Mark Tuckwell, who bought three historic buildings in Adderley Street for R1.7 million late last year, has announced plans to convert them into a new R20m boutique hotel, sectional title luxury apartments and a restaurant and cocktail bar. This clearly illustrates the importance of timing in property development. Cape Town-raised Tuckwell, who has 23 years' experience in the Australian property development and management industries, said that when he bought the buildings, banks had been sceptical about their development potential, but things had "changed dramatically" since then. "In the last six months central Cape Town has improved out of sight," said Tuckwell. "There's a lot happening - other inner-city golden oldies being developed include the former Old Mutual head office building in Darling Street and the seven buildings in Wale Street and St George's Mall." Tuckwell, head of development company Urban Blue, said several other factors had contributed to the recent wave of acquisitions which promise to revitalise the inner city and inject millions into Cape Town's economy through construction work and indirect job creation. He said the Cape Town Partnership had "done wonders" in cutting crime and grime, increasing numbers of tourists were visiting the city and the completion of the Cape Town International Convention Centre would boost the number of business visitors. He said the urban renewal depreciation allowances announced in this year's Budget would give tax breaks to potential investors. Urban Blue's development, known as The Adderley, involves the historic Pearne and Fabian buildings, built in 1903 and 1906, and the 11-storey former Guardian Life building. The ceramic and granite facades of the Pearne and Fabian buildings will be restored to their former glory. Their interiors and the adjoining Guardian building will be rebuilt into 28 apartments to be managed as a boutique hotel. The ground floors will continue to operate as independent retail outlets. The back section of the Guardian building has already been converted into a 650-unit high-security parking lot that will service the hotel and nearby businesses. The hotel will include a cocktail bar, lounge and restaurant on the first floor. A central feature will be a historic balcony overlooking Adderley Street. A wind-sheltered sundeck and plunge pool will be built on the roof. The ground floor already has an established, upmarket coffee shop that leads into the development. Investors will buy the apartments on sectional title and may choose to stay in their apartments for an elected number of nights annually. The apartments, which will be priced from R550 000 to about R950 000, will be managed as a boutique hotel for the rest of the year. Owners will be guaranteed a minimum rental income for the first 12 months. This will be extended each year. The average apartment measures 59m2 with four zones for sleeping, washing, living and eating. "Each apartment will be brand new in every detail, apart from the basic shell and historic facade. The design will be modern and spacious. Finishes will be warm with natural textures, resulting in interiors that are natural, subtle and sophisticated. Apartments will be fully furnished with everything one would expect from a four-star boutique hotel." Buildings will have high security access with all entrances manned 24 hours a day, plus camera surveillance. Front doors and lift access will be swipe card operated. The professional team includes building contractors Grinaker LTA Construction Cape. The project will be managed by Alan Yates of MC2. Inquiries: Tuckwell on 082 422 3208.
Publisher: Weekend Argus
Source: Weekend Argus
Building conversion plan illustrates importance of timing in development R1.7m investment proves a pot of gold.
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