The Sunday News
COMPLETION of Bulawayo’s first anticipated internationally acclaimed eye-catching state-of-the-art major infrastructural project in the Central Business District, the Bulawayo Centre Shopping Mall hangs in the balance owing to the economic situation prevailing in the country, an official said.
Work on the property, which is owned by the National Railways of Zimbabwe Contributory Pension Fund (NRZCPF) started with the construction of Bulawayo Centre in 1994. The first phase was completed in 1997 and comprises 55 shops on two levels and business suites on three levels. The second phase involved the redevelopment of Princess Court adjacent to the Centre into shops and business suites and this was completed in 2013 at a cost of about $10 million after work on the building had started the previous year.
The third and final phase with an initial estimated cost of $4 million, which was scheduled to start this year entails turning the ground and mezzanine of a building (formerly a gym) next to the Princess Court into a mall, to be named Buyani Mall.
The infrastructure is being managed by a leading Real Estate agent, Knight Frank.
“We have done Phase I and Phase II and we are waiting to do Phase III when things stabilise, let’s put it that way. We don’t have to worry about the capital that will be invested. We should worry about the returns, when there are few tenants that are going to afford. You will have to worry about where you are going to get the tenants.” said Knight Frank managing partner and Real Estate Agent chairman Mr Oswald Nyakunika.
He said rentals and disposable income were coming down while construction costs remained stagnant, a situation which was discouraging for property owners to invest in infrastructural developments.
“You will have to worry about the tenants and the returns. The rentals are coming down. Are costs coming down as well? Not so fast. So we have a situation whereby the cost of building has not suddenly come down but the rentals and income are coming down so as a result it’s a volatile situation. So you would rather wait until things stabilise. I think that’s the advice I will give my clients (NRZCPF) if I am asked,” Mr Nyakunika said.
He said upon completion Buyani Mall was expected to house 37 shops with internationally renowned fast foods and clothing retail outlets being targeted to set up their businesses there.
“The initial estimated cost for the work there was $4 million but I think it will be revised and I’m sure it’s likely to come down. We were looking at 30 to 37 shops on ground and first floor in what was formerly the gym.
“There are some retailers we would like to attract from South Africa especially internationally renowned food chains but it’s very difficult for them to come given the current economic situation. To me the future of this country lies in being able to attract more foreign investors to inject Foreign Direct Investments,” Mr Nyakunika said.
The whole development is to be linked by a flyover across 9th Avenue, to first floor Bulawayo Centre, a series of escalators and panoramic lifts. With the basement car parking, the connection to the Bulawayo Centre, according to the property developer, would assist in the circulation of shoppers throughout the whole centre.
“Phase III is the penultimate stage though from time to time there will be need for refurbishment again to inject new economic life to the infrastructure, it will because it will be tired or out of sink with current development.
“Of course one of the major attractions of this phase will be the pedestrian footpath flyover linking Buyani Mall to Bulawayo Centre, creating a panoramic view for people,” Mr Nyakunika said.
Zimbabwe Building Contractors Association president Mr Obert Sibanda concurred Mr Nyakunika’s sentiments that the cost of construction remained stagnant while rentals were dropping.
“By and large the costs of rentals depend on a demand and supply basis. You will find that property owners would rather lower their rentals and have more occupants in terms of tenants taking up space than have voids. Of course the cost of building is stagnant and sometimes it becomes high because of various issues, which include labour and other expenses,” he said.
Mr Sibanda said the completion of the Bulawayo Centre project was likely to attract investors culminating in the economical development of the City and the country as a whole.
“We would like to see more infrastructural development because if the economy is turning around this will attract investors and it will help develop the city. Looking into the future those embarking on such developments are likely to benefit when investors flock to invest in the country,” he said.
