select
|

Development worth nearly R3.5 billion planned for the Central City

Much has been written in the media over the past year about the success of the Cape Town CBD, according to Rob Kane, Chairperson of the Cape Town Central City Improvement District (CCID). “So much so,” says Kane, “that we’re being touted as an ‘overnight success story’ with development of nearly R3.5 billion in the pipeline.”


Click the image for a larger version

Speaking at a business breakfast held on Thursday 4 June that was largely attended by property companies involved in investment and development, Kane said: “People are asking why, suddenly, is the CBD so popular? Why are we suddenly seeing so much investment happening here and why, now, do so many people want to come to live here?”

The overnight success, noted Kane, has been one that’s been 15 years in the making. In November this year, the Cape Town Central City Improvement District will celebrate 15 years in operation, while its next five-year business plan begins on 1 July.

Thanking the CCID’s partners at the City of Cape Town and Central City property owners for the confidence they had shown in the area, Kane felt that “together, we’ve laid a solid foundation over the past decade and a half, and now investors are voting for the CBD with their rands and developments are rising from this foundation.”

At the CCID’s last business breakfast, held in 2014 in the then newly opened Portside building, an attempt had been made to predict how the skyline of the CBD would continue to change over the course of the next five years.

But this was something now quite difficult to do, said Kane: “Because investment and development are truly catalysing the Cape Town CBD. They are enabling us to transform, and what’s happening in the CBD today really is akin to the science of chemistry – the bringing together of elements that together form a reaction far greater than the sum of their parts.”

Each year the CCID publishes a guide – The State of Cape Town Central City Report – that looks back at the previous year in terms of assessing the economic climate of the CBD.

“At this event a year ago,” said Kane, “we had just released the 2013 report, and noted that the value of property in the CBD, according to the City’s official property valuations for the 2013/14 financial year, stood at around R24 billion.”

It was also noted at the time that, in addition to this R24 billion and the R1.6bn Portside building that had just opened, there was approximately another R3.4bn in the pipeline somewhere between construction and planning to come online within the next five years.

However, while compiling the latest report (2014: A year in review) the CCID’s research team documented a further R1.46bn worth of development underway or on the cards.

“And astonishingly,” noted Kane, “between the release of the 2014 report and today, we now have conservatively seen another R1.95bn of investment that has been announced in just the past three months. I say ‘conservatively’ as there are some investments and refurbishments whose figures we have not yet been revealed by developers.”

The new confirmed investments included:
·         A R70m upgrade by the Department of Public Works to the Master of the High Court building in Albertus St.
·         A new R200m residential development called The Sentinel on the corner of Loop and Leeuwen streets being developed by the Nova Group in association with the Dogon Group.
·         Tsogo Sun’s development of the SunSquare and StayEasy hotels on the site of the old Tulip Hotel in Bree Street, totalling R680m.
·         The transformation of the old Triangle House in Riebeek Street into a R1billon residential and hotel development, a collaboration announced by Radisson and Signatura just last week, to be opened by September next year.

Said Kane: “A year ago, we predicted that residential property would be the new wave of development, and we are thrilled in particular to see this happening as demand has significantly now outstripped supply in the Central City. And we think that people wanting to live here and be closer to their places of work and play is the biggest thumbs up any CBD can receive in terms of catalysing a downtown area.

“Add to this the growing accolades we are receiving as a city in which to do business, and we are reminded how important a strong CBD is for the metropole as a whole.”



  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 23 Feb 2018
      RE/MAX Property Associates’ Table View Office, which services property buyers and sellers along the Table Bay coastline and surrounds, has recently sold a home in Woodbridge Island for R11 million – the highest price paid for any home in the sought-after security complex.
    • 23 Feb 2018
      Choosing to invest in an overseas property can be daunting. But as more and more investors recognise the value of a diversified portfolio that includes property outside of their own country of residence, international property investment is growing in popularity.
    • 23 Feb 2018
      The positive change in South Africa’s political landscape is paving the way for an upswing in the local property market.
    • 22 Feb 2018
      An excellent credit score is one of the most priceless assets a potential home buyer can have. This tool has the power to secure favorable mortgage and refinancing rate, influencing everything from the size of the loan repayment to the interest rate on the home loan.
    • 22 Feb 2018
      What do you do if you love your home’s location and the area, but the home no longer fits your growing family’s needs? Do you stay and renovate your existing home or find a home that meets your developing criteria?
    • 22 Feb 2018
      While every owner wants to sell their property at the best possible price, overpricing a home can be the kiss of death for a sale.
    • 21 Feb 2018
      Given the hand they were dealt, government has performed a delicate balancing act which it is hoped will serve to reignite confidence in investment in South Africa, regain our global credibility and satisfy the credit ratings agencies, says Dr Andrew Golding, chief executive of the Pam Golding Property group.
    • 21 Feb 2018
      The real estate mantra, ‘location, location, location’ remains a strong market influence regardless of the prevailing economy, with suburbs like Rondebosch enjoying the buffering benefit of being ideally situated.
        
    X
    Subscribe to the MyProperty Newsletter

    Name  
    Last Name  
    Email Address  
    Email Frequency
    select
    X
    Share this Page

       
    For Sale Property
    Rental Property
    More Options
    About
    Connect with us
    FEEDBACK