Absa Bank has partnered with the Amdec Group to develop the first tower of the multi-billion Rand Harbour Arch project in Cape Town’s Foreshore.
One of the largest deals the Absa Commercial Property Finance division has done in recent years, Absa has provided Amdec with a loan of R1.43 billion in addition to an existing facility of R210 million to bring the project to fruition.
The construction of Harbour Arch Tower One – which includes parking, street level retail, an eighth-floor lifestyle podium lined with bustling coffee shops, pavement cafes, and restaurants as well as 432 luxury apartments – is underway and expected to be completed by April 2023.
“The entire Harbour Arch development represents a private equity investment of R15 billion into the City of Cape Town with a further investment in public infrastructure upgrades and a pipeline of municipal rates and utility revenues in perpetuity” comments James Wilson, Group CEO of Amdec.
“Moreover, the project will create in the region of 20 000 job opportunities for those in the building sector now and, over the longer-term, many more employment opportunities via the precincts retail, hotel and hospitality sectors.”
Mike Mortimer, Head: SA Coverage, Absa Commercial Property Finance, says: “Considering the economic downturn currently being experienced, we are thrilled to be associated with a significant development of this kind, one that augurs well for the future of Cape Town”.
“A fundamental principle of Absa’s business is supporting developers and investors with proven track records in their chosen fields of expertise. The Amdec Group has an outstanding reputation within the industry and based on the quality and commercial success of their existing developments, we are comfortable to extend significant funding for the Harbour Arch project.”
The development of Tower One of the Harbour Arch follows the success of the Amdec’s award-winning Melrose Arch mixed-use precinct in Johannesburg and it is a clear indication that the South African public has embraced the concept of new urbanism, where residential, commercial, retail, hospitality and lifestyle elements are brought together in one all-encompassing environment.
Amdec has partnered with Absa on a few of the group’s other projects, including The Yacht Club in Cape Town, Westbrook in Port Elizabeth, the recently completed Melrose Square at Melrose Arch, and several Evergreen Lifestyle villages.
“We are delighted to once again have the support of Absa in helping us to realise our vision for a new real estate landmark in the City of Cape Town,” says Wilson.
He says Harbour Arch will be the first large-scale mixed-use precinct in the Cape Town CBD. “It will encapsulate all the principles of new urban living, and offer a safe, convenient, sustainable and enjoyable community-focused environment where Capetonians from all walks of life can live, work, and play within an iconic landmark setting”.
“It is our hope that Harbour Arch will help to stimulate the local economy, boost investor confidence, and act as a catalyst for further development of the Foreshore area.”