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Soshanguve Doreen Rd 08v

3546

PREPARED BY:

DR DIRK A PRINSLOO

SOSHANGUVE SOUTH
DOREEN ROAD

FOR

TRITAN DEVELOPMENTS

MARCH 2008
2

INDEX

EXECUTIVE SUMMARY .............................................................................................................. 1

1. BACKGROUND .................................................................................................................... 3

2. RESEARCH OBJECTIVES .................................................................................................... 3

3. RESEARCH METHODOLOGY .............................................................................................. 4

4. CATCHMENT AREA, POPULATION NUMBERS, GROWTH & PROJECTIONS ..................... 4

5. SOCIO-ECONOMIC AND DEMOGRAPHIC PROFILE ........................................................ 10


5.1 Profile – Census Information .................................................................................... 10
5.2 Profile – Urban Studies’ databank............................................................................. 14
6. RETAIL FACILITIES AND SHOPPING PATTERNS & BEHAVIOUR .................................. 15
6.1 Retail facilities ......................................................................................................... 15
6.2 Shopping patterns and behaviour ............................................................................. 16
7. EXPENDITURE LEVELS .................................................................................................... 19

8. NEW DEVELOPMENTS...................................................................................................... 19
8.1 Industrial development ............................................................................................ 19
8.2 Retail development ................................................................................................. 20
8.3 Roads and infrastructure ......................................................................................... 21
8.4 Residential development .......................................................................................... 21
9. SITE EVALUATION ........................................................................................................... 24
9.1 Meso environment or broader area........................................................................... 24
9.2 Micro location ......................................................................................................... 24
10. DEVELOPMENT POTENTIAL ............................................................................................ 27

11. CONCLUSION AND RECOMMENDATIONS ...................................................................... 28

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EXECUTIVE SUMMARY

Research objectives • To analyse the market and to indicate the potential for a retail
centre at this particular location.

Catchment area • 127 000 households in the broader area.


Population numbers • 41 000 households in the primary trade area (±5km radius)
Growth & projections • 54 000 households in the primary and secondary trade areas (±8 km
radius).

Socio-economic and • Younger age profile, 34% employed mainly in low skilled occupations
demographic profile and 48% part of LSM 1-4
• Average age 38 years, mainly Tswana and Sotho speaking, 41%
earning R5 000-R10 000 per month with an average household
income of R9 500.

Shopping patterns and • The strength of Wonder Park centre is very clear, especially after the
retail facilities recent expansion.

Expenditure levels • Representative of LSM 4 – 7 households (Table 7.1).

New developments Industrial


• Currently ±65 000 workers in the Rosslyn area.
• The whole area west of Doreen Road and north of Supply Park has
been zoned for future industrial development. It is estimated that
13 000 new jobs will be created within the next 3-8 years, depending
on prevailing economic conditions.
Retail
• Existing retail facilities as well as future retail development in the
area.
Residential
• The area will increase by another 80 000 households within the next
20 – 30 years. This will influence the potential for retail facilities in
future.

Site evaluation • This sector of Greater Tshwane is showing tremendous growth which
will continue for the next 10 – 15 years.

Development potential • Primary catchment area focusing on the southern suburbs of


Soshanguve as well as households from Mabopane forming part of a
secondary catchment area.
• The estimated number of households within the primary catchment is
50 000 housing units and 64 000 within the broader catchment area.
• Strong competition in the northern part of Soshanguve as well the
strength of Wonderpark Shopping Centre as indicated in this report.
• Expected growth in the immediate vicinity of the proposed site. This
will include 4 300 housing units in the immediate vicinity as well as a
further 60 000 units within the broader area. A further 65 000
housing units will be built within the next 20 – 30 years.
• The growth of the city will experience the amalgamation of the
Rosslyn and the Soshanguve area.

