Landlords meet with Davenport trustees

AN article in Berea Mail last week on the move to convert a commercial floor at Davenport Square Shopping Centre into residential units was the catalyst for a meeting on Monday between a representative of SA Retail, the landlord at Davenport Square, and a group of concerned trustees.

Rhys Reed from SA Retail said he felt the trustees' concerns addressed in the article were premature as the company was still in the beginning stages of planning and would still need to assess whether the construction of residential apartments on the first floor of the centre was feasible.

He explained to the trustees that the company had been looking at its entire portfolio to assess which buildings were performing well and which were under-performing. He said as Davenport Square had 20 per cent vacancy, the company was looking at the more viable option of property rental, to grow its residential portfolio.

“We have done this in Johannesburg and it has been hugely successful. We have sold property in School Road in Pinetown and are planning building residential space at Musgrave Centre. We do not invest in student accommodation and only build top quality apartments which we feel will uplift the centre,” he said, to allay the fears of the trustees.

He said they would start the process early in the new year and look at what could be done at the centre.

“We're nowhere near the stage to develop. There are no plans but by the end of January we will be in a better position to know what we are going to do. We are not a fly by night company, and if this goes ahead we will make sure we get the right tenants for the beautiful apartments,” he said.

Reed said the company would look at the demographics to suit the area, and would charge approximately R3500 to R5000 rental.

“We will do our homework before we pull the trigger. This will add value to the retail part of the centre and we will do what's within our rights and not contravene any by-laws,” he said.

Trustee, Wendy Knowler, addressed the issue of parking space for the additional units, which she felt was the biggest challenge. Rhys said the company would look at this as they hadn't yet applied their minds to that aspect.

“It is a bit premature now, but it will be done properly,” he said.

When questioned why the tenants only found out last month that there was something afoot, Marion Plint from Broll said they had been given ample time (six months) to relocate. Rhys said if tenants weren't able to be out within this six months, they would be given a few months' grace.

Regarding the issue of unruly tenants disturbing the peace for the other 150 residents in the building, Reed assured the trustees that there would be a stringent vetting process, and there would be a full-time property manager to keep control.

“This will be run like a proper business. We are a listed property investor, we can't act recklessly. We wouldn't do anything if we didn't feel it would uplift the building. We will still conform to the body corporate rules and won't do anything without their consent.

Knowler said she felt it was important that there was full communication and transparency going forward, which Reed agreed to.

Building supervisor, Angela Leemans, said she was still opposed to the plans and told Reed that a lot of flat owners weren't happy.

“This is going to disrupt 101 businesses, 150 flats and the community, all to build 61 flats!” she said.

Reed said he would meet with the trustees at the end of January with a definite plan of what the company was considering.