ALTX-listed Quantum Property Group (QPG) plans to invest R75m in Sandton Eye, the R1,4bn new mixed use development at the epicentre of the Sandton business hub.

QPG will acquire a 25% stake in the project.

The group will also be appointed development manager responsible for construction, leveraging its directors’ development experience with more than R4bn of landmark projects under their belt.

QPG chairman Chaim Cohen says the Sandton Eye was a logical progression in the QPG portfolio.

“Sandton Eye is of the same exclusive genre and quality standard as the group’s first project — 15 on Orange in Cape Town,” Cohen says.

The Sandton development includes 5000m² of prime boutique retail, 20000m² of offices, a 200 roomed five-star Radisson Blu hotel and 12 luxury penthouse suites.

“Sandton represents one of the highest socioeconomic profiles in the country with mainly LSM 10+ residents, and is the second-largest office node in SA,” Cohen said.

He said for some time the area had been growing at roughly 4% annually, while office space had increased about 6% a year since 1993.

“The Sandton Eye is therefore ideally positioned to capitalise on affluent local residents and businesspeople, Gautrain and bus commuters and tourists.”

The development was strategically positioned opposite the Gautrain Station, which was expected to see about 12000 commuters an hour.

“Our patronage will be further boosted by the rapid bus transit system — BRT — the main station being situated at the entrance to Sandton Eye,” he says.

The Sandton Eye deal remains subject to a number of conditions.

The group was also pursuing further expansion both locally and abroad. Grindrod Bank has recently been appointed as corporate advisors in respect of capital raising to fund acquisitions.

CEO Gary Itzikowitz said QPG was optimistic about raising the targeted capital.

QPG is set to derive ongoing income from the leasing and operation of the 15 on Orange Hotel, together with African Pride (the premier 5-star brand in the Protea Hotel Group’s stable), and from the parking bays and retail tenant rentals.

“We have a three-pronged strategy encompassing property developments but extending also to investments and trading. This will build a quality, sustainable portfolio with diversified revenue streams.”

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Source: Business Day