Arcades has been pursuing the development of a further hotel offering at Arcades Shopping Centre. This 4-star boutique hotel will be adjacent to the current Protea Hotel at the Arcades Shopping Centre. The financial structure of this hotel will be very similar to that of the current Protea Hotel, whereby Protea develop the hotel at their own cost, but all retail income derived from the ground floor of the property will accrue to Arcades.
The total GLA of the retail portion of this property is expected to be 640m2 and the target tenants will be similar to that of Arcades Shopping Centre. Whilst these tenants have not yet been secured, the Board is confident that this area will be fully occupied on completion as there is significant demand for retail space in this area. The average rental for the retail is expected to be US$20 per m2.