Auction of entire block in heart of Cape Town CBD
News > news - 02 Oct 2008
Cape Town's CBD has undergone extensive investment in the last decade.

According to Mayor Helen Zille, approximately R30 billion worth of
investment in new developments has been earmarked, with two thirds of it
coming from the private sector (Business Day 17 Sep). Zille continues to
state that the Cape Metro region as a whole is expected to see 9.5% growth
in medium term fixed investment.

Cape Town is hot property for foreigners and locals alike. A far cry from
its sleepy reputation of sunshine, sand and lazy vacations, the Western Cape
has awoken with an appetite directed to business, services and accommodating
both industry and tourists. Public investment is committed to realizing the
opportunity presented with the 2010 Fifa Soccer World Cup. Extensive road
works and expansions are underway; the first tract of the Bus Rapid Transit
System is in progress to the tune of R3.1 billion, complimented with R4.2
billion being directed towards the expansion of the harbor.

Hot on the heels of such upgrades, including a R2,5 billion airport facelift
and expansion, asset sales and services company the Alliance Group will be
taking an entire block in the CBD to auction. "The CBD lends itself ideally
to mixed use application. Examples like Mandela Rhodes Place and the
surrounding Squares of Harbour Edge, St Georges Mall and Heritage Square,
prove that residential, leisure, retail and office space can operate in
harmony and provide holistic turnkey living for resident s, businessmen and
tourists alike", comments Ryan Joffe of the Alliance Group.

The site is spectacularly positioned, with a strategic footprint as it
borders four key city roads, namely Loop, Leeuwen, Bree and Dorp Street. The
11 existing buildings comprise a footprint of 2850m2. Council approval is
already in place for an 18 storey contemporary building comprising 21,000m2
of lettable area and 647 parking bays. "Parking and office space is at an
absolute premium in the CBD, and part of being committed to upgrading the
aesthetic appeal of the city is to ensure key facilities are made available
to the area", continues Joffe.

In addition to the current use/approvals which are office and retail, the
current zoning on the site also permits mixed use options such as hotel and
residential. Brendan O' Brien and Paul Greenwood from Urban Space Property
Development have spent the last four years assembling the site and obtaining
council approvals.

Listed property fund Old Mutual is currently underway with a massive
development of commercial office, retail and hotel accommodation. To date,
it will be the tallest building in Cape Town and their largest Cape
development. Such mammoth investments by such influential players' stands
testament to the strategic nature of prime parcels of land in the CBD,
supported by the public investment that is committed to enhancing
facilities, hotel and office space.

The property will be auctioned at 12pm on the 29th of October at the Table
Bay Hotel.

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