Old Mutual will continue to be a net investor in the Johannesburg CBD, says Colin Young, head of asset management at Old Mutual Property Group, despite a successful auction held by Auction Alliance in Johannesburg.

“The properties currently owned by Old Mutual are spread around the CBD. Our strategy is to consolidate assets and to focus on a node where there is already substantial Old Mutual investment. This key node is around Pritchard and Harrison Streets near the City Hall. Proceeds from the auction of some Old Mutual buildings in the CBD will be re-directed into this key node where other developments are under consideration. Old Mutual is also committed to the Newtown development.

“In addition, Old Mutual is continuing to invest in the joint venture with City Property Administration to redevelop existing office buildings into apartments for the letting market.  The first of these is the recently completed Plaza Place in Jeppe Street and will be followed by other projects to provide secure, affordable, quality CBD residential accommodation.

“The joint venture was prompted in part by the progress made by the Central Johannesburg Partnership, the Johannesburg Development Association and the city authorities in revitalising the CBD and in improving security there.  Given its infrastructure, the city still holds many attractions for city dwellers, from shoppers, to residents to office workers. And of course for the owners of the buildings within which all this activity takes place.

“The office-to-apartment conversions are part of a development pipeline  worth more than R10 billion  throughout South Africa by Old Mutual Property Group. The projects include several for independent and corporate property owners such the Orlando Ekhaya project by the Johannesburg Property Company. The Orlando development involves the construction of a shopping centre, 700 houses, office blocks and 150 lakeside loft apartments.  “

Other projects now under way or nearing completion are:

• a R105 million redevelopment of East London’s Vincent Park Shopping Centre, which will add a new mall in the north east corner of the complex.
• a R104 million refurbishment of The Link Shopping Centre, Cape Town. It will connect with Cavendish Square, an adjacent Old Mutual property.
• a R107 million extension of Bayside Centre, the Tableview, Cape Town, shopping centre jointly owned by Atlas Properties Ltd and Old Mutual
• a R102 million industrial park on a 7,4 ha site in Goodwood Road, Mahogany Ridge, the key Pinetown warehousing and light manufacturing address. The development is in response to a shortage of large industrial space in greater Durban.
• an R88 million expansion of parking facilities at Menlyn Park Shopping Centre, Pretoria. This will add another 1 750 covered bays.
• an R83 million conversion of Steyns Building in Schoeman Street, Pretoria into 367 apartments. The project is part of the  joint venture with City Property Administration to convert redundant office space into apartments for letting.
• an R83 million expansion at Phumelela Park, an Old Mutual industrial park at Montague Gardens, in response to rising demand for large industrial space in greater Cape Town.
• a R67 million expansion at Gateway Theatre of Shopping to house a state-of-the-art Virgin Active health club for residents and workers in the fast-growing north Durban node around Umhlanga Ridge and the new town centre there.
• a R20 million upgrade of Menlyn office park, Pretoria.
• a R20.5 million upgrade of The Zone @ Rosebank , Johannesburg
• over R600m will be spent on the upgrade of The Zone II near the proposed Gautrain station in Rosebank.
• a R27m contribution to the upgrading on the Menlyn road infrastructure.

A mixed use retail and housing development is being planned for Khayelitsha, Cape Town. A working partnership between the Old Mutual Group and the Department of Provincial and Local Government which is focused on building sustainable capacity in certain Project Consolidate municipalities, will treat the Old Mutual/Nedbank development initiative in Khayelitsha as a pilot exercise for possible replication in other municipalities. 

The development is proposed for a 10 ha site owned by Old Mutual in Site C, 1km from the Swartklip interchange.where there is good access to major arterials such as the N2 highway, as well as the R300. Site C is in the heart of one of the more affluent residential areas of Khayelitsha. The land provides an excellent opportunity for Old Mutual/Nedbank to respond to Government’s request to business to engage actively in the provision of affordable housing and sustainable development.

The development which will incorporate the social needs of the community,  will deliver construction related employment and skills transfer during the process and permanent employment related to the commercial precinct after the development.

Young says:”We also plan to invest heavily in the Midrand area over the next 10 years on our Zonki’ Zizwe site where the Midrand Gautrain station is located, and plans are well advanced in this regard.

“A historic announcement regarding our existing property portfolio will be made in due course as we prepare to launch a number of new generation real estate funds in January 2007.”

ISSUED FOR Old Mutual Property Group
BY Michael Kerkhoff & Associates

INQUIRIES Colin Young 021-530-4587
Mike Kerkhoff 021-424-5280