Durban - The R120 million expansion of Liberty Midlands Mall is a further signal of Pietermaritzburg's growing economy since the city was reinstated as KwaZulu-Natal's capital.
Roger Corlett, the managing director of Liberty Properties, said yesterday that the go-ahead for the expansion "will sustain local construction industry jobs while promoting employment creation in the retail and service sectors".
The R270 million regional centre opened in late 2003 and shortly afterwards in 2004 Pietermaritzburg was reinstated as the provincial capital.
An expansion less than two years after the centre opened is a signal that Liberty Properties believes turnover growth will continue at present high levels.
The centre attracts 600 000 visitors a month and serves a catchment area that extends from Harrismith to Durban and Stanger to Underberg.
Corlett said: "Expansion of our Pietermaritzburg interests is a key element in Liberty Properties' drive to add further value to one of South Africa's best-performing property portfolios."
Liberty Properties, the property management and development arm of Liberty Group, manages a R12 billion portfolio of 67 strategically located buildings with a total gross leasable area of more than 2.1 million square metres.
It owns and manages a number of retail centres, including Nelson Mandela Square at Sandton City, Eastgate in Johannesburg and Greenacres in Port Elizabeth.
Corlett said: "We see 14 percent annual growth in the centre's foot traffic and an 84 percent rise in the year to June 2005 in the number of visitors to local entertainment and hospitality venues."
Liberty Midlands Mall has a gross leasable area of 39 000m2 and includes retail elements, a food court, cinemas and extensive parking.
The extensions will add about 30 000m2 to the centre. The retail component, which will grow by 13 000m2, will be taken up by fashion-orientated tenants, including Mr Price and Edgars.
About 1 200m2 of the expansion will accommodate four additional restaurants in the food court.
The total gross leasable area will cover about 56 000m2 when the extensions are completed in September next year.