Despite talk of an increasing oversupply of office and retail space in many South African urban areas, commercial property developers and financiers continue to be on the prowl for undersupplied gems across the country.

And that search has pointed developers to KwaZulu-Natal’s rapidly-growing town of Umhlanga.

Nedbank is financing one of the biggest projects that will open its doors in November this year in Umhlanga Ridge, a stone’s throw away from SA’s largest shopping mall Gateway Shopping Centre.

The 40 000 square metre development – called Park Square – which will offer a mix of office and retail space – has been nearly two years in the making in a sought-after area that is fast becoming a vital retail and transportation hub.

Nedbank was one of the early backers of Umhlanga Ridge well before it was widely recognised as a sought-after node. 

The master plan for the R1 billion development is to build 36 000 square metres of P and A Grade (considered quality) office space that will span five blocks while the remaining 4 000 square metres of retail space will be on the ground level.

Nedbank will occupy approximately 50% of the office space and private vault operator International Bank Vaults will also call Park Square home. Food retailer Spar has been signed as a major tenant, occupying 1 500 square metres of the retail space at Park Square. The remaining retail space will be taken by restaurant chains, a gym and small businesses including a hair salon and a health shop.

“The population density in that area is growing and there is a lot of high-density residential planned. Residents wouldn’t want to go too far for shopping, which will drive them to our retail offering,” said Ken Reynolds, director of Nedport Developments (a subsidiary of Nedbank).

With six months remaining before its doors open, Reynolds said Park Square is already 60% let.

This is no small feat given that landlords are struggling to get commitments to new developments due to the relentless supply of new office and retail space at a time when SA’s economy remains sluggish.

“In our view, Park Square is going to be the best quality development in Umhlanga, which is a growth node. There is strong demand for office space that offers ancillary services, convenience retail space, and entertainment in the node,” said Reynolds.

But this is no ordinary development. 

Many recently-launched, mixed-use developments, which purport a work and play lifestyle, have lacked a social component or have remained an exclusive domain of wealthy individuals.

Reynolds said this won’t be the case with Park Square, as it will be easily accessed by everyone. Making this possible is that the location of the mixed-use project will not only be accessed by individuals using private vehicles but it will be supported by a strong public transport network.

Umhlanga is part of the eThekwini Municipality’s new integrated rapid public transport network that is currently under development and the first routes to be piloted will be as soon as this year with the uMhlanga C9 route activation planned for mid 2020.

The plan by the municipality is to launch transport corridors, which will feature GO!Durban bus routes, that will link Umhlanga to surrounding Durban CBD, KwaMashu, the planned Cornubia hub, Pinetown, and Umlazi.

Park Square is located 200 metres from a GO!Durban corridor, meaning the development will be easily accessible by bus. This will address a challenge that cities across SA are grappling with: linking areas on the outskirts to economic nodes so that locals can reduce their time of travel from home to their workplaces.

Reynolds said Park Square will be easily accessed by individuals with private vehicles as there are a number of road infrastructure upgrades on the Umhlanga Ridge. The upgrades include refurbishments to main road intersections, a bridge being built that will link Umhlanga Ridge to the Cornubia hub, KwaMashu, and the Durban CBD.

Another social component of Park Square is its offering of green and open spaces as it’s adjacent to the CJ Saunders Park and features a public piazza.

Plans are afoot to also offer shared working spaces that could be used by individuals and small businesses.

Unlike developments that only offer large commercial rental spaces, Reynolds said Park Square’s offering is flexible as tenants can be offered office space that is little as 150 square metres. 

Reynolds said another top priority is for Park Square to feature art by local artists. And like many of Nedbank’s other development initiatives, the Park Square development will be eco-friendly and carry a 4-star Green Star rating.

Brought to you by Nedport Park Square.