Tongaat Mall to be rebuilt

Currently an eye-sore in the centre of the town, the shell of the Tongaat Mall is set to be rebuilt and fully furnished with retail stores, banks and food outlets as soon as approval for the sale is finalised by the labour department.

The mall, which partially collapsed in November 2013, tragically killing two people and injuring a further 29, has been left derelict since the incident.

An inquiry launched by the labour department into the collapse, which recently came to a close, found that a number of building regulations had been breached during the mall’s original construction. This prompted the commission of inquiry to forward the case to the National Prosecuting Authority, who is still deciding whether anyone is liable for the accident.

North Coast investors, Keystone Investments and Richter van Niekerk Properties (RVN) are now in the process of buying the site from its original developers, Rectangle Properties with the plan of building Tongaat’s first multi-purpose shopping mall.

While no funds have yet been transferred, a sale agreement has been drafted and signed by both parties. According to owner of Keystone, Holger Peens, he and his partner are awaiting final approval from the labour department before the land is transferred to them and construction can begin.

Included in the blueprints are plans to open retail stores such as Jet, Edgars and Ackermans, branches of all major banks as well as a selection of fast food outlets.

“The mall itself will be anchored by Spar and Woolworths, and Nandos have also shown a great deal of interest,” said Peens, who is looking forward to seeing the shopping centre’s doors open.

Keystone, who is the principal investor in the deal, together with fellow investor RVN Properties, are sure to face the heat of the public spotlight as the mall’s initial collapse captured international attention.

“Obviously, the circumstances surrounding the site are very unfortunate, with the tragic deaths of two people when the original structure collapsed, and this has definitely given us a lot of added scrutiny both as investors and developers,” said Peens.

He added that all necessary measures have been put in place to ensure the same mistakes are not repeated.

This includes hiring externally contracted design engineer Rob Young from Durban-based engineering firm, Jan & Satharia to conduct a critical assessment of the current site and the pitfalls of its original design.

This was done in order to both strengthen the structure and greater utilise the space around it once complete. Young was appointed by Gralio Precast (Pty) Ltd to investigate the collapse of the Tongaat Mall during the commission of inquiry.

The cost of the rebuild is estimated at a hefty R250m, with a healthy 9% return of investment predicted. Peens said that this, together with Tongaat’s close proximity to the tourism and investment hubs of King Shaka International Airport and Dube Tradeport, makes the project a “no-brainer”.

With its population of over 42 500 residents, Tongaat is home to a high volume of potential consumers in need of more retail and banking facilities, which many are forced to travel long distances to access.

“Tongaat is the heartbeat of the North Coast, as many people working in towns like Ballito and Umhlanga live there, so it forms an important part of our community,” said Peens.

Another massive benefit to the town is the promise of job creation, as unemployment is a major problem both in Tongaat and its surrounding settlements such as Hambanathi and Rajkumars. According to Peens, more than 1 000 temporary jobs will be created during the mall’s construction and 300 to 500 permanent jobs in retail, cleaning, maintenance, security and catering.

Project completion is forecast for between September and October next year, providing the final approval from the labour department arrives in the next few months.

“We are keen to get out and get going,” said Peens.