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Conclusion • Very strong residential growth over the next at least 10 years.
• The proposed site will become more centrally located, instead of in
the southern tip of the residential area.
• The presence of a large job creator like Rosslyn will increase job
opportunities for this area during the next 10 years.
• The proposed centre will experience strong competition from
Wonderpark Shopping Centre as well as from centres to the north of
Soshanguve.
• It is recommended not to over-build the centre and to build it in
phases.
• A centre of 32 000m² could be warranted currently.
• The centre must address the specific needs of the shoppers in the
area.
• The centre must be positioned to cater for LSM 5 – 8 shoppers.
• The centre must not focus on too many exclusive stores.
• Good growth potential exists once the area has been filled up.
• A “follow the roofs” strategy should be followed.

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MARKET RESEARCH REPORT

SOSHANGUVE SOUTH
DOREEN ROAD

1. BACKGROUND

The proposed site forms part of a large area earmarked for further residential
development and is located 2,9 km north of Rosslyn on the M20 road. This area forms
part of the Greater Rosslyn industrial area as well as residential facilities directly to the north
of the site, including Hebron and Soshanguve South. The area is earmarked for major
residential development with up to 20 000 lower and medium cost houses.

The purpose of this report was to analyse the market and to indicate the potential for a
retail centre at this particular location.

2. RESEARCH OBJECTIVES

The main objectives of the research were the following:

• demarcation of the expected trade area of a centre at this location;

• the total number of households living within this area and the estimated
population in the area;

• the residential growth experienced in the area during the past few years as
well as projected growth;

• proposed developments envisaged for the area (including residential, roads


and other developments);

• the demographic and socio-economic profile of the people living in the area;

• the current shopping behaviour of the people;

• the monthly level of expenditure on specific product categories;

• a site evaluation was conducted including aspects like location, access,


visibility, future development, competition, topography;

• competing retail facilities located in the area and the tenant mix in these
centres, and

• any other aspects that might impact on the performance of the proposed
centre were highlighted.

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All this information culminated in an estimated turnover, warranted floor area


and a broad indication of the tenant mix.

3. RESEARCH METHODOLOGY

This is a so-called desk research and the following existing sources of information were
used:

• Stats SA 2001 Population Census, projected for 2008/10;


• Urban Studies’ databank 2005-2007;
• various websites;
• SA Council of Shopping Centres’ Shopping Centre Directory, 2006/7;
• interviews with:
− Mr Hannes Koster, town planner of Akasia Municipality, Tel 012 358 9095.
− Mr Danie Saayman, town planner from CityScope, Tel 083 579 3322.

4. CATCHMENT AREA, POPULATION NUMBERS, GROWTH &


PROJECTIONS

Table 4.1 gives an indication of the total number of households within the broader
Soshanguve/Mabopane area.

TABLE 4.1
TOTAL POPULATIONAND NUMBER OF HOUSEHOLDS
IN THE BROADER SOSHANGUVE/MAPBONE AREA

Number of Number of
people in households in
broader area broader area
Total 504,846 127,209
2% Growth 2008 579,909 146,123
2% Growth 2012 615,404 155,067
4% Growth 2008 664,343 167,398
4% Growth 2012 747,295 188,300
Source: Stats SA Census 2001 projected for 2008/12

The large number of people living in this sector of Greater Tshwane is clear from this table.

The proposed site is located more to the south with most expected support from Soshanguve
South (See Table 4.2) and the areas to be filled in between Rosslyn and Soshanguve.

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TABLE 4.2
TOTAL POPULATION
AND NUMBER OF HOUSEHOLDS IN PRIMARY TRADE AREA
(5 KM RADIUS)

Number of Number of
Main-Place Sub-Place people households in
Primary trade Primary trade
area area
Akasia Onderstepoort Nature Reserve 499 91
Akasia Rosslyn 184 80
City of Tshwane Metro Onderstepoort SH 773 202
City of Tshwane Metro Pretoria NU 16069 5118
City of Tshwane Metro Wonderboom NU 23346 6034
Ga-Rankuwa Ga-Rankuwa Zone 2 5907 568
Pretoria Onderstepoort 258 26
Soshanguve Itumeleng 2148 595
Ga-Rankuwa Tsebe 5494 1659
Ga-Rankuwa Hebron 1229 338
Soshanguve Soshanguve South 1420 411
Soshanguve Soshanguve SS 25641 7444
Soshanguve Soshanguve T 6185 1758
Soshanguve Soshanguve TT 7403 2023
Soshanguve Soshanguve UU 4060 1182
Soshanguve Soshanguve V 8759 2446
Soshanguve Soshanguve W 7957 2017
Soshanguve Soshanguve WW 11316 3283
Soshanguve Soshanguve X 12769 3427
Soshanguve Soshanguve XX 5135 1598
Soshanguve Soshanguve Y 4292 1152
Total 150 844 41 452
2% Growth 2008 176 738 48 568
2% Growth 2012 187 556 51 540
4% Growth 2008 206 440 56 730
4% Growth 2012 232 217 63 813

