Tamdeen on track with leasing plan
Al Kout development is scheduled for an October 2017 opening
Atough retail environment clearly isn’t hurting mall developers’ prospects — Kuwait’s Tamdeen confirmed it is at the 70 per cent mark on the leasing programme for the massive Al Kout Mall development. This assumes significance given that the new extension is still a good 12 months from opening and at 750,000 square feet will be the largest retail stock entering the Kuwaiti market in 2017.
“The situation everywhere is tough, but in comparison, Kuwait’s prospects seem that much better,” said Shavak Srivastava, member of the board of directors at Tamdeen Shopping Centres. “What we wanted from the outset was a large number of brands as opposed to a few large tenants. It’s a strategy that worked well with the Al Kout leasing.”
Retail mix
The retail mix meant a larger store would only be just over 30,000 square feet, while the average would be in the range of 15,000 square feet. “Even with the brands, there is much more emphasis on getting in mid to upper-mid range labels than the high-end ones,” said Srivastava.
Once the new areas open for business in October 2017, the developer will close off the original mall for a complete refurbishment, which will then take about 12 months to complete. That would add up to 1.2 million square feet of retail area. The Al Kout destination will also include a “souq” element, which will be housed by names slightly more high-end as well as bridge brands. The overall cost associated with the Al Kout project is $230 million (Dh845 million).
Whether in Dubai or elsewhere in the Gulf, mall owners confirm there is no let-up in the level of retailer interest for any new space coming into the market ... and at lease rates that are little changed from the levels recorded before the downturn set in. Saudi Arabia’s Arabian Centres — the kingdom’s biggest operator — recently confirmed high levels of interest for all of its new builds, while in Dubai there is only limited free space available at the ongoing expansions within the top destinations.
“As for Kuwait, it’s been a huge boost that all of the government led investments are carrying on, even in the current economic climate,” said Srivastava. “That’s spurred a lot of growth and reflected in the numbers we have had at our flagship mall — the 360.”
The 360 mall is inching closer to full occupancy.