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Growing businesses need well-managed space
Date published 1 February 2007
Following on the successful launch in April 2006 of The Palms Centre in Lagos - at 20 000m², Nigeria's first fully-enclosed shopping mall - plans are already in discussion for an extension and the development of a further three similar malls in the oil-rich West African state.
'Nigerians have embraced mall culture,' says Broll Property Group chief executive Arnold Meyer. 'Not only has every tenant exceeded turnover expectations in the first year but trading densities are not unlike those experienced in a typical South African mall - around R2000/m².'
With Gross Domestic Product increases of six percent - and more in some instances - mainly on the back of strong natural resource prices, many African countries are fast-becoming key markets resulting in increased demand for professionally managed properties and facilities.
And it's on the back of this growth that SA-based Broll Property Group is making its mark.
'It's not to say that there are no property skills in these countries but through our presence we have brought additional elements to bear based on our more than 30-year's experience, ISO 9000certification and international connections through the CB Richard Ellis association.'
'Our own continental entry was actively encouraged by several SA-based clients who encountered difficulties in sourcing skilled property professionals. Modern retail is a complex science, demanding the convergence of several disciplines to ensure a pleasant experience for the shopper. And with the experience of managing over 100 retail centres in SA we were well placed to advise on what could be done elsewhere in Africa.'
And similar stories are occurring in other countries. The 19 000m² Mlimani City mall opened in Tanzania in November and the 20 000m² Accra Mall is scheduled to open in Ghana in March this year - once again, in both instances they are the first examples of Western-style shopping centres in their respective countries. Interestingly, the Accra Centre has been oversubscribed eight times by tenants wishing to secure space!
'Coming from SA we have a strong culture of empowerment. Our long-term success in Africa revolves around building the human capital of our partners in each country. Firstly, each office is a joint-venture with local partners. And secondly, we see our ground-breaking in-house Property Academy as playing a leading role in the upskilling of staff. While we use experienced staff temporarily seconded from our SA base to train key personnel and establish systems and procedures it is our intention to ensure that effective skills-transfer take place. This ensures property owners and tenants across the continent receive the same world-class benchmarked level of service irrespective of which office serves them,' adds Meyer.
The move into Africa has seen Broll's business increase significantly - almost one third of its R35-billion portfolio of assets under management is now outside of South Africa.
The jewel in Africa's retail crown will be revealed with the opening in March of the 80 000m² Tinapa Business Resort - an integrated business and leisure complex alongside the Calabar Free Trade Zone in Nigeria - one example of the flourishing opportunities on a continent once spurned by investors.
'We are proud of the role we are playing on the continent. Africa is an awakening giant and the opportunities abound. However, as in any other business, it pays to tread warily and deal with service providers that understand local conditions. A company's property needs are often fundamental to its success, a wrong choice can often be the difference between making it or not,' says Meyer.
Comprising four wholesale emporiums, 100 retail outlets, a food court, parking for 3000 vehicles, casino, restaurants and fisherman's village the soon-to-open Tinapa Business Resort in Nigeria is one example of Africa's exciting property developments. This will be the fourth shopping centre in the past 12 months outside of South Africa where Broll Property Group has been integral in the planning and leasing.
Chief executive Arnold Meyer believes growth into Africa is reliant on strong partnerships with local operators. While Broll brings internationally-benchmarked systems and expertise there's nothing to beat local knowledge he says.
Author: Imbongi Communications
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