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TABLE 4.3
TOTAL POPULATION AND NUMBER OF HOUSEHOLDS
IN PRIMARY AND SECONDARY TRADE AREAS
(8 KM RADIUS)

Number of Number of
Main-Place Sub-Place people in 8 households
km radius 8 km radius
Soshanguve Soshanguve South 1420 411
Soshanguve Soshanguve SS 25641 7444
Soshanguve Soshanguve T 6185 1758
Soshanguve Soshanguve TT 7403 2023
Soshanguve Soshanguve UU 4060 1182
Soshanguve Soshanguve V 8759 2446
Soshanguve Soshanguve W 7957 2017
Soshanguve Soshanguve WW 11316 3283
Soshanguve Soshanguve X 12769 3427
Soshanguve Soshanguve XX 5135 1598
Soshanguve Soshanguve Y 4292 1152
Akasia Onderstepoort Nature Reserve 499 91
Akasia Rosslyn 184 80
City of Tshwane Metro Onderstepoort SH 773 202
City of Tshwane Metro Pretoria NU 16069 5118
City of Tshwane Metro Wonderboom NU 23346 6034
Ga-Rankuwa Ga-Rankuwa Zone 2 5907 568
Pretoria Onderstepoort 258 26
Soshanguve Itumeleng 2148 595
Ga-Rankuwa Tsebe 5494 1659
Ga-Rankuwa Hebron 1229 338
Mabopane Itsoseng 6130 1734
Mabopane Soshanguve South 1231 421
Mabopane Soshanguve TT 6358 1801
Ga-Rankuwa NONE 12 4
Ga-Rankuwa Ga-Rasai 512 141
Ga-Rankuwa Ga-Tshefoqe 1149 272
Ga-Rankuwa Jakkalas 2583 593
Ga-Rankuwa Klipgat 5061 1289
Ga-Rankuwa Klipvoor 395 124
Ga-Rankuwa Letlhakaneng 3331 793
Ga-Rankuwa Makanyaneng 22202 5120
Ga-Rankuwa Mapoch 942 253
Ga-Rankuwa Masoga 1223 268
Ga-Rankuwa Wilgekuil 0 0
Ga-Rankuwa Winterveld 124 37
Total 202 097 54 302
2% Growth 2008 236 789 63 623
2% Growth 2012 251 282 67 518
4% Growth 2008 276 584 74 316
4% Growth 2012 311 119 83 595
Source: Stats SA Census 2001 projected for 2008/12

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Photo 4.1: Macro Location of Soshanguve Doreen

Soshanguve

Hebron

Proposed
site

Ga-
Rankuwa Rosslyn

Strydfontein

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Photo 4.2: Micro Location of Soshanguve Doreen


Soshanguve

Proposed
site

Residential
Growth

Ga-
Rankuwa Rosslyn

Strydfontein

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5. SOCIO-ECONOMIC AND DEMOGRAPHIC PROFILE

Mainly two sources were used to get a better understanding of the socio-economic and
demographic profile of a particular area namely:

• Stats SA Population Census 2001, giving an indication of the socio-economic


and demographic profile of the households. This is still regarded as the most
important source of information and adjustments are made annually to update
the monthly household income figures. This is based on Stats SA average salary
increases and South African Reserve Bank projections;

• studies undertaken by Urban Studies in this or similar areas over the last 5 years.
This information is normally based on surveys conducted at different centres or at
households in the broader area. These samples are normally representative of the
more affluent sector of the market compared to the Census information, focusing
on the total market.

