In January, Wafi City will start work on the Dh74 million phase one of a major five-year development and expansion plan, senior shopping mall executives said yesterday. Wafi City, comprising Wafi Mall, Pyramids and Planet Hollywood, will create an additional 80,000 square feet linking the mall with Pyramids, General Manager Mike Davidson said.

Davidson expected the construction of the first phase to be completed by next June so that the 50 to 60 new shops can be handed over to retailers in August. "One of the first we have secured is the premier caterer of Lebanon, Goodies, which has committed to a 7,000-square-foot restaurant. We are now in negotiations with other retailers," he added.

"With the existing mall fully let and additional enquiries from retailers totalling 100,000 square feet combined with our own market research, there is an obvious need to increase retail space in Wafi City."

The phase one expansion was designed by Arif Bin Toak and construction will be handled by Khansaheb.

Abdullah Ibrahim bin Hussain, assistant general manager of MKM Commercial Services Co, owners of Wafi City, estimated work on phase two at $200 million. The design has been finalised, but market studies are continuing.

Phase two will include a new residence which is expected to be double the size of the current one with 140 apartments.

Wafi City is planning a hotel in phase three, but cost and design will be determined after market studies are complete, Hussain said. He did not expect the hotel to be constructed for five years. Davidson said, "It is actually a long-term plan."

On competition from malls, Davidson said: "The idea is all about retailers rather than the number of shopping malls. I think there is room for a number of malls offering different facilities." Hussain said: "Survival is for those offering the best services."

Davidson said there is a misconception that Wafi City is expensive for customers and stressed that it includes top-end brands and stores for all categories of buyers. "Today's young buyers of reasonably priced products are tomorrow's buyers of high-end brands," he added.