The Abu Dhabi suburbs of Al Bahya, Al Rahba and Shahama have remained underserviced in terms of supermarkets and department stores. Residents don't have a great deal of choice but to shop at small corner convenience stores, forcing them to make a lengthy commute to buy their monthly groceries.
But come October 2012, the situation could change with the opening of Deerfield's Town Square, a community mall that will offer 80,000 square metres of gross leasable area. The centre will include anchor tenants such as Carrefour, Red Tag, the Landmark Group, a family entertainment centre and a multiplex.
An Al Bahya resident, who did not wish to be named, says, "We need real retail. Currently, we have to drive to either Al Raha Mall in Abu Dhabi or Ibn Battuta Mall in Dubai for shopping. The small corner convenience stores do not cater to the requirements of the large families residing here."
Resident's grouse
While most families choose to go shopping at the Abela supermarket in Etihad Plaza, Khalifa City A, this can be inconvenient for residents who do not have access to a car.
The resident added, "Al Bahya sorely lacks a community centre. Even the tenant mix in neighbouring malls does not appeal to us."
Discerning the needs of the residents in the catchment area of Deerfield's, the mall promoters value-engineered the scale of the project — making it a community centre with mid-tier retail brands rather than a super regional mall.
Deerfield's general manager, Banu Tas, says, "It is not unusual for a resident in this neighbourhood to travel up to Dubai or mainland Abu Dhabi to shop for essentials almost twice a week. We rationalised the mall design, and the new tenancy mix suits the needs of our catchment area.
"We will also have banks, clinics, government services, spas and fitness centres in order to serve the community's needs."
Jones Lang LaSalle (JLL), the project's leasing and retail consultant, says residents have also requested a special needs clinic in the community centre.
Creating loyalty
Apart from the primary catchment areas, the promoters of Deerfield's Town Square are also hoping to attract repeat visits from residents in secondary catchment areas such as Khalifa cities A and B and Al Reef.
The leasing consultants are quick to dismiss fears of invading the catchment space of the upcoming Yas Mall.
David Macadam, head of retail, JLL, says, "Going for convenience shopping to the large-scale Yas Mall wouldn't be too ideal, and that's where a community mall fills the gap. There is a strong ability to generate loyalty. If you have the right shopping mall with good access and appropriate retailers, you can create loyalty."
Leisure offerings
The leisure attractions at Deerfield's Town Square will include a multiplex with nine screens, a bowling alley, food court, gaming zone, racing zone, sports zone, a climbing wall and skatepark.
In addition to Emirati and expatriate families, the mall's promoters are hoping to take advantage of the mall's strategic position and visibility on the Dubai-Abu Dhabi highway to convert highway traffic into customer footfall.
"Originally, the brands proposed in the super regional mall were a little too high-end. Now, we have value-oriented brands instead," says David.
"The families in our catchment all earn good incomes, but the average family size is eight."
Mall rentals
As for store rents at Deerfield's Town Square the leasing consultant will only reveal that they will be 20 to 30 per cent lower than those in Marina Mall and Abu Dhabi Mall.
JLL's David says, "The leasing rates depend on the retailer. The coffee shops command the highest rates. For the anchors, the rents are cheaper as they offer value-priced retail and occupy more space. Going forward, however, rents will be a function of the sales achieved by the retailers."
David added that more than 34 per cent of the mall had already been leased to tenants. The increasing retail supply in the capital has meant retailers have been able to improve their negotiating position. Lease incentives such as rent-free periods and rent holidays are now commonplace.
David adds, "Since we have redesigned the mall and re-established where we're headed, the retailers are happy since it offers a new story. Today, retailers have to believe in the vision of a mall, its tenant mix, access, parking, fit-outs, etc before signing an agreement. They are more careful about where they make their commitments."
Construction progress
More than 20 per cent of construction work has been achieved to date at Deerfield's Town Square.
According to the main contractor, the Fibrex Construction Group (a minority shareholder in the mall), the retail units will be handed over to anchor tenants for fit-outs in April next year while the official opening of the shopping centre has been slated for October 2012.
Developed by MBI (Mubarak and Brothers Property and Financial Investments), the Dh700 million mall will accommodate approximately 200 retailers.
Banu adds, "Financing any real estate project is not easy nowadays. However, we were lucky to source our finance from the National Bank of Abu Dhabi and Emirates NBD. It's a club deal. We structured our construction finance through them."
Reversal of exodus
With Paragon Mall on Reem Island, Mushrif Mall on Old Airport Road and Bawabat Al Sharq in Baniyas all due for completion this year, there could, finally, be a reversal in the exodus of Abu Dhabi shoppers driving to Dubai.
The last major retail centre to be completed was Delma Mall in Mussaffah in October 2010. Other major additions to mall retail supply in the medium-term include Yas Mall, Arzanah Mall and Reem Mall.
Homeowner view
- Deerfield's Town Square will open its doors in October 2012
- Tenants include Carrefour, the Landmark Group, Red Tag and a multiplex
