The City of Cape Town’s Council has given its in-principle approval for the granting of long-term rights to use, control and/or manage a large gravel overflow-parking site next to the Cape Town Stadium on Granger Bay Boulevard. It is expected that the development of this site will be a catalyst for the commercialization of the Stadium Precinct which holds investment- and job creation benefits for the people of Cape Town. The City also wishes to enhance public use of the space.
Based on the City’s in-house valuation, the market rental value of this property, comprising a graveled parking area site of 7 385 m² in size, is estimated to be either an upfront payment of R100 million (excluding VAT) or a monthly rental of R750 000 (excluding VAT). This rental is valid for a proposed lease term of 25 years, with an escalation of 8% per annum.
The City expects the construction value of the site to be approximately R600 million.
“Importantly, the City will retain ownership of this site as a strategic asset. It is situated in a desirable location near the retail hub of Green Point with good access to public transport. It is considered suitable for retail and commercial development”.
“For many years, we have worked in a dedicated and creative manner to come up with options that will enhance the financial sustainability of the Stadium Precinct by encouraging greater public usage. We believe that this proposal contains the appropriate development mix,” said the City’s Executive Deputy Mayor, Alderman Ian Neilson.
The Record of Decisions (Environmental Impact Assessment) of 2007 was amended by the Western Cape Government’s Minister of Environmental Affairs and Development Planning on 28 October 2015. The subdivision and rezoning of the site to General Business Subzone 5 (GBS), which allows the development of approximately 29 000 m² in size of space, with a height restriction of eight storeys, was approved by the City in November 2015.
It is expected to be developed to provide a medium-rise complex of buildings incorporating parking, ground-floor retail and commercial components. It is expected that the development of the site will create a number of construction- and sustainable new jobs, specifically with regard to building cleaning, security and landscaping services. In addition, an envisaged retail component comprising 3 800 m² in size on the ground floor of the proposed development is expected to create further sustainable work opportunities.
The City engaged extensively with members of the public during the public participation process and they have considered and responded to the comments that were received.
All future developments on the property would need to adhere to the zoning conditions, including infrastructure requirements. A future lessee will be responsible for the development of the property, the upkeep and maintenance, and the security of the building(s) on the site. Design guidelines have also been proposed by the City’s Spatial Planning and Urban Design Department to ensure that the proposed construction on the site provides a good visual fit with the existing buildings in the area.
“It is foreseen that the tender for this development will be issued in June. It will be in line with our efforts to leverage City-owned assets to unlock investment and economic opportunities, while at the same time requiring the private sector to help us to invest in and to maintain public infrastructure,” said Alderman Neilson.