Fairview rival nabs business from Tewani
Published:Wednesday | June 29, 2011 | 12:00 AM
Avia Collinder, Business Writer
Gordon Tewani has lost a few tenants to a competing commercial complex in Montego Bay owned by Mark Kerr-Jarrett, but the Kingston-based businessman says he expects to replace the migrant operations in no time.
Tewani acquired the teeming Fairview Shopping Centre two years ago, inheriting several popular businesses as tenants.
But some of the companies are now moving to the adjoining Fairview Towne Centre, which is owned and developed by Kerr-Jarrett, who is from Montego Bay, through his company Frontier Development Limited.
Kerr-Jarrett declined comment on the value of the investment, which is in its second phase.
Both properties are adjoining with no barrier between them, but the real estate company selling Towne Centre space says its advantage is not location, but price - a reading that Tewani dismisses.
Courts Jamaica, which relocated from Barnett Street to Fairview some five years ago, is moving again to leased premises at Towne Centre and would be spending J$35 million to shift a staff of 30 and stock next door, according to Dennis Harris, acting managing director of Unicomer Jamaica, the operating company for the furniture retail chain.
The relocation is set for September.
"Courts is a mass-market retailer and this will remain our target in the new store. However, the size of the store will allow for a greater range of products which we are not able to do in our current store. We will therefore be able to cover a wider demographic sphere," said Harris.
"Our current store in Bogue will be closed."
Fontana Pharmacy is also shifting shop.
An administrator at Fontana described the new location as "bigger and better surroundings".
Courts did not state its reason for moving.
Tewani insists it was not for better rental rates.
"Some of them have bought property. It is not that they are leaving my place to rent another."
Tewani also disclosed that "RBTT has also decided to close its branch."
Tewani acquired the 101,000-square foot Fairview complex from the Cable & Wireless Jamaica Pension Fund in 2009.
He says office space on the plaza which houses Maxie department Store, Bohios Fine Furnishings, Sinclair's Bargain Centre, Hi-Lo supermarket, Palace Cinema's Multiplex, Texaco service station, Rapid TrueValue, KFC and others, ranges from US$12.50 to US$14 per square foot in monthly rental.
Fairview Towne Centre prices range between US$10 and US$15 per square foot per annum, according to realtor Michelle Fitz-Henley.
That price has also brought new clients to the increasingly popular commercial zone, which borders Catherine Hall and Bogue, including Progressive Grocers, Café Blue, Tamarind Restaurant, Napoli's Ristorante and Pizzeria with Italian cuisine, Wright Style by Schatzie, and Lloyd's department store.
Progressive is said to be expanding to Towne Centre, joining big rivals Hi-Lo as well as MegaMart, which has its own complex at Catherine Hall.
A representative of Frontier Development, who did not wish to be named, said Towne Centre would comprise 20 units spread across four buildings.
One of the buildings will house Progressive.
Frontier Development will retain ownership of the 20 units.
"What we have is, with the rehabilitation of the road known as the Bogue Highway, it is now easier to travel from Westgate, Reading, Bogue and surrounding areas connecting via Alice Eldemire Drive without the need to travel into the downtown area to conduct business or for shopping where there is hardly any parking space available," said Fitz-Henley, realtor associate of La Maison Property Services Limited, which is responsible for listing the Towne Centre complex.
"Additionally, there is very little commercial space available downtown which satisfies the parking requirement by prospective buyers and renters."