5.1 Profile – Census Information

According to Table 5.1 and the associated graphs note the following:

AGE GROUPS

45 40
40
35 30 40% of the population is younger than 20
30
23 years, indicating a young age profile.
25
20
15
10 7
5
0
<19 years 20 to 34 35-54 55+

POPULATION GROUP

100
100
90
80
All the residents in this area are black.
70
60
50
40
30
20
10 0 0 0
0
Black Coloured Asian White

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EMPLOYMENT STATUS

40 37
34
35 30
30 Of the economically active people 34%
25 are employed. This indicates a higher
20 than normal employment level, indicating
15
10
the role of the Soshanguve and Rosslyn
5 vicinity.
0
Employed Unemployed Not economically
active

OCCUPATION GROUPS

34% are employed in white collar and


50 45
45 21% in blue collar occupations.
40 34
35 The most important sectors are
30
25 21 community facilities (20%) including
20 schools, hospitals and other medical
15 facilities. 27% are employed in the
10
5 retail/wholesale sector and 13% in
0 manufacturing.
White Collar Blue Collar Low Skilled

EDUCATION
Higher 8
33% have matric and higher
Std 10/Grade 12 25 qualifications.
Some secondary 33
Complete primary 7
Some primary 15
No schooling 13

0 10 20 30 40

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ANNUAL HOUSEHOLD INCOME


40
35
30 25
23 24 The median household income is
25
18 17
between R3 000 and R5 000 per
20
15
month.
10 7 8
5 2 0 0 0 0
0

R2457600+
R19201-38400

R38401-76800
No income

R1228801-
R4801-9600

R153601-

R307201-

R614401-
R76801-153600
R9601-19200
R1-4800

1228800
307200

614400

2457600
LSM GROUPS

30
24 24 25
25
20 48% forms part of LSM1 1 – 4 and 27%
14 part of LSM 7 – 10. This clearly
15 13
indicates the increase in the emerging
10
middle market.
5
0
LSM 1-3 LSM 4 LSM 5-6 LSM 7-9 LSM 10

DWELLING UNITS
Caravan/tent/other 0
Room/flat on shared property 0
61% of the total population live in
Informal unit not in back yard 29 formal houses.
Traditional/informal dwelling 7
House in back yard 3
Townhouse 0
Flat in block 0
House 61

0 20 40 60 80

1
LSM = Living Standard Measurement – a classification used countrywide by all marketers. The income per LSM category
reflects the monthly household income.
(LSM 1 = deep rural, LSM 10 = affluent)
LSM 1 – 4 = <R800 – R3 000 / LSM 5 – 7 = R3 001 – R8 000 / LSM 8 – 9 = R8 001 – R20 000
LSM 10 = R20 000+

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TABLE 5.1
SOCIO-ECONOMIC AND DEMOGRAPHIC PROFILE

Soshanguve Soshanguve
Age Groups % Individual Monthly Income %
<19 years 40 No income 2
20 to 34 30 R1-400 7
35-54 23 R410-800 17
55+ 7 R801-1600 31
Population Groups R1601-3200 26
Black 100 R3201-6400 14
Coloured 0 R6401-12800 4
Asian 0 R12801-25600 0
White 0 R26501-51200 0
Language Groups R51201-102400 0
Afrikaans 0 R102401-204800 0
English 0 R204801+ 0
African 99 Annual Household Income
Other 0 No income 23
Employment R1-4800 7
Employed 34 R4801-9600 18
Unemployed 30 R9601-19200 24
Not economically active 37 R19201-38400 25
Occupation R38401-76800 17
Legislators, officials and managers 3 R76801-153600 8
Professionals 5 R153601-307200 2
Technicians 10 R307201-614400 0
Clerks 13 R614401-1228800 0
Service 14 R1228801-2457600 0
Skilled agriculture 0 R2457600+ 0
Crafts/trade 16 Median hh income 2001 20737
Plant and Machinery 10 Median hh income 2008 35540
Elementary occupations 25 Median hh income pm 2008 2962
Undetermined 5 LSM Groups
Occupation LSM 2-3 24
White Collar 34 LSM 4 24
Blue Collar 21 LSM 5-6 25
Low Skilled 45 LSM 7-9 13
Sector LSM 10 14
Agriculture 1 No of people in sub place 65587
Mining 0 No of hh in sub place 17535
Manufacturing 13 Dwelling Unit
Electricity 1 House 61
Construction 7 Flat in block 0
Retail/Wholesale 19 Townhouse 0
Transport 7 House in back yard 3
Financial/Insurance 8 Traditional/informal dwelling 7
Community 27 Informal unit not in back yard 29
Other 0 Room/flat on shared property 0
Private household 10 Caravan/tent/other 0
Undetermined 7
Education
No schooling 13
Some primary 15
Complete primary 7
Some secondary 33
Std 10/Grade 12 25
Higher 8
Source: Census 2001, adjusted for 2008

