New shopping mall expected to create over 1,000 jobs

By MACHARIA KAMAU

 A planned shopping mall along Thika Road is expected to create in excess of 1,000 jobs when it opens for business later next year.

The Garden City Shopping Mall, which is the first phase of the planned urban Development Garden City, is slated to start in the second quarter of the year and is set for completion towards end of 2014.

Tenants that will take up space at the mall upon completion are expected to offer 1,300 jobs to skilled and unskilled personnel.

In the construction phase expected to start in April, and go on until end of next year, the development will create 500 temporary jobs for casuals and professionals on the construction site.

Actis and Mentor Management East Africa will put the development whose subsequent phases will include residential houses and more commercial space. The entire project has been projected to cost Sh13 billion, and take about five years to complete.

“We estimate the number of full time equivalent jobs that will be created at the centre will be at a ratio of one job per square metre. This would lead to 1,300 full time jobs in phase one alone,” said James Hodell, Chief Executive, Mentor Management East Africa.

Among the anchor tenants for the shopping mall is local retail supermarket chain Nakumatt and South Africa firm Game Stores, also a retailer of general merchandise. Hodell said more tenants are being sought.

The firms that will operate at the mall will recruit on their own. Close to 200 outlets will be opened at the mall, which will be a mix of retailers of general merchandise, clothing, furniture and eateries.

“We have received signed letters of intent from over 50 tenants, from all sectors. We have a particular focus on catering, furniture, and fashion.”

The development is being financed by Actis while Mentor Management – in which Actis owns a controlling stake – will oversee the construction.

Leasing agent Knight Frank is working with top local and foreign brands to fill up the available stores. A statement by Actis this week said discussions are ongoing with a number of South African retail groups.

Construction is expected to begin in the second quarter of this year and to be completed in time for Christmas season of 2014.

A residential scheme, including 420 apartments and townhouses, will be developed following the launch of the retail centre. It will also have a four-acre central park.

Garden City will be built on a 32-acre piece of land in Ruaraka formerly owned by East African Breweries. It is about 400m off Thika Road.

 The land is mid-way between the CBD and the Northern/Eastern bypass – about ten minutes drive from the CBD and just four minutes drive from Muthaiga.

The mall is the second largest major investment to be announced after Thika superhighway.

Other investments expected along the superhighway are from PepsiCo which is establishing a Sh2.4 billion bottling plant, Supermarket chain store Uchumi, and European furniture chain IKEA.