Speaking at The Piazza's media launch yesterday, Mark Uhlmann, national sales manager of Amdec, which owns 50% of the company that owns Melrose Arch, said 90% of the retail component in The Piazza's first phase of development had already been let.
“Certainly, on the retail side there has been anticipation of a major retail offering at Melrose Arch. The existing retail at Melrose Arch has been very service-orientated retail.
“Now, with phase one and two of The Piazza, it will bring critical mass to the precinct. This will include convenience shopping and fashion shopping,” said Uhlmann.
Amdec CEO James Wilson said there was similarly strong demand for office space: “The office space at Melrose Arch is 100% let on the existing precinct. There is strong demand for this particular node and also because of constrained space in general in the market.”
The Melrose Arch mixed-use precinct in Johannesburg had a total development potential of 315000m², of which about two thirds, including The Piazza, was under construction.
The estimated cost of the entire development would be R7bn, and it would be rolled out over five to seven years. The first phase of The Piazza would be completed by 1 April next year and the second and third phases by October next year, said Wilson.
Phase four, which included the development of the Taj Johannesburg Hotel, would be completed by February 2011. The 13500m² hotel would be the first of its kind in Johannesburg.
Offices would make up 50% of the first phase and retail the balance. In total, 50000m² would be developed.
A four-star hotel would account for 50% of the second and third phases, with retail making up 25% and offices 25%. About 24000m² of space would be developed in the second and third phases.
“Obviously, as a developer one is worried about the economy, particularly the international financial crisis,” said Wilson. “However, Melrose Arch is a unique precinct which attracts many international visitors and its commonly regarded by Johannesburg residents as a very safe, upmarket precinct.”
He said that the company had been fortunate in its dealings with retailers and office users to date, and it had experienced no decline in interest from “people wanting to be located here”.
Nicholas Stopforth, director of the Melrose Arch Development Company, which is charged with rolling out the development, said international retail brands would be occupying space at Melrose Arch. These included True Religion Denim Bar, Mac Cosmetics, Lacoste and Ben Sherman.
Local national retailers that would occupy space included Woolworths, Edgars, Truworths, Foschini, American Swiss and Due South.
Source: Business Day
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