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5.2 Profile – Urban Studies’ databank

These graphs reflect the more affluent households in the Soshanguve area.

DEMOGRAPHICS
60
51
50
41 39
40 37

28 30
% 30
20
20
14 12 10
10 5 4 3 3
1 1 1
0
Tsw ana

Sw azi

Young
Vendor
Afrikaans
Sotho

Xhosa

Full nest
Zulu

English

Empty nest
Ndebele
18-24

25-34

35-49

50-65

65+

Age (years) Home language Life Cycle


Average: 38 years

SOCIO- ECONOMIC PROFILE


45 41
40
35
30 26
25
% 19 19
20 17 17
15
15
9 9 9
10 6
5 5
5 3
0
<3 3-5 5-10 10-15 15-20 20+ LSM LSM 4LSM 5LSM 6LSM 7LSM 8LSM 9 LSM
1-3 10

Total monthly household income LSM Profile


Average: R 9 500
Median: R 9 900

Younger age profile, 34% employed mainly in low skilled occupations and 48%
part of LSM 1-4
Average age 38 years, mainly Tswana and Sotho speaking, 41% earning R5 000-
R10 000 per month with an average household income of R9 500.

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6. RETAIL FACILITIES AND SHOPPING PATTERNS & BEHAVIOUR

6.1 Retail facilities

For years the only major shopping centre in this area has been Central City in Mabopane at
52 000m² with major anchors like Shoprite, Score and Clicks. This centre was built in 1996
and consists of 90 shops. A new centre has recently opened in Soshanguve called
Soshanguve Plaza (±20 000m²).

TABLE 6.1
EXISTING RETAIL FACILITIES IN THE BROADER AREA

Centre GLA City Suburb


Madelief Shopping Centre 5971 Tshwane Dorandia
Wonderpark Shopping Centre 60933 Tshwane Karen Park
Nina Park 5800 Tshwane Nina Park
Northpark Mall 36000 Tshwane Pretoria North
Shoprite Centre - Pretoria North 6324 Tshwane Pretoria North
De Jongh Centre 3000 Tshwane Pretoria North
Rosslyn ABSA Forum 2151 Tshwane Rosslyn
Wonderboom Plaza 4000 Tshwane Wonderboom
Central City 52000 Tshwane Mabopane
Konanong Plaza 8861 Tshwane Hammanskraal
Mabopane Sun Plaza 3000 Tshwane Mabopane
Soshanguve Plaza 20000 Tshwane Soshanguve
GaRankuwa Centre ±18 000 Tshwane GaRankuwa
Source: SA Council of Shopping Centres’
Shopping Centre Directory 2006/7

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6.2 Shopping patterns and behaviour

These graphs reflect the shopping patterns of residents in the Soshanguve South area.

Groceries

• 92% of the shoppers prefer to buy groceries at Pick ‘n Pay.

GROCERIES
100 92 89
90
80
70
60
% 50
40
30
20
10 5 2 2
0
Pick'n Pay Shoprite Hyperama Wonderpark Mayville

Clothing and shoes

• A wide variety of stores is supported with Edgars the most popular at 28%,
Truworths at 15% and Woolworths at 12%.
• 88% conduct their clothing shopping at Wonderpark. There is very little outflow
to Pretoria CBD and Kolonnade.

