Growthpoint’s R75m Walmer Park redevelopment enters final phase

Growthpoint Properties is nearing the final stages of its R75m redevelopment of Walmer Park Shopping Centre in Gqeberha as the listed property group splashes more capital on the established retail asset ahead of the busy festive trading period.

The country’s largest listed real estate investment trust (Reit) began work in March, with completion expected in November while the centre remains operational.

The final phase began in July and will complete the new internal mall area, including a link between the expanded Cape Union Mart and the new Edgars store, the group said.

The first phase is complete, with the group reconfiguring Edgars’ 4,680m² store into a 1,982m² format. The move has freed up space for a new internal mall area, creating room for a fresh mix of retailers as the revamp enters its final stretch.

Almost all of the newly available space has already been let with only about 100m² remaining. The move comes as retailers increasingly repurpose and resize their stores to match changing consumer demand and manage costs amid weak economic growth.

It will also bring Yuppiechef and ARC to the Eastern Cape for the first time, while iStore will move into a larger space. Cape Union Mart and Totalsports will also expand and relocate.

Burnt Studios and Old School have opened at Walmer Park, alongside Bootlegger Coffee Company, FARO, a revamped Slops and Clogs and Cellini.

Head of retail asset management at Growthpoint, Gavin Jones, said the redevelopment was being driven by the centre’s strong trading performance and continued demand from retailers.

“Walmer Park has consistently demonstrated the trading resilience and tenant demand that justify ongoing reinvestment. The additions to the centre’s retail mix made possible by this redevelopment will help ensure that it remains a strong and relevant retail destination in Gqeberha for years to come,” Jones said.

The redevelopment is part of Growthpoint’s broader strategy of recycling capital into dominant retail assets with strong trading performance and further growth potential.

Walmer Park has consistently demonstrated the trading resilience and tenant demand that justify ongoing reinvestment.

—  Gavin Jones, head of retail asset management at Growthpoint

The group has been reshaping its portfolio by disposing of noncore properties while increasing investment in assets and locations it sees as having stronger long-term prospects.

Recent retail projects include the R270m upgrade and expansion of Paarl Mall, as well as redevelopment work at Greenacres Shopping Centre in Gqeberha and Vaal Mall in Gauteng.

Walmer Park’s latest revamp is its eighth upgrade in 38 years and includes energy-efficient lighting and rooftop solar.

Mark Langley, head of retail development at Growthpoint, said completing the first phase while the centre continued trading had been an important milestone for the project.

“Delivering the first phase of the new mall area while the surrounding shopping centre has continued trading is a strong result for the development team. We are now equally focused on delivering the final phase to the same standard and completing the redevelopment in time for the busy festive trading period,” Langley said.