CAPE TOWN's inner city, shaking off its crime and grime' image thanks
largely to the efforts of the Cape Town Partnership, is in the throes of a
huge surge in the residential property market.
In the first six months of this year, investments in property in the CBD
have exceeded R3 billion, with the emphasis on buying up former office
buildings and converting them for residential use. The aim of an inner city
with a substantial residential population, and bustling with life after
hours, no longer seems so improbable.
It all began with the news at the beginning of June that Old Mutual
Properties had decided to launch a sectional title redevelopment of the
former Old Mutual head office building in Darling Street, which was no
longer in demand as an office block.
The building, which is regarded as an art deco' treasure, and for some time
was the tallest building in Africa apart from the Pyramids, is to be known
as Mutual Heights.
Announcing the plan, Old Mutual Properties' executive director Rowland Chute
said the project would add to the hoped-for revitalization of the city.
"Moreover, a successful conversion will mean owners will enjoy an address
that is regarded as a South African architectural masterpiece, and the
building's outstanding features can be preserved in a new guise."
The redevelopment would include the sub-division of the office areas into
apartments, the creation of an internal atrium with access galleries,
provision of a gym, launderette, new plumbing and electrical supplies, and
exterior and roof refurbishment.
They would be selling apartments off plan, he said, and would proceed with
the conversion subject to pre-selling 75% of the apartments.
He can hardly have been prepared for what followed. Pam Golding Properties,
who were awarded the sole mandate to market the apartments, were able to
announce that the 178 apartments - ranging from a penthouse apartment at
R4,5 million to smaller apartments costing from R273 000 to R390 000 - had
been completely sold out in three weeks.
In the latest development, three historic buildings in Adderley Street are
to be restored and revamped into a new boutique hotel, sectional title
luxury apartments, a restaurant and cocktail bar.
The buildings, occupying 25-31 Adderley Street, include the gracious Pearne
and