Nedbank funds and buys stake in Makro Store Cape Gate

Font size: Decrease font Enlarge font
Opening Day Crowd at Makro Store Cape Gate (29 August 2012). Opening Day Crowd at Makro Store Cape Gate (29 August 2012).

A whole new world of shopping is in store for customers in the Northern Suburbs of Cape Town after Makro opened its doors yesterday.

Its new store is located on the corner of Okavango and Belami Roads, Brackenfell, conveniently accessible off the N1. With a trading area of 16 513 m² and 811 parking bays, Makro Cape Gate is a new "urban design store" which is very different from other Makro stores, featuring aesthetic changes which assist the store in blending into its urban surroundings.

Nedbank has further demonstrated its commitment to the retail sector by not only providing finance for this new Makro store, but also holding a significant equity stake through its Property Partners division.

Richard Thomas, regional executive: Nedbank Corporate Property Finance, Cape, notes that this is the first example of a Nedbank property partnership deal such as this. "As the market leader in the commercial property finance industry, Nedbank has provided the finance to Cape Gate Crescent Developments (Pty) Ltd for completion of the project.  Furthermore, Nedbank Property Partners holds an 85% stake in the development, with Eris Property Group (Pty) Ltd holding the remaining 15%," he says.

"Demand for a Makro trading store in the area is strong, evidenced by a very successful opening in Montague Gardens last October which resulted in record sales for the mass merchant."

Offering something unique to retail, commercial and reseller customers, Makro is owned by Massmart, a JSE listed company which is in turn 51% owned by Walmart. Makro currently has 16 stores countrywide including two stores in the Western Cape.

The Makro store layout comprises retail warehousing space, an open floor or trading area, a separate liquor store right next door to the main store, a butchery, food including groceries, fresh fruit and vegetables, and various other speciality departments, including technology, multi-media, outdoor and an office supplies component. 

The store has been built with the environment in mind which reduces its carbon footprint dramatically. Green aspects include abundant natural light to reduce the amount of electricity required, motion sensors in all the offices and storage rooms which reduce both consumption and start-up current, environmentally friendly air-conditioning and refrigeration systems, water-wise solutions and a green plant buffer between adjoining residents and the store. These green aspects go hand-in-hand with Nedbank's philosophy of ensuring a sustainable environment, a practice it is committed to.

"Although retail foot traffic has increased significantly over the past decade," says Chris Nezar, marketing director for Makro SA, "Makro is still very much a stockist for commercial and reseller customers, including spaza shop owners, corporates, small businesses, convenience stores and even franchisees of other retail chains.

The layout of Makro Cape Gate also makes it easier for the larger commercial customer to shop as it has  a dedicated check out area completely separate from the retail side, metal cages to hold stock for them overnight if necessary and a wide overhanging roof to make collection even easier, especially when it rains."

"This partnership underscores Nedbank Corporate Property Finance's commitment to the industry as it invests in platforms aimed to uplift and empower stakeholders," says Thomas. "Eris is a well-respected property development and services group which provides a range of commercial property skills in the South African and sub-Saharan African markets. The company currently has R5.2 billion in developments under construction which includes offices, retail and specialist developments."

Nedbank owns 100% of the remainder of the site on which Makro Cape Gate is built, which totals four hectares in extent.

Read more on:

Cape Town Property Market  |  Commercial Property Finance  |  Nedbank CIB Property Finance  |  Eris Property Group  |  Makro Stores  |  Massmart