Feasibility Study Demographics Retail Potential Bartlett Site Ekurhuleni

Feasibility Study: Demographics & Retail Potential Bartlett Site: Ekurhuleni January 2007 Note: This project should be regarded as confidential as it contains Data, Information and Intellectual Property of Fernridge Consulting and Retail Network services - Copyright (Limited Distribution) Copyright 2007: Fernridge Consulting.

Introduction This report aims at assessing the feasibility of a proposed site for a new Convenience centre located within the Bartlett, Ekurhuleni area. The proposed site is situated on the corner of Ridge & Elizabeth Roads. A demarcated catchment area was digitized in order to extract the 2007 Fernridge Household counts and existing retailers. The site was assessed by physical inspection as well as aerial photography. By using the Census 2001 data we were able to initiate a demographic comparison between the proposed catchment area and the surrounding precinct. Future developments were also taken into consideration for future growth figures. The final points of the report focus on our retail potential model which has been followed by an executive summary. Copyright 2007: Fernridge Consulting Copyright 2006: Fernridge Consulting.

Overview/ Landuse DENEL Aviation To Kempton Park OR Tambo International Airport The Site To Johannesburg To Benoni East Rand Mall Copyright 2007: Fernridge Consulting Copyright 2006: Fernridge Consulting. Benoni Lake Golf Club

Catchment Area DENEL Aviation To Kempton Park OR Tambo International Airport The Site A primary catchment area was delineated in order to assess the demographic profile and potential in the immediate vicinity of the site. To Johannesburg To Benoni East Rand Mall Copyright 2007: Fernridge Consulting Copyright 2006: Fernridge Consulting. Benoni Lake Golf Club

Current Retail Potential Estimate (RPE) Expenditure Model Monthly Expenditure No of Households Anticipated trading density (Rand / m² / Year) Woolworths Food Potential: - @ benchmark R 60, 000/m² trading density - @ benchmark 15% market share - Monthly turnover of ± R 2. 6 m - Warranted floor space of 514 m² selling. Pick ‘n Pay Potential: - @ benchmark R 30, 000/m² trading density - @ low benchmark 25% market share - Monthly turnover of ± R 4. 3 m - Warranted floor space of 1712 m² selling. Copyright 2007: Fernridge Consulting Copyright 2006: Fernridge Consulting. Anticipated market share scenario’s

Executive Summary • The proposed site is very well situated in a somewhat confined area. Barriers like the Airport to the west and the N 12 highway to the south are enhancing the catchment to a captured market. • C/o Elizabeth Rd and Ridge Rd is very well located in the catchment. This is a relatively busy crossing. The quantity of the traffic will be moderate but it is expected that the quality of passing traffic will be high. Due to the neighborhood character of the proposed centre the latter might only be achieved if the convenience offer of the centre is emphasized strongly. • The proposed site will be a stand alone centre, thus synergy is limited, but on the other hand, direct competition is also minimized. • The value density modeling is an indication that the area is on par with the rest of the catchment in terms of the monthly food expenditure. • The catchment is characterized by a strong A – C income bracket. Rapid growth of residential units have occurred in the area, and is a positive for the proposed shopping centre development. • We believe that a Woolworths Food and a Pick ‘n Pay will complement each other in the centre. Taking in consideration that each one of these store’s benchmark trading densities (Woolworths: R 60, 000/m² and Pick ‘n Pay: R 30, 000/m²) with a expected 15% and 25% market share respectively, will warrant a 514 m² store (selling) for Woolworths and a 1712 m² store (selling) for Pick ‘n Pay. The expected monthly turnover of The Woolworths will be ± R 2, 6 m and for Pick ‘n Pay a ± R 4, 2 m monthly turnover. • A Convenience Centre of 10, 000 m² GLA can be justified in the next ± 2 years given the high growth in the area. Copyright 2007: Fernridge Consulting Copyright 2006: Fernridge Consulting.

Executive Summary Suggested Tenant Mix: In our opinion the centre should be created into a prominent and convenient node that will attract people from the surrounding neighborhoods. The tenant mix should be sufficient to attract the middle-to-upper income bracket. Recommended tenant mix according to the following guidelines (for the 10, 000 m² GLA Convenience centre): • Food • National supermarket – main anchor Pick ‘n Pay (± 2, 200 m² GLA) and Woolworths Food (± 700 m² GLA). • Specialty Stores • Secondary anchor – Clicks. • Line shops such as salon, DVD, music, pharmacy etc. • Service component including Bank / ATMs and Post Office. • Restaurants & Take Aways (Wine & Dine) • One or two well known Fast Foods like Wimpy, KFC and a Coffee Shop Copyright 2006: Fernridge Consulting

Contact Details Sybrand Strauss (Director) Fernridge Consulting PTY LTD South Africa Tel: Fax: Cell: e-mail: 011 712 1720 011 339 1833 082 330 5168 sss@fernridge. ucs. co. za Marinus van der Merwe (Business Analyst) Fernridge Consulting PTY LTD South Africa Tel: Fax: Cell: e-mail: Copyright 2007: Fernridge Consulting 011 712 1370 011 339 1833 084 240 1151 mvm@fernridge. ucs. co. za