Why and How to Invest in Retail Real Estate Developments in Africa
Although the Ukraine-Russia conflict and the related Russian sanctions have caused a ripple effect throughout the world, investing in retail real estate in Africa does provide multinational firms with opportunities to earn USD income from tenants in Africa.
Risk mitigation is always a priority for any type of investment. To this end, firms benefit from partnering with investment groups familiar with the return potential related to retail real estate in Africa.
A firm or group that also invests its funds in projects on the continent and is actively involved in new property developments and upgrading, shows its vested interest. They don’t just promote investment returns or project development, but show confidence in their recommendations, which should also be assuring for potential investors.
GREA is such a firm, with extensive project management and commercial real estate development experience, particularly on the African continent. The firm offers turnkey project management and construction services for retailers, as well as multinational corporations wishing to expand their operations to the African continent.
The Metroplex Shopping Centre in Kampala, Uganda is an example of the types of retail real estate projects in which GREA has been involved.
Metroplex Shopping Centre
The re-development site covers 25 090 square metres and the property boasts a GBA of 16 089 m² and GLA of 12 994 m², with as many as 255 parking spaces. The development commenced in August 2019 and was completed in September 2020. It boasts an efficiency rate of 81%.
Century Cinemax and Carrefour are the anchor tenants while DTB Bank, Aga Khan, and Woolworths rank among the sub-anchor tenants. With these leading brands among the anchor tenants, many other international retailer groups have been attracted to the mall and its tenant income potential.
Among these are well-known restaurant brands and several international coffee shops, as well as leading fashion brands.
The redevelopment has given the shopping centre a facelift to bring the design, layout and offerings in line with contemporary mall designs. It now includes a promotion court where producers can showcase new products, a brand-new atrium, new lifts, escalators, and a refurbished food court.
The improved convenience, a wider range of offerings, and inclusion of an exhibition area increase the attractiveness and convenience profile of the property. Several elements set the mall apart from other shopping facilities in Uganda. These include the cinema complex, the many parking bays, Wi-Fi for optimal connectivity that benefits retailers and shoppers alike, as well as children play areas located indoors and outdoors. The centre also boasts convenient banking facilities.
These features make the mall a suitable shopping destination for families and business people alike. Accessibility is essential for retail success. With this in mind, a new access road has been constructed to ensure accessibility from Spine and Zebra Roads.
Interested in Investing in Retail Real Estate Developments in Africa?
Firms interested in expanding their footprint to the African continent or wanting to gain investment exposure can do so with confidence, knowing that GREA has the expertise to assist. Connect with GREA to discuss potential investment and development opportunities in Africa.