CLOTHING & SHOES


100 88
90
80
70
60
%50
40 28
30 15 12 9
20 6 5 5 4 3 4 2
10
0
Foschini
Jet

Ackermans

Milady 's
Edgars

Markhams

Mr Price

Kolonade
Woolworths

Wonderpark

Pretoria CBD
Truworths

Most important shops supported Most important


locations supported

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Homeware and linen

• Mr Price Home, Ackermans and Woolworths are the three most important homeware
stores.
• 90% of the respondents support these stores at Wonderpark.

HOMEWARE & LINEN


100 90
90
80
70
60
% 50 33
40
30 20 15
20 10 6 4 4
10 2
0

Wonderpark

Kolonade
Mr Price Home

Woolworths

Game

Pretoria CBD
Ackermans

Edgars

Sheet Street

Furniture and appliances

• A wide variety of furniture stores is supported.


• Pretoria CBD is the most important destination (51%) and only 28% support
Wonderpark.

FURNITURE & APPLIANCES


60 51
50
40 28
%30
16 16 15
20 8 6 5 5 3 3 3 3 5 3 3
10
0
Lew is
Bradlow s

Wonderpark

Menlyn
Joshua Doore
Game

Pretoria CBD
Beares

Russells

Senex

Montana
Clicks

Pretoria North
Morkels

Geen & Richards

Furniture City

Most important shops supported Most important


locations supported

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Restaurants and fast food outlets

• The eating places supported are Wimpy, Steers, Spur and KFC.
• 87% support these facilities at Wonderpark.

RESTAURA NTS & FAST FOOD OUTLETS


100 87
90
80
70
60
% 50
40 30
30 21
20 13 10 7 3 3 4 2 2
10
0

Wonderpark

Kolonnade
House of Coffee
Spur

KFC
Steers

Nando's

Menlyn
Mike's Kitchen

Pretoria CBD
Wimpy

Entertainment

• Cinemas are supported as the main form of entertainment.


• Wonderpark is supported by 93%.

ENTERTAINMENT
100 93
86
90
80
70
60
% 50
40
30
20 13
10 3
0
Cinema Music Wonderpark Menlyn

Most important entertainment Most important locations


supported supported

From all this information the strength of Wonder Park centre is very clear,
especially after the recent expansion.

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7. EXPENDITURE LEVELS

The profile is mainly representative of LSM 4 - 7. Table 7.1 gives an indication of the monthly
expenditure levels on consumer products of these households.

TABLE 7.1
AVERAGE MONTHLY SPENDING
ON CONSUMER GOODS
(R)

Product LSM 8-9 LSM 6-7 LSM 4-5


Categories B-Income C-Income D-Income
Bulk groceries 2550 1150 550
Supplementary groceries 580 360 180
Clothing and shoes 550 450 290
Furniture & appliances 170 130 180
Household goods 360 210 150
Takeaways/restaurants 480 220 120
Entertainment 300 150 75
Other 730 490 240
Source: Urban Studies 2007/8

8. NEW DEVELOPMENTS

Contact Person: Mr Hannes Koster, Town Planner of Akasia Municipality


Mr Danie Saayman, Town Planner from CityScope

The site is located 2,9 km from the robot on the corner of the R566 and Doreen Road and
the M20 in Rosslyn in a northern direction.

8.1 Industrial development

There are ±65 000 workers in Rosslyn.

Supplier Park: This industrial initiative took long to establish itself in the bigger Rosslyn
area, but started to grow recently with a few new tenants like Tata. No new applications
have been received lately. There are only a few smaller tenants that showed interest. There
are renewed plans to reposition and market this area.

The whole area west of Doreen Road and north of Supply Park has been zoned for future
industrial development. It is estimated that 13 000 new jobs will be created within the next
3-8 years, depending on prevailing economic conditions.

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8.2 Retail development

The existing retail in the area consists of:

• The Spar Centre in Rosslyn (±5 km from the site) on the R566 towards the west,
which is very busy.

• The Garankuwa centre is 16 km from the western side of the site.

