Following the recent discovery of oil in Sekondi-Takoradi, a city located in the Western Region of Ghana, investment interest in this port city has grown significantly and attracted notable institutional investors.
A recent example is Takoradi Mall, a shopping centre development sponsored by RMB Westport and anchored by Shoprite . Phase 1 of the project delivered 11,000m² of retail space in 2018. The 2nd phase however, which was meant to take the centre to 20,000m² is currently on hold.
The mall is located on Heritage/Cape Coast Sekondi Road, opposite the Takoradi Airport, and close to prime neighbourhoods such as Beach Road and Chapel Hill. It was designed by MDS Architects, the South African firm who also designed the Junction Mall. According to MDS, the design of the centre is contemporary but also incorporates the flavours and vibrant colours of the local Takoradi and Ghanaian vernacular. The building’s internal common areas have high double volume walkways with industrial fans, in lieu of the typical HVACs (Heating, Cooling & Ventilation) systems. A good cost savings tactic, as HVAC systems are significant element of construction cost. According to IFC Edge, the African Green Building Certification body, the green features of the mall cost less than 1% of the total cost and will generate savings of 25% in utility costs.
Though the centre opened in December 2018, during our visit in last month, the mall appeared as though it had just opened a few weeks ago. It is hard to determine whether this is a result of good facility management by the Broll team or a result of little interaction or usage from the local community. Occupancy levels are said to be approximately 50% with line shop tenants like Stanbic IBTC, Essenza and more.
In contrast, the Market Square, one of Takoradi’s tourist attractions shown below, is a hotbed for less formal retail activity; the way Africans still seemingly prefer to shop. Though the quality of stock in the area is poor, the central location of the Market Square means there is consistent foot-traffic. It has also led retailers such as Woodin, Tecno, PZ, all the banks and many more to convert old residential properties to stay as close to this action as possible.
With that being said, it is clear that Takoradi is still in need of more formal retail, especially because of the way the city demographic is poised to grow with the recent discovery of oil. What is more difficult to estimate however, is the amount of time it will take for this type of formal retail to become the standard, and not the exception in a small 2nd tier city like Takoradi.
Other institutional investors in the area include African Capital Alliance, who were involved in a 132-key Protea Hotel Takoradi Select and Westpark who are sponsoring a 405-acre industrial and business park along the Cape Coast – Takoradi Road.
Source: estateintel
