IN WHAT will be the first major inner city development in SA for a black economic empowerment group, Coessa Holdings in partnership with Johannesburg businessman Wandila Mtolana plans to develop a new R390m residential, commercial and retail lifestyle centre.

The centre, to be called Icon, and be marketed by Seeff properties, will be situated on a 4000m² site in the Foreshore area of Cape Town . It is adjacent to the new Investec head office , near the Cape Town International Convention Centre and the Victoria & Alfred Waterfront.

It will comprise a total of 24000m² of space, of which 3000m² will be devoted to retail space, 5000m² to office space, and the balance to three apartment blocks, of which two are 18 storeys high and the third nine storeys.

Launching the new centre in Cape Town yesterday , Seeff MD Ian Slot said a total of 176 apartments would be on offer, ranging from 55m² to 156m². They were priced from a minimum of R995000 (including VAT, transfer duty and parking space) to as much as R5,7m for the top penthouse the equivalent to R25000/m².

This compared to the prices of apartments at the Waterfront, currently selling for more than R40000/m².

The ground floor of the Icon complex would offer retail space for boutique shops and restaurants, with the first, second and third floors designed for office space.

Coessa Holdings director Shabodien Roomanay said yesterday that as part of the group's commitment to empowerment, it would set up a trust and donate a share of its profits towards the construction of housing for previously disadvantaged individuals.

Coessa would contribute a flat R1 m to the trust , and 20% of the difference between a baseline of R17000/m² and any price achieved above this level.

A tender for the construction of the complex was expected to be published in August, with construction scheduled to begin in November, and occupancy in about June 2006.

Andrew Boraine, head of the Cape Town Partnership, said the new development was in line with goals to attract residents back to the central business district.

Western Cape premier Ibrahim Rasool said the development would be on derelict ground, and would therefore add substantial investment value to the area.

Slot said the centre offered attractive long-term rental opportunities for investors.

"The Waterfront is the most-visited tourist destination in Africa. This positions Icon in a unique rental environment."

Slot said that, according to conservative projections, an investor could expect a net return of 7,37% on an investment after one year, with an occupancy level of only 50%. The net return would increase to 9,11% in the second year with a 55% occupancy level and to 14,59% in year four, with 70% occupancy.