Commercial Property News South Africa

East Rand Galleria becomes East Point with R411m revamp

East Rand Galleria in Boksburg is being renamed East Point and receiving a major R411m reconfiguration and renovation from owners, SA Corporate Real Estate Fund.

This was the site of Pick n Pay's first Hypermarket, which opened in this strategic location in 1975. It was a resounding success and became the catalyst for the growth of the substantial and successful East Rand Mall retail node, which connects to the East Rand Galleria.

Now, the 45,000m² redevelopment project will an array of luxury outlet shopping, a fresh new family oriented food court, double its retail variety to around 120 stores, improve parking and access, create new levels of energy-efficiency and still offer shoppers all the quality and value they expect, with a substantially upgraded Pick n Pay at its heart.

An artist’s impression of what the new entrance of East Rand Galleria in Boksburg will look like after it undergoes a R411m reconfiguration and renovation and is renamed East Point.
An artist’s impression of what the new entrance of East Rand Galleria in Boksburg will look like after it undergoes a R411m reconfiguration and renovation and is renamed East Point.

"East Point shoppers are brand aware and benefit from substantial spending power, with a keen eye for value. We are refurbishing and tenanting the centre with their shopping needs in mind, while combining the latest in mall design and retail trends," says Preston Gaddy, divisional director of strategic retail leasing, Broll Property Group.

The group was appointed nine months ago to manage and lease the entire R9.4bn SA Corporate portfolio and has already reduced retail vacancies from 12% to less than 8% in the portfolio.

New façade, tenants

The ambitious 18-month project will strip out the entire mall and replace it with everything contemporary and new. Achieving a complete modernisation of the centre, on the outside its entire facade will change, it will receive a new roof and gain striking new entrances. Inside, the mezzanine levels will be removed so East Point can offer the latest in retail store designs with shop fronts of 4m, measuring up to leading international standards.

Rory Mackey, MD of SA Corporate, says, "The project will create a smart modern mall that links seamlessly with its surrounds, uses space more efficiently and improves the flows within the centre. Our strategic investment will ensure that it remains attractive, competitive and relevant for the long term and continues to support our performance for investors."

Nike will double the size of its outlet to 765m² and head the luxury outlet shopping in a new location in the mall. Negotiations are underway with several luxury and lifestyle brands to come into the centre.

East Point's links with surrounding retail and facilities were a focus of this project, as a result its 2,000m² Toys R Us will be upgraded and move its entrance point from the parking area to inside the mall. So too will the 11,000m² Game, which presently operates as a stand-alone big box.

Another highlight will be its new 2000m² family oriented food court and fun zone. Besides restaurants such as John Dory's, Pizza Pasta and Fego, it will also include fast service restaurants and a children's play area.

Embracing the latest trends in fitness, the centre will also introduce a 1,300m² gym, Zone Fitness.

Pick n Pay becomes more efficient

Pick n Pay is applying cutting-edge technology for logistics and operations to reduce its 21,000m² store to a substantially more efficient and completely revamped outlet of 13,500m². Its increased efficiencies create space for an array of new retailers. Some of the centre's most popular stores will stay on too, but in new locations. These include Pep, Shoe City, Flight Centre, Spec-Savers, Crazy Plastics, Vodacom, Carl's Jewellers, Carlton Hair, Post Office and 3@1.

There will also be a full upgrade to the centre's parking area to improve access and egress. The centre's parking area includes its KFC Drive-Thru, which will be entirely revamped, and Burger King will open here in November 2014.

Trading continues

Both the mall and Pick n Pay will trade throughout the changes. Pick n Pay's revamp will take place in 11 small phases, to minimise disruption for shoppers. The centre's reconfiguration and refurbishment project is also a phased project, with the first phase set to open in early 2015, which will include the newly configured mall area adjacent to Pick n Pay and the new Dis-Chem. The second phase is planned for late 2015 with a link to Game and the third for early 2016 when the last reconfigured line shops and refurbished mall areas will be completed.

"During this time, there will be some relocation of stores to temporary trading locations, but everything possible is being done to streamline this process to reduce disruption for shoppers," says Gaddy. He also confirms that space in the reconfigured East Point is already 80% let.

Environmental considerations

Like Pick n Pay, the mall will become more efficient and environmentally conscious. The refurbishment will introduce major energy-efficiency to its plant and equipment. The chilled water air conditioning system will be controlled with a building management system and motion sensor lighting will be placed in service areas. The owners are replacing the entire roof and all the insulation to the latest standards to improve energy efficiency and gain environmental benefits.

In line with the latest generation of malls across the world, it will feature touch screen directories and benefit from a fibre-optic backbone. This will create permanent Wi-Fi for retailers to plug into for high-speed data transfer and for shoppers to go online.

"We are using high-tech resources to improve efficiencies for retailers and create a first-rate shopping experience for customers. We are also working closely with the owners of East Rand Mall to ensure that together we continue to bring shoppers the best experience and choice."

He adds that the professional team's pioneering efforts in reducing the malls lettable area, whilst increasing its profitability during construction was a noteworthy achievement.

Let's do Biz