Lee Issa no longer selling Tropical Plaza, diversifies instead
Published:Sunday | March 6, 2011 | 12:00 AM
Avia Collinder, Business Writer
A corner block of shop space at Tropical Plaza in Kingston has tested a number of businesses that need expansive operating space. The last three of these were supermarkets and a furniture store.
But when the last of them, Khemlani Mart, shuttered in 2009 after a relatively short period of operation in the life cycle of a business, the owners of the shopping complex opted to try something new.
The move comes with owner Lee Issa's decision to kill the idea of selling his holdings in the shopping complex, opting instead to diversify the shop offerings.
Now, the 15,000 square feet of space that housed Khemlani Mart, a furniture business run by Steve Khemlani, is being divvied up to make way for eight stores for let to restaurateurs and other fast-paced businesses capable of pulling traffic into the shopping centre.
Norris Clarke, the manager of Tropical Plaza and managing director of Lee's Fifth Avenue, says J$65 million has been budgeted for the remodelling project. The new stores will range from 1,000 to 2,200 square feet and because of their smaller sizes, will rent for between US$20 and US$25 per square foot, he said.
The other shops pay rental at a comparable rate, said Clarke.
Issa owns 16 of the 24 shops at Tropical Plaza - including his own proprietary store, Lee's Fifth Avenue - as well as the car park, which has a separate title, the manager said.
The project, slated to be wrapped up in the next four months, is 10 per cent complete, with steps, staircases, and ramps to be put in next.
Clarke said the management of the plaza was looking for enterprises which would act as magnets to other shoppers in new market segments.
"We will be avoiding jewellery stores, clothing, and pharmacies, which we already have here. There is no sense in bringing in more competition. We are trying to create a better shopping experience," he told Sunday Business.
Looking to diversify
Tropical Plaza is looking to diversify and would be interested in attracting "one of the more popular food establishments," said Clarke.
He said that already, there was "quite a bit of interest" in the shops, but that only the right kind of businesses would be considered.
Two investors, including a restaurant operator, have already, signed up, he said.
Clarke also disclosed that while Issa had contemplated selling the plaza and had received expressions of interest, there had been no further consideration to disposing of it.
Asked if negotiations were still ongoing between American Jewellers store owner Indru Khemlani and Issa, the manager maintained that "as far as I know, the plaza is not for sale".
Khemlani indicated last week that he was still interested in acquiring the plaza and was open to considering a reasonable price for the asset.