Offshore Guidebook | Real Estate Investor Magazine Offshore Guidebook 2013 | Page 51

says Accra, the country’s capital, is the main retail hub for international retailers and home to the modern shopping malls in operation offering a diverse and buoyant informal retail landscape. He says A&C Square in 2005, followed by Accra Mall in 2007, set the pace for modern retailing. A&C Square in the East Legon area of Accra is largely a neighbourhood centre with a recent addition of substantial office space. Accra Mall changed the face of retail considerably with 21 000 square metres of lettable area, anchored by Shoprite and Game. “The success of A&C Square in East Legon has confirmed the need for neighbourhood retail centres in Accra.” Melcom and Maxmart, local general merchant retail stores, have capitalised on this emerging demand by opening stores in almost all the major areas of Accra. Koala, a local grocery retailer, has also responded to this trend by recently opening another shop in the Airport Residential Area to add to its flagship outlet in Osu. On a regional level, Kumasi and Takoradi, the next two most populous cities in Ghana, have no formal retail centres even though the fundamentals look right. There is a huge opportunity for first time movers to develop shopping centres in these regions, says Bobie. Space supply and development With Accra Mall and A&C being the only formal retail centres available in the market, occupancy rates are near 100 percent. Movenpick Hotel’s 2 000 square metre retail space offering 26 shop units is also fully occupied by a variety augment the current 30 000 square metres of formal retail space. Since the completion of Accra Mall in 2007, surprisingly no formal retail shopping mall has been built. However, a number of small to medium schemes are under construction in Accra, including retail and office developments of Marina Mall, Nester Square, One Airport Square and Icon House in the Airport area, The Octagon in Ridge plus the Oxford Street Mall and hotel development in Oxford Street, in Osu. Menson says notable inclusions are Oxford Street Mall and Marina Mall, which are both expected to complete in the coming months, and One Airport Square, an ambitious Green Star compliant project that will set the bar for environmental standards. In addition, numerous pipeline projects are in the planning stages. These include some sizeable developments: West Hills, Project Sunrise and Gold Coast City in Accra, Apolonia in Tema, King City in Takoradi (all mixed-use developments), Accra Mall extension retail development in Accra, and various developments in Kumasi. West Hills Mall, if completed by 2014, is anticipated to be the largest purpose-built mall in Accra offering about 26 000 square metres. Bobie says the retail occupier market has transformed in the last seven years with the entry of international retailers such as Shoprite, Game, Bata, Hi-sense, Mr Price, Woolworths, TM Lewin and Stellar Deluxe, while KFC and Deli France are recent new additions to enter the Ghanaian market. “South African retailers currently dominate the of boutique shops while Shoprite’s solus unit on the western corridor of Accra is also self-occupied with no available space to let. “Although there is a high demand for retail space from both foreign and local occupiers, supply of space has been sluggish,” says Bobie. international retailers but there are clear signs that European and American retailers are also eyeing the market and with the right space we believe the market will become competitive and diverse in the very near future,” says Bobie. With a growing population of 2.5 million plus in Accra, the city has capacity for more retail centres to RESOURCES www.reimag.co.za Property24 Offshore Handbook 2013 49