class have opened up opportunities for development in townships. "more people can now afford to shop in such centres," he says. "the developments are welcome because they ease transport problems. and improving conditions spell positive development opportunities."

he adds that research has shown centres initially built in townships such as daveyton and soweto failed because there was too much focus on restaurants and cinemas. "data now helps to identify combinations of tenants that work."

emaweleni shopping centre, built more than 20 years ago rather inconveniently in the centre of umlazi's w section, was unsuccessful. this was where spar, as well as checkers, failed to thrive. today, it is a shadow of its former self, relying largely on banks and municipal services outlets as tenants.

spar property development manager craig coetzee says the group has learnt from experience. but the spar brand has grown in five years and, today, 60% of its new stores are in previously disadvantaged areas.

"we've learnt that shopping centres with a good mix of tenants are the best option," says coetzee. "they also offer more security. umlazi megacity is sustainable and the support of the municipality will ensure its success."

there are still problems for township developers. but louis boshoff, manager of sanlam property-owned dobsonville shopping centre, says today most have a better understanding of the market. "developers now make the effort to find out whether there is an actual need for a tenant. they do not rush in."

he says dobsonville shopping centre, which once experienced problems as a result of its tenant mix, is being extended by 4 000 m². "we have been inundated by prospective tenants.

"the centre is successful because it is convenient for people living in dobsonville, though some still have to travel a distance to get to it."

boshoff cautions against hurried development of centres. "it's better to start small and expand as patronage picks up."