• Central City (52 000m²) is 12 km from the site.

TABLE 8.1
CENTRAL CITY – TENANT LIST

Banks Food & Restaurants Furniture & Electrical


ABSA Bank Bakery Dunns
African Bank Pie City Best Electrical
African Bank Butchery Score
Capitec KFC Shoprite
FNB Wimpy Giddy's Electric Express
Peoples Bank Hungry Lion Beares
Standard bank Bulldogs Fair Deal
Credit Indemnity Chicken Licken Ellerines
Rainbow Loans Jeweller Price & Pride
Clothing American Swiss Morkels
Ackermans Arthur Kaplan Lewis Stores
Dan Hands Sterns Railway Furnishers
Exact Watch Centre Service
Foschini Other Dental
Jet Store Express Store Drycleaners
John Craig Beaver Canoe financial Services
Markhams Indian Store Fotocall
Mr Price Rite Price Hair Salon (3)
Patrick Daniel Book shop Multiserve
Pep Store Dumela Shop Optometrist
Sales House Lorraine Ratsotso Cell phones & TV
Smart Centre Cardies Teljoy
Topics Kwik 5 Channel cellular
Total Sport Sound Waves MTN
Truworths Good Times Beauty & Health
Versani Shoes Street Beat Clicks
Webbers Diskom
Pharmacy

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New Retail planned

• Proposed retail development of 15 000m² next to the Kopanong Station on the


Pretoria North/Mabopane Road. The land is owned by Council.

• Investigation for Soshanguve Ext 8 (with farm areas in between) just northwest of
the site for 5 000m². This is the site next to the road that stops in the middle of
nowhere.

• Further to the northwest an investigation for retail on the south-western corner of


Doreen (M20) cnr M17 (12 000m²)l.

8.3 Roads and infrastructure

• A road will be built together with a traffic circle or robot to divert traffic into the
site.

• The K6 provincial road to the south of the site is planned to connect with R80 in
future. This is not a priority with Gautrans and could take several years to be built.
This proposed road runs through the southwestern part of the land. See map 8.1.

• The R80 is a very busy road connecting Pretoria and Rosslyn with Soshanguve –
34 000 vehicles counted on this road per day.

• The Engen Garage pumps 500 000 – 600 000 litres per month which is a good
indication of a very busy road.

• The sewerage system was upgraded in 2002 and the water pipes in 2004.

8.4 Residential development

• 137 ha available for residential development – 4 300 units are being


planned for this area directly around the site.

• According to the residential report from ABSA there is a total undersupply of


residential units in the area.

• The Akasia Municipality is planning ±20 000 RDP houses in the area. Some of
these applications have been approved, while the others have been received. This is
a 3 – 8 year project.

• No residential development directly to the east of the proposed site, but a large
number of existing rural residential units to the northwest, north and northeast of the
site. See map 8.1.

• The land directly to the west of the site is owned by the Municipality.

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• The land further to the west (adjacent to that of the municipality) is earmarked for
6 000 housing units.

• Adjacent to the site to the east of the railway line Safrich is planning ±60 000
housing units over the medium term. A few of these houses have been completed,
and the whole project will be phased.

• The most exciting project is for the middle income Inkwe Development south of the
R566 and west of Ernest Oppenheimer Road. In total 865 houses will be built of
which ± 60-70% has been completed.

From all this it is clear that the area will increase by another 80 000 households
within the next 20-30 years. All this will influence the potential for retail
facilities in future.

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Map 8.1: New Residential Growth

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9. SITE EVALUATION

A site evaluation is normally conducted on two levels namely:

• meso environment or the broader area and


• the micro location.

9.1 Meso environment or broader area

The broader area is characterised by the following:

• close proximity to Rosslyn industrial area;


• new growth foreseen for Rosslyn as well as Supplier Park;
• an estimated 65 000 workers in the Rosslyn area;
• very strong middle and upper middle residential growth to the west and the north of
Rosslyn;
• the strength of Wonderpark Shopping Centre as a new regional mall at 61 000m²;
• very good road upgrades and improvements with the N4;
• high residential growth expected for the whole area north of the proposed site;
• a strong future market.

