The Symbio-City project involves the building of a R17 billion hybrid office and retail development in Centurion with plans to include the highest building in Africa.
After an outcry in the press recently it appears that the project is still being considered but that there is a “fair amount of work to be done between the conception of a development and the actual implementation”.
These were the words from Johan Stanbury from Cresco Props, part of the consortium of promoters of the project.
Speaking to Moneyweb, Stanbury said: “What has been done is a desk top study based upon extensive research. A number of the results of this research still has to be verified. There is a fair amount of work to be done between the conception of a development and the actual implementation.”
But one of the biggest problems, according to many interested parties – including Org Geldenhuys from property management and development company, Abacus DIVISIONS – is that, in order to be sustainable, landlords would have to charge rent in excess of R200 per square metre.
“This is punitively high,” he said. “Who is going to pay rentals as high as this when there are top grade office park developments, such as Highveld Techno Park, which are charging rentals starting at R75 per square metre – and is approximately one kilometre away from the planned Symbio-City site? Despite the fact that Geldenhuys has various interests in Highveld Techno Park, he does raise valid concerns. "There is a very good chance that this development could, ultimately, become a white elephant. But, unfortunately, it could negatively affect business in the Centurion area – where there is currently more than 40 000 square metres of still-vacant office space.”
Geldenhuys said while he applauded the “energy” of the consortium who is championing the project, he argued that the City of Tshwane should rather focus on expanding the existing infrastructure in Centurion, and first “properly fix problems”, such as finally cleaning the Centurion lake, which is “akin to a cesspool and is driving business away from the area due to its high pollution risk, its lack of visual appeal, and its lingering smell.”
He pointed out that time and money would be better spent on creating a better overall business environment, including installing optic fibre for improved telecommunications – which is currently problematic.
Meanwhile, Rubesh Pillay of the mayoral committee recently reported in the press that the city’s coffers will not fund the project. “The project will in fact be funded through private capital raised at risk by the developer of the project.”
Pillay also believes that the city, as a result of the development, will benefit from “substantial income” through property rates and services generated by it as the land still belongs to the municipality.
But concerned businessmen such as Geldenhuys dismissed this assertion as a “moot point”. “This is all conjecture right now. This is a hugely ambitious project which might just fall flat on its face. But the question we should rather be asking is: do we really need it? ”
“Besides pondering what this would cost the tax payer – and would the pivotal need for this project is – centurion already has a very large retail centre which ably suits the approximately 300 000 residents. With this centre – and the other retail outlets in the area- what need is there for this hybrid office and retail development? It makes no sense whatsover, expect, perhaps, for council members to leave a mark on their office tenures by leaving some kind of legacy?
But, in all earnesty, do we need a legacy such as this – the largest building in Africa – when the council needs to look at more pressing social and infrastructure issues?”
“Centurion has also been made more accessible than other business nubs – such as Sandton – because of its easy access via the Gautrain. This is something that can be capitalised on. There really is no need to embark on such a massive – and wasteful – project” he concludes.
