ACSA to tender Johannesburg bulk duty-free facility

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South African airport authority ACSA confirmed it will issue a tender next month for a one or two-phase development of a bulk duty-free trading facility in the Johannesburg airport perimeter, first announced in Duty-Free News International last month. The authority said it will be seeking business partners under two options specified in the tender document. ACSA has already conducted a research study carried out by local consultancy Market Decisions into regional "cash-and-carry" trade in the Johannesburg area and other major cities. This intra-African travel-retail trade is estimated to be worth $1.3bn per year and growing rapidly.

ACSA group executive-commercial, Rory Mackey, told TRW: "We are aware this is a unique concept, and not quite the same as the facility opened in Dubai several years ago. For this reason we have two methods for partnering.The first is a 12-month lease for a single operator trading from an existing warehouse. The second involves the full-scale development of a purpose-built, multi-tenanted, modular warehouse facility with new landside connections and Customs facilities."

The second hard launch option will involve a nine-month development period for a facility upwards of 10,000sq m (107,600sq ft) with a 5-year lease. ACSA said it is hoping for the involvement of its existing retail partners, the Big Five Duty Free consortium as well as other South African-based trading companies or cash-and-carry operators.

Mackey confirmed: "Operators can commit to one or both options. We would be most excited if it is the latter option. We are seeking a balanced mix of tenants but as a landlord we are unable to do substantial development without leases in place.

"Our research shows this bulk business for duty-free as well as less sophisticated, less high-tech appliances and non electrical goods is already substantial in Johannesburg and has evolved over time."

• Click here to read more information on the ACSA report "Understanding the Sub-Saharan Market and its Impact on South Africa"