This sector of Greater Tshwane is showing tremendous growth which will


continue for the next 10 – 15 years.

9.2 Micro location

• General accessibility
− highway road access – in close proximity to the N4 which is close to the site
− arterial roads – the site located on the M20 which is a major north/south feeder
road. It is also important to note the proximity to the R80. The site offers very
good accessibility
− local roads – will be developed and upgraded
− travel barriers – except for the roads, no major barriers
− socio-economic changes – mainly an upgrade in LSM profiles because newer and
better houses. The move is from LSM 4 -5 to LSM 6 - 8
− availability of public transport – mainly train, bus and taxi
− motor car ownership – currently ±60% of the households, will increase in future
to 1 car per household

• Visibility
− from which direction – north and south
− from what distance – long distance visibility
− obstructions - none
− topography - flat

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• Type of location
− metropolitan township – with excellent future growth prospects

• Adjoining uses
− complementary – mainly further residential development as well as a large
number of factories which will take up residential units in the area
− competing facilities – mainly Wonderpark Shopping Centre to the south and
centres much further to the north (15+ km)
− not complementary – industrial area, but will offer job opportunities and increase
the demand for residential facilities
− positive or negative – the upgrades in the area are all positive for further retail
development
− changes over time (medium term) – strong residential growth, improvement of
roads and a positive view
− site access – will have to be created

• Passing traffic
− traffic volumes – already high on the M20 (see photographs)
− too much/too little? – currently enough to be handled
− character of traffic – mainly passenger and taxi vehicles
− daily flows - high
− average speed – 40 – 70 km per hour

Very good road infrastructure all around


the proposed site.

Main Road passing the site

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Site located to the right – Rosslyn 2,6km


further to the south.

High traffic volumes in front/close to the


site

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10. DEVELOPMENT POTENTIAL

The development potential will mainly be determined by the following:

• primary catchment area focusing on the southern suburbs of Soshanguve as well as


households from Mabopane forming part of a secondary catchment area;

• the estimated number of households within the primary catchment is 50 000 housing
units and 64 000 within the broader catchment area;

• strong competition in the northern part of Soshanguve as well the strength of


Wonderpark Shopping Centre as indicated in this report;

• expected growth in the immediate vicinity of the proposed site. This will include
4 300 housing units in the immediate vicinity as well as a further 60 000 units within
the broader area. A further 65 000 housing units will be built within the next 20 – 30
years;

• the growth of the city will experience the amalgamation of the Rosslyn and the
Soshanguve area.

The development potential is reflected in Table 10.1.

TABLE 10.1
DEVELOPMENT POTENTIAL

2008 2012/13
Product Warranted % of Total Warranted % of Total
Categories Space Floor Area Space Floor Area
(GLA) (GLA)
Groceries 4246 13 5702 14
Clothing and shoes 8156 26 10371 25
Furniture and appliances 3931 12 4940 12
Household goods 4787 15 6174 15
Restaurants and take-aways 940 3 1328 3
Entertainment 0 0 0 0
Other 8824 28 11512 28
Banks/Services 1000 3 1000 2
Total area warranted 31 884 100 41 028 100
Expected turnover p.a. R590 million R771 million

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11. CONCLUSION AND RECOMMENDATIONS

From the above mentioned it is clear that the following will definitely take place in this area:

• very strong residential growth over the next at least 10 years;

• the proposed site will become more centrally located, instead of in the southern tip of
the residential area;

• the presence of a large job creator like Rosslyn will increase job opportunities for this
area during the next 10 years;

• the proposed centre will experience strong competition from Wonderpark Shopping
Centre as well as from centres to the north of Soshanguve;

• it is recommended not to over-build the centre and to build it in phases;

• a centre of 32 000m² could be warranted currently;

• the centre must address the specific needs of the shoppers in the area;

• the centre must be positioned to cater for LSM 5 – 8 shoppers;

• the centre must not focus on too many exclusive stores;

• good growth potential exists once the area has been filled up;

• a “follow the roofs” strategy should be followed.

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