Botswana’s second largest mall by size, Airport Junction is undergoing a P65 million expansion, something which its developers, Khumo Property Asset Management, hope will give it an edge in the country’s increasingly competitive commercial property market. Khumo Properties Chief Executive Officer (CEO), Outule Bale revealed that the mall’s new wing will be completed in December this year and will host health club Virgin Active as well as sports retailer, Mr. Price Sports.
This expansion is part of a larger strategy to compete in Botswana’s commercial property market, largely concentrated in Gaborone, where there has been a proliferation of shopping malls in the past decade. When the first parts of Airport Junction opened in 2010 there were no large retail centres in the immediate area but now there are three. Airport Junction, Sebele Centre and Northgate Mall have all been established within walking distance of each other.
The growth of the surrounding neighbourhoods such as Block 10 and Block 8 have certainly had a strong influence but this trend is notable in other parts of Gaborone as well, such as with another Khumo retail development, Rail Park Mall, which opened in 2012. “Malls are fighting for people to spend more time on their premises and that’s exactly what we’re doing,” Bale admitted during the briefing. Expansion has become the weapon of choice in the Capital City’s commercial property wars.
Airport Junction’s biggest rival lies on the other end of town in Kgale View; Game City.
Further down the A1 road, Mowana Park in Phakalane is currently undergoing an expansion which will include a 3,200sqm Choppies Hyper and an 800sqm Woolworths Foods, reputed to be the biggest in the country. Opened in 2005, Mowana Park has occupied a comfortable position as Phakalane’s only significant retail centre but even this mall’s owners have recognised the need to improve its offering to keep attracting customers.
However, Airport Junction’s biggest rival lies on the other end of town in Kgale View; Game City. Despite already being the largest shopping centre in Botswana at an impressive 51,000sqm, Game City is undergoing an expansion to add retail space including a fashion avenue, a food court, as well as an entertainment area and a parkade. This is the mall’s fourth expansion since it first opened its doors in 2003 and the current expansion is being done at a cost of P250 million.
Not to be outdone, Bale said that this is only the first of a series of expansions Khumo intends to undertake on Airport Junction in the near future. Though unwilling to reveal details at this stage, Bale mentioned that his team intends to break ground on a second expansion during the first quarter of 2016 which will focus on improving the lifestyle offering of the retail centre. He added that Airport Junction will be 45,200sqm in size once the current expansion is complete and will grow to approximately 60,000sqm during the second expansion. Meanwhile, Virgin Active management have already begun selling gym memberships in anticipation of the health club’s opening.