1. Feasibility Study Clayville Retail Development September 2006

2. Objective Copyright 2006: Fernridge Consulting (Pty) Ltd “To determine the feasibility of the proposed retail development on Erf 1616, Clayville Extension 22, Tembisa”.

3. Area Overview Copyright 2006: Fernridge Consulting (Pty) Ltd

4. Land Use Map Source: 2001 Land use The Clayville site is located on the northern fringe of the Tembisa residential areas. The site is next to the prominent Olifantsfontein Rd. (R562). This road is one of the major link roads between Midrand and Tembisa. To Tshwane To Midrand To Boksburg Site

5. The Site Copyright 2006: Fernridge Consulting (Pty) Ltd

6. Source: 2002 Aerial Photography & 2006 Fieldwork The Site Copyright 2006: Fernridge Consulting (Pty) Ltd Site Taxi Rank Proposed Freeway Site Olifantsfontein Rd. Proposed Freeway The site is located along the current Olifantsfontein Rd. The new proposed road south of the site will be a freeway with possible access to the centre. According to Infragen Traffic Engineers this freeway construction will only take place in the distant future. Access to the centre is still to be finalized. According to the site layout, provision will be made for only 15 taxis. The site is not entirely surrounded by residential areas, but well located to capture passing traffic and could be used as a drop - off and pick – up point for workers at the industrial area opposite the street. A prominent taxi rank servicing the catchment area will be of great advantage to the centre.

7. Site Evaluation Modeling The site rates as good, pending that a prominent taxi rank servicing the residents within the catchment area will be established at the site (for more than 15 taxis). The site’s location opposite the industrial area provides an opportunity to establish a substantial taxi rank at the site. Copyright 2006: Fernridge Consulting (Pty) Ltd

8. Retail Potential Estimate (RPE) Copyright 2006: Fernridge Consulting (Pty) Ltd

9. Retail Potential Estimate (RPE) 2006 Projected Data RPE Model The potential estimated size (m² GLA) for the proposed centre: 19,559 m² GLA Total expenditure per category by all the households in the catchment area The total GLA potential for the catchment area. The capture rate of the different categories within the catchment area. Copyright 2006: Fernridge Consulting (Pty) Ltd This model assumes that a substantial taxi rank servicing the catchment area will be established at the centre. Catchment Area

10. Summary Copyright 2006: Fernridge Consulting (Pty) Ltd

11. Site & Area Characteristics The site is located along Olifantsfontein Rd with good visibility, opposite the Clayville industrial area. Olifantsfontein Rd is well used by residents of the area and commuters working at the Clayville Industrial area. The proposed freeway south of the site is not likely to happen in the near future. Olifantsfontein Rd is however a prominent road linking Tembisa and the Clayville Industrial area with the rest of Midrand. The site is well located to capture transient traffic, pending convenient access is provided from Olifantsfontein Rd. The proposed taxi rank at the site will only provide stands for 15 taxis. The site is not located within an existing node, thus the development should create its own node. A prominent taxi rank catering for more than 15 taxis at the site will aid in the creation of a node, especially if it is used by the Clayville industrial area workers. Summary Copyright 2006: Fernridge Consulting (Pty) Ltd Catchment Retail Only two prominent retail nodes are present within the catchment area: Olifantsfontein Cash & Carry strip and Kopanong Centre. The Olifantsfontein Cash & Carry retail strip has a number of retailers agglomerated within three nodes / centres. One of the nodes has a small formal taxi rank. This retail strip service the surrounding workers from the industrial area and residents within the surrounds. The Kopanong Centre is centrally placed within the residential area, located along Riverside Rd. which is a main road through the residential area. The centre size is ± 3,000 m² with a Score, PEP Stores and Barnetts Furniture as national tenants. A small formal taxi rank is also present at the centre.

12. Summary Copyright 2006: Fernridge Consulting (Pty) Ltd Catchment Demographics The greater catchment area has an overwhelming black community with the biggest ratio of residents being between the ages of 20 and 34. The catchment demographics reflects a typical emerging market with a high presence of informal dwellings and to a lesser extend formal houses. The Clayville residential area north of the site is mainly a middle income, medium density residential area with some growth in the middle income class. This area’s market is expected to support the proposed centre due to a lack of a one – stop offer in the area and possible strong links with the Tembisa community. Residents of this area mainly rely on private transport. The residential areas south of the site are dominated by lower income, high density residential areas where residents are mainly reliant on public transport. The centre tenant mix should focus on catering for a middle to lower income market. Other retailers are mostly small Viva Supermarkets and independent traders scattered throughout the catchment area. The Tembisa retail offer are characterized by a number of retail centres, mostly central to the public transport nodes and independent retailers and hawkers scattered throughout the area. Tembisa Plaza is the most prominent retail centre among these with a total size of ± 16,900 m² GLA. Tembisa Plaza is located further south of the proposed site’s catchment area.

13. Summary Retail Potential Estimate (RPE) Considering the existing demographics and competitors there is scope for a Community Centre at the site with a total GLA of ± 20,000m². The estimated centre potential is achievable, pending a prominent formal taxi rank is established at the site servicing the residents of the catchment area. The site is not located within an existing node, thus the centre development should focus on establishing a prominent node to maximize market share and to achieve a 15% catchment rate within the catchment area. General Comments The cathcment area’s southern residential areas have no substantial retail centres such as the proposed development at the site. A one – stop Community Centre at the site will be the first of such centres for the area. However, the development should focus on establishing a prominent formal taxi rank at the site and create its own strong node, as the development might be at risk if a similar development takes place more south within the residential area of the catchment. Copyright 2006: Fernridge Consulting (Pty) Ltd

14. Suggested tenant mix ideas: Food Large national supermarket – main anchor ± 3,500m²GLA. Butchery, Liquor store. Hardware / DIY Spar Build It / Mica Service component including Banks / ATMs, Cell phones (MTN/ Vodacom), Cash Loans, Post Office, pension pay-out point if not allowed at the Post Office. Furniture Ellerines Town Talk OK Furniture etc. Specialty stores – MultiServ, pharmacy, salon, optometrist, cosmetics, etc. Restaurants & Take Aways (Wine & Dine) KFC / Chicken Licken, Wimpy, Steers, Pie City, Independent restaurant & take aways. CFTA (Clothing, Footwear, Textiles and Accessories) Some national brand clothing stores, but with a small format. Jet PEP Exact Suggested Tenant Mix : Tenant Mix In our opinion the Community Centre should have a strong national food anchor. The centre should have a one-stop offer. Copyright 2006: Fernridge Consulting (Pty) Ltd The centre should also make provision for independent traders in the area to move their businesses to the centre. However, the national retailers should make out the larger area of the centre.

15. or Sybrand Strauss Director Tel:011 712 1720 Fax:011 339 1833 Cell:082 330 5168 e-mail:sss@fernridge.ucs.co.za Andre Annandale Business Analyst Tel:011 712 1714 Fax:011 339 1833 Cell:082 776 6353 e-mail:ana@fernridge.ucs.co.za Copyright 2006: Fernridge Consulting (Pty) Ltd