The Durban central business district (CBD) will get a shot in the arm through a R127m project to create additional parking and a new retail arcade at the Old Mutual Centre office tower.

The project — which involves the demolition of two buildings in Gardiner Street — will bring the value of developments in KwaZulu-Natal by Old Mutual Property Investments to almost R500m, says business development executive Brent Wiltshire.

“The project reflects confidence in the CBD as a premier retail and office location,” he says.

“It addresses a demand for on-site parking, which is a major requirement in the CBD, and will enhance the retail offering.”

The buildings involved are Mutual Building in Gardiner Street, opposite the city hall, and neighbouring Gardiner House.

The building at 300 Smith Street, which forms a primary entrance to the retail arcade between Smith and West streets, is to be refurbished.

The combined site is near several other Old Mutual property investments — including The Marine, Durban Bay House and the Royal Hotel.

The group says 474 parking bays will be added and the retail space will be increased by 1100m² .

The project, due for completion next year, is the fourth major development in KwaZulu-Natal announced by Old Mutual over the past year.

Others are R250m extensions at Gateway Theatre of Shopping, in Umhlanga, to enlarge the south mall and parking facilities and add a Virgin Active health club at the northern end of the complex; and a R102m industrial park at Mahogany Ridge, the Pinetown light manufacturing and distribution address.