Cape Town CBD development on a roll GRAHAM NORRIS Property Editor THE R400 million redevelopment announced earlier this week of two city blocks in the historic Wale Street precinct by Irish company Howard Holdings is by no means the only new project in central Cape Town - in fact investment in the CBD this year is set to exceed last year's figure by 50%. Describing the growing investment as the "economic result of the urban renewal programme", chairman of the Cape Town Partnership Michael Farr confidently predicted that up to R1.6 billion would flow into the CBD this year, following the 2002 figure of R1.1bn. In one of the new projects, work has begun on the first phase of a R60m parking garage development in lower Bree Street, in an area of the CBD now being dubbed the financial district. The investment syndicate that is undertaking the 700-bay parking garage development, to be called 33 on Bree, has also bought the adjacent A-grade office building, The Terraces, for R44.5m from the Motor Industries Pension Fund. Mike Raggett, one of the partners in the syndicate, said the positive market response to 33 on Bree and the general improvement of the city centre had prompted the additional investment in the immediate vicinity. He said the parking garage would add great value to The Terraces by allowing tenants to increase their parking ratio to four bays per 100m2 of office space, "in an area which is historically under-provided in this important facility". "When the parking comes on stream in October it will make a big difference to the tenants of this building and others nearby. We have been inundated with inquiries from the owners of nearby buildings wanting to take up banks of parking bays to make up for their shortage," Raggett said. The 33 on Bree project will comprise 3 000m2 of retail space at ground floor level. Some 2 500m2 of new offices will complement the parking garage with availability of utilised bulk allowing for a further office component to be built above the complex, comprising an additional 3 000m2. Tyger Wheel and Tyre, currently in the block fronting on to Riebeeck Street, will be moved to the corner of Bree and Waterkant streets. The historic building known as Ozalid House on the corner of Riebeeck and Loop streets has been on-sold to a company in the tourism industry and will be turned into a boutique hotel. "Negotiations are being held with a number of retailers looking to establish themselves in this rapidly improving zone of the city," Raggett said. Meanwhile, in the eastern side of the CBD, a new section of the District Six Museum is being developed in the old Sacks Futeran Building in Buitenkant Street. The site consists of four buildings including and old church. More than R3m will be spent on the redevelopment, which will house a community arts project and a performance venue, as well as an arts and media library. About R2m is also being spent on renovations of Namaqua House on Greenmarket Square. Seven floors of the building will be refurbished and marketed on a sectional title basis at R1.2m each. A R150m trademark office building is being developed on the old power station site on the Foreshore by joint partners Ikwezi Investment Trust, an empowerment company, and Meridian Property Holdings for the owner, JSE-listed Sycom Property Fund. The anchor tenant will be law firm Sonnenberg Hoffmann and Galombik, which has naming rights to the 14-storey, wedge-shaped building. The firm has signed a 10-year lease for about 7 000m2. The capital lease value has been estimated by property economists at about R80 million. Edge Properties and JHI Development are planning a R120 million mixed-use development on a vacant site on the corner of Buitengracht and the Western Boulevard. About 80 of the units will be sold as sectional title apartments. And in the Cape Quarter in Green Point, the entire city block is currently being redeveloped. The 5 800m2 of commercial and retail space in the block has been fully let before completion.
Publisher: Business Day
Source: Business Day
R1.6bn investment expected in 2003 is the economic result of urban renewal
Posted On Thursday, 15 May 2003 02:00 Published by eProperty News
Cape Town CBD development on a roll GRAHAM NORRIS Property Editor THE R400 million redevelopment announced earlier this week of two city blocks in the historic Wale Street precinct by Irish company Howard Holdings is...
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