Five new major property developments have gone into the planning phase and another seven proposals have been initiated in Cape Town’s CBD since the beginning of the year.
This is according to the Cape Town Central City Improvement District (CCID), which estimates the combined minimum value of planned and proposed developments for the Central City to be more than R2 billion.
CCID Communications Manager Carola Koblitz, who edits the organisation’s annual State of the Cape Town Central City Report says the 12 new developments have all been announced since the CCID compiled its last Property Investment Update at the end of 2015.
Koblitz says: “We keep tabs as far as we can on all development underway or on the cards in the Cape Town CBD. The minimum value of projects completed during 2015 was R987 million, and that of projects currently under construction is R4.571bn.”
“The minimum value we can currently ascribe to new projects in the planning phase is R912m, and well in excess of R1.1bn for developments at the proposal stage. We say ‘minimum value’ as we rely on information from those developers who are prepared to publicly attach a value to development; not all are willing to reveal these figures, so the eventual investment amounts will always be higher.”
The five new developments that have gone into planning since the publication of the 2015 SCCR are:
· 4 Loop Street, a mixed-use building upgrade that will include a residential component, by FWJK Developments on behalf of Berk Property Holding (estimated value R20m);
· The Telkom Exchange in lower Long Street on the Foreshore that involves a mixed use building upgrade by Telkom (value TBC);
· The redevelopment of the Mike’s Sports site on the corner of Strand and Bree streets by Gera Investment Trust (value TBC);
· The upgrade of The Capetonian Hotel at Pier Place on Heerengracht by Raya Hotels (estimated value R200m); and
· Urban on Bree, a residential extension in planning for completion in the last quarter of 2017 on behalf of Urban On (value TBC).
The seven new development proposals currently on the drawing board since the publication of the 2015 State of Cape Town Central City report are:
· Zero2ONE on the corner of Adderley and Strand streets, which is a new development proposal by FWJK Developments and is mixed use including parking, retail, hotel and residential components (value TBC);
· Mixed use upgrade and extension to Cape Town Station in Adderley Street due for completion in mid-2019 (estimated value R1.1bn);
· Roggebaai Centre on Christiaan Barnard Street, a proposed new commercial build for Ingenuity (value TBC);
· Spindle, a proposed mixed use redevelopment on the corner of Spin and Plein streets with commercial, retail and residential components envisaged (value TBC);
· The development of the Culemborg Quarter, the block between Nelson Mandela Boulevard and Christiaan Barnard Street, into a mixed use development. Currently at artist’s impression stage (value TBC);
· The 28-storey 16 on Bree next to Portside by FWJK Developments (value TBC); and
· The 36-storey Goldies on Buitengracht, also next to Portside, proposed by FWJK Developments (Value TBC).
Zero2One on the northwest corner of Strand and Adderley streets (across the road from Cape Town Station and Adderley Street’s MyCiTi station) is a proposed 42-storey building, which at 148m in height, would become the tallest building in Cape Town when topped out.
It is set to have 624 apartments, 760 parking bays and 6 000m² of retail space. A public access viewing deck with 360-degree views of the CBD is also included in FWJK’s proposal. Two other FWJK projects in the CBD are the proposed redevelopment of 16 Bree Street between Buitengracht and Bree Street next to Portside into a 28-storey mixed used development including a residential component as well as Goldies on the same city block (but facing Buitengracht) into a 36-storey mixed use building.
Rob Kane, Chairperson of the CCID, says one of the most thrilling aspects for the organisation is to see the spread of development occurring across the entire footprint of the CBD – from the numerous new builds going up in the Foreshore area (which includes the new Netcare Christiaan Barnard Memorial Hospital) to the current refurbishment of important public buildings such as schools, courts and museums in the older part of the CBD.
“Every cent spent on improvement means increased footfall into the Central City, ever-increasing amenities for all Capetonians and visitors to enjoy, and expanded all-important job and economic opportunities”.
“In terms of developing nodes, we have already seen how the reestablishment of businesses in the Bree Street corridor is transforming this entire street, particularly towards its lower end closer to the harbour”.
“With new developments in the Foreshore area including the opening of facilities such as the new Virgin Active gym, the on-going upgrade of the Artscape complex, new office complexes rising and new retail offerings such as the Foodlovers Market, we have no doubt that other retailers and businesses are already looking towards this area and it will be transformed within the next year or two, particularly as the V&A Waterfront develops in this direction.”
Kane says the CCID also eagerly awaits the City’s determination on the submissions for the Foreshore Freeway Precinct project, and hope that the outcomes will live up to the expectations being placed on this area’s transformation – particularly with the possibilities around the provision of affordable housing.