The property deal, which is linked to the purchase of eight buildings in the city for about R50m from Nedcor, was won on Friday by the consortium, led by property group Howard Holdings, as an Irish trade delegation headed by trade minister Michael Ahern visited the city.

It will be the biggest private sector inner-city renewal project to be undertaken in SA in the past few years. The fact that the project has attracted foreign interest and is in such close proximity to both national and provincial parliaments, has been described as "stunning".

It involves buildings on Adderley and Wale streets, and along St George's Mall, including the famous "Lady of Wale Street" which housed the BoE headquarters, the Cape of Good Hope Bank building and the Old Reserve Bank building.

The development will include a premier international brand six star hotel, residential apartments, top class international retail and some premium commercial space.

"Manuel's tax breaks for the refurbishment of buildings clinched the deal," said Michael Farr, CEO of the Cape Town Partnership, who has spent nearly a year facilitating the Irish investment.

In terms of the tax breaks, the investors will get a 20% straight line depreciation over a five-year period on their investment.

Nedcor and Howard Holdings have already started a three-month due diligence process. Property experts estimate the purchase price for the eight buildings, which are situated on seven properties, is "between R40m and R50m".

Frank Gormley, chairman of Howard Holdings, said such was his confidence that a new company, Eurocape Investments, had been established to focus particularly on investment and development opportunities in Cape Town. Eurocape had plans to build a substantial portfolio in the Cape Town region and Derek van den Bergh, Nedcor's GM of property services, said there was already a deal in the pipeline.