MBOMBELA – Old Mutual Property takes the concerns recently raised about Riverside Mall very seriously.

Lowvelder reported last week that shops in the mall were closing their doors due to financial pressure.
Mediterranean, Primi Piatti, Galaxy and The Market have all ceased operating due to high rent and decreased revenue.

Huge money woes for mall tenants

Body Shop is only closed for renovations, and will reopen soon. The Vape Lounge, which is situated at the back of The Market, will also remain open.

Old Mutual Property also pointed out that Galaxy stores had closed nationwide.
Members of the community have since raised more concerns. Petrus and Jeanet Swanepoel said they simply cannot afford the goods in more than 80 per cent of the retailers.

“We used to purchase monthly groceries, but after three consecutive poor service experiences we buy elsewhere.

“Some restaurants have poor service – waiters are just waiting for a tip. We requested tomato sauce for the table… did not arrive, requested again, did not arrive.

“In most cases the tenants are to blame. I have ordered pants at a clothing store, two weeks’ delivery, they will call me. After two weeks, no delivery… went to the shop… not arrived. The actual item is in Tzaneen, four weeks later, nothing.”

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Carla Viljoen said maintenance at the mall was exceptionally poor. “Most of their revolving entrance doors are always out of order, making it nearly impossible for a mom with a pram or a trolley to enter.”

“I think that the head offices of (the larger, corporate) shops pay less attention to the lower performing outlets, mainly because a shop with a better cash flow has a better chance of growth,” offered Darren Rix.
“Although once again I do not back this kind of service at all, I do think that there is a larger picture involved than just comparing it to ‘Riverside Mall’. It’s not the mall’s fault the head offices don’t look after their branches, but the lack of cash flow in the mall.

“I think the ‘stubbornness’ with regard to rent prices is not at all linked to the management of Riverside, but rather to the fact that it is owned by a money-hungry financial institution. Out of experience I can say that the management staff working at Riverside are exceptional at their jobs and have sometimes mourned with exiting tenants. But the negotiations of rent and leases merely pass through them to Old Mutual, who have the final say.
“My happiest childhood to teenage moments were spent at Riverside. The memories will last forever. It’s very sad to see the slow deterioration in what Riverside used to be.”

Peter Levett, managing director of Old Mutual Property, said as both the owner of, and investor in, Riverside Mall, they are very proud of this business centre which is celebrating its 20th anniversary this month.

“We can assure you that we take the concerns raised seriously, as we consider all our tenants and shoppers as valuable business partners of ours. As such, and we have an open-door policy to discuss and address matters, thereby helping our tenants to sustain their operations into the future.

“Specifically, we understand the frustration and inconvenience caused at intermittent periods when some of the mall’s revolving doors or escalators were experiencing technical issues, and we remain committed to repairing or replacing these speedily to ensure a pleasant shopping experience for everyone.

“Despite the current tough economic climate, the majority of our tenants are performing well and the Riverside Mall’s current tenant retention rate is 95 per cent. This includes some tenants who have been with us since the mall opened its doors in 1998. To curb tenants’ costs, and as part of our responsibility to the environment, Old Mutual continues to invest in green building initiatives. For example, during last year we installed rainwater harvesting tanks to cater for our gardening and sanitary needs, and earlier this year we invested in a solar roof panel to drive down electricity costs,” he said.

“Old Mutual Property remains a long-term investor in Mbombela. We will continue to invest, grow, and develop Riverside Mall for the benefit of our valued customers and tenants,” Levett said.

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