IN A move that could signal a strategic change for East London retail business, a leading businessman has closed one of his three Gonubie supermarkets and announced a classy new development in Mdantsane.
Well-known businessman Götz von Westernhagen, who owns 12 Spars throughout the province, said he wanted to tap into fresh money flowing into Mdantsane.
Von Westernhagen said he had burnt his fingers horribly with his Gullsway SuperSpar, which opened in Gonubie’s Kings Mall just as the economy crashed in 2008. “It never made a cent since it opened,” he admitted yesterday.
Von Westernhagen said Mdantsane’s income profile had shifted as residents opted to stay bond-free and rather renovate. This had freed up a third of their monthly income.
He said his new R36-million, 3400m² complex, situated close to Mdantsane’s upmarket Zone 13, would create up to 300 jobs. He hoped to attract R8-million to R10-million a month, or 10% of the estimated R80-million to R100-million earned by Mdantsane residents.
In addition to the SuperSpar, Von Westernhagen said the new development would have a Tops, a Build-It, five ATMs and room to expand later.
“That area of Mdantsane has been without any retail services for years now, and based on the Spar demographics, business will trade very well in the area,” he said. “There have been enquiries from potential tenants including the post office and KFC.
“We will build as time goes on.”
Von Westernhagen said a licence had already been obtained for a private hospital to be built in the hub, although the Dispatch was yesterday unable to get the details of when the new health care facility was expected to open.
Engel & Völkers estate agent Maki Gitywa said certain areas of Mdantsane were experiencing a lot of positive growth, and with the new mall and hospital, house prices in Zone 13 were expected to rise.
“Prices of those houses will go up and that will work perfectly with home owners that have been looking to sell.
“We might even see more houses built in that area. It is a good spot for business as it central and accessible.”
Mdantsane businessman Khaya Jekwa said negotiations were in place with Shoprite and fast food retailers to build another complex in the same area.
“Shoprite said they were looking at building a 3000m² outlet in a complex that will also have a Hungry Lion and a pharmacy. I think by this time next year we could have that small complex with other shops around,” Jekwa said.
Harcourts Cornerstone’s principal agent Lance Gouws said the new complex would definitely increase demand and value of property in the area.
Phumzile Ndendela of National African Federated Chamber of Commerce (Nafcoc) said they were excited about the new developments in the township.
“As Nafcoc we are happy to see development in Mdantsane. It is necessary given the history of the place.
“The well established businesses are doing well which is why many business owners are now attracted to the place to pursue further developments,” he said.
Meanwhile the owners of King’s Mall, True Group, announced that a Pick n Pay would open in the complex on December 1. Izak Joubert, Property Director for Pick n Pay, confirmed it and told the Dispatch: “We are looking forward to being of service to Gonubie.” — mamelag@dispatch.co.za
Big business begin to eye Mdantsane
Well-known businessman Götz von Westernhagen, who owns 12 Spars throughout the province, said he wanted to tap into fresh money flowing into Mdantsane.
Von Westernhagen said he had burnt his fingers horribly with his Gullsway SuperSpar, which opened in Gonubie’s Kings Mall just as the economy crashed in 2008. “It never made a cent since it opened,” he admitted yesterday.
Von Westernhagen said Mdantsane’s income profile had shifted as residents opted to stay bond-free and rather renovate. This had freed up a third of their monthly income.
He said his new R36-million, 3400m² complex, situated close to Mdantsane’s upmarket Zone 13, would create up to 300 jobs. He hoped to attract R8-million to R10-million a month, or 10% of the estimated R80-million to R100-million earned by Mdantsane residents.
In addition to the SuperSpar, Von Westernhagen said the new development would have a Tops, a Build-It, five ATMs and room to expand later.
“That area of Mdantsane has been without any retail services for years now, and based on the Spar demographics, business will trade very well in the area,” he said. “There have been enquiries from potential tenants including the post office and KFC.
“We will build as time goes on.”
Von Westernhagen said a licence had already been obtained for a private hospital to be built in the hub, although the Dispatch was yesterday unable to get the details of when the new health care facility was expected to open.
Engel & Völkers estate agent Maki Gitywa said certain areas of Mdantsane were experiencing a lot of positive growth, and with the new mall and hospital, house prices in Zone 13 were expected to rise.
“Prices of those houses will go up and that will work perfectly with home owners that have been looking to sell.
“We might even see more houses built in that area. It is a good spot for business as it central and accessible.”
Mdantsane businessman Khaya Jekwa said negotiations were in place with Shoprite and fast food retailers to build another complex in the same area.
“Shoprite said they were looking at building a 3000m² outlet in a complex that will also have a Hungry Lion and a pharmacy. I think by this time next year we could have that small complex with other shops around,” Jekwa said.
Harcourts Cornerstone’s principal agent Lance Gouws said the new complex would definitely increase demand and value of property in the area.
Phumzile Ndendela of National African Federated Chamber of Commerce (Nafcoc) said they were excited about the new developments in the township.
“As Nafcoc we are happy to see development in Mdantsane. It is necessary given the history of the place.
“The well established businesses are doing well which is why many business owners are now attracted to the place to pursue further developments,” he said.
Meanwhile the owners of King’s Mall, True Group, announced that a Pick n Pay would open in the complex on December 1. Izak Joubert, Property Director for Pick n Pay, confirmed it and told the Dispatch: “We are looking forward to being of service to Gonubie.” — mamelag@dispatch.co.za
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