This was said, emphatically, by Brian Goldberg, Development Executive for Madison Property Fund Managers, the company handling the R60 million restoration, refurbishment and sale of these two historic and centrally situated buildings.

“Prices at this level (on average R7 500 per m2) are simply not available in similar developments elsewhere,” said Goldberg.  “These two developments are unique among buildings close to or within the CBD, particularly taking into consideration their position and funky feel.  New office buildings in the same East City precinct, literally a stone’s throw away, such as The Boulevard and The District, which is now home to Ogilvy, are both commanding prices of over R20,000 per m2.

“Buying at current prices,” said Goldberg, “will enable the new owners effectively to peg their rentals by tying them into low bond repayments.  This is especially relevant in a rental market such as that in which we currently find ourselves, where rentals continue to rise.  Similarly, those buying as an investment will find that they will achieve significant rental income growth from the relatively low base”.

Goldberg said that this eastern precinct is now “a destination of choice” for many Cape Town professionals, businesses and other enterprises.  It has, he said, proved to be particularly attractive to the city’s creative community, such as advertising agencies, architects, designers, photographers, art galleries and interior decorators.

“Any aerial view of Cape Town today,” he said, “will at once reveal that the eastern precinct is where future expansion has to take place.  Short of reclaiming land from the ocean, there is simply nowhere else to go.”

“Both Newmarket Junction, an art deco building, and Buchanan Square with its Armoury, are,” said Goldberg, “great examples of the historic legacy of this eastern side of Cape Town.  They complement and tie in with other heritage buildings and especially on our refurbishment is making good use of the traditional colour schemes.  The charm of the old buildings is now more apparent than ever.”

Substantial common area upgrades and the doubling of the parking ratio, these buildings have helped create considerable buyer interest – and the purchasers of the first 5 000m2 of are already moving in.

Buchanan Square, with 18 000m2, consists of three buildings, including the Armoury used in the 1930s to store weapons and ammunition.  The refurbishment contract here, said Goldberg, will preserve the face brick exterior and industrial features such as wrought iron fire doors and columns. Newmarket Junction, with 10 000m2, he added, is also looking attractive now that its refurbishment is well under way.

Other advantages of the two new offerings are that they have quick, easy access to the freeway networks and central public transport system, including the Cape Town station which itself is under reconstruction.  All the buildings are protected by sophisticated, round-the-clock security, including patrol guards and CCTV.

Sales, said Goldberg, have bucked the current market trends. 

“Buyers have again shown that, when it comes to moving businesses to the right address at the right price, there is never a bad time – but,” he added, “prices will not stay at these lower levels once the market begins to react positively to lower interest rates and other factors.” 

Buyers who have already moved in include the world renowned Michael Stevenson Art Gallery, The Inscape School of Design, Box Studios, furniture designers and manufacturers, the well-known ceramicist, Lisa Firer, and Orange Films.