Changes at Maerua Mall, Gustav Voigts ''Oryx Properties is ringing the changes at its Maerua Mall and Gustav Voigts shopping centres.
This includes a new gym, an increase in the generational capacity of a solar plant and a new food court at Maerua Mall, and the addition of a rooftop restaurant at Gustav Voigts. This was announced in a results review prepared by IJG Securities. “The Virgin Active facility is nearing completion and the tenant is expected to relocate before the end of the calendar year. This is an important development for the Maerua property as Virgin Active has agreed to a 10-year lease, providing stability and predictability of earnings for a large portion of gross leasable area.
“Similarly, the solar installation has proven to be a yield accretive addition to the mall [Maerua], yielding in excess of the expected 13%, and Oryx is exploring the possibility of increasing the output potential to 3 megawatts take further advantage of expected future tariff hikes,” IJG said.
“The new Virgin Active premises currently under construction at a development cost of N$80 million are sure to be a positive addition to the Maerua portfolio provided that the space currently occupied by this tenant is effectively utilised,” IJG said.
According to IJG, Oryx plans to turn the old Virgin Active gym into an entertainment and leisure space. Development of this space is expected to start early in 2017 and will include an upgrade or facelift to the food court.
“Panarotti''s is likely to return at some point in 2017 and a John Dory''s will complement the current tenant composition,” IJG said.
According to IJG, the Gustav Voigts upgrade has been in the works for a few years now and received the go-ahead after the end of the financial year. Quoting Oryx''s management, IJG said: “The upgrade will mostly entail cosmetic changes to the inside of the centre and a relocation of the Avani lobby area to the street front. Also included in the project will be a new rooftop restaurant and banqueting area for the hotel”.
These upgrades are to be complemented by the addition of two new parking decks. The whole project is budgeted at N$110 million and construction expected to start early in 2017, IJG said in its report.
Commenting on Oryx''s financial performance, IJG said: “Net rental income increased by 1.5% year-on-year to N$196.7 million, in stark contrast to the 19% increase in financial year 2015 as a result of a negative straight line basis adjustment, and higher than anticipated rental expenses. Rental expenses increased by 21% to N$91.5 million, close to, but exceeding [our] expectations. Oryx reported a profit of N$105.6 million for the period, down 45% year-on-year, as a result of lower valuation gains on the property portfolio which is reasonable in the current economic climate.”
STAFF REPORTER