South African property developer, Stanlib in partnership with Chestnut Uganda plan to construct a $50 million shopping mall in Kampala’s suburb, Makindye Municipality. The Arena Mall will be built on a five-acre piece of land, less than 2km from the capital’s central business district. Stanlib’s private equity Africa Direct Property Development Fund will provide $30 million with $20 million debt from Standard Bank South Africa. Standard Bank is Stanlib’s parent company.
The mall will occupy 14,000 square metres with two levels of shopping space, a rooftop cinema, restaurant and parking. Construction works are scheduled to begin in the first quarter this year with the mall expected to be open in 2018. According to real estate players, Makindye was the only municipality in Kampala that lacked a high-end shopping mall despite a presence of a middle-class with purchasing power. Among prominent organisations neighbouring the mall will be the American Embassy, Nsambya hospital and Kampala International University.
“The infrastructure development taking place near Makindye Municipality such as the Kampala-Entebbe Express Way that also bears the Munyonyo Spur and planned development of the Clock Tower flyover will drive future demand for retail space dedicated to low and middle-income consumers. “The Arena Mall will also fill a big shopping mall gap in this area and also tap into some neighbouring areas of Nakawa Municipality and Entebbe Road,” said Judy Rugasira Kyanda, Knight Frank Uganda’s managing director.
Knight Frank will be the letting agent of the upcoming mall. Seyani Brothers Uganda Limited is the main contractor for the project while Bowman Associates Architects and SASA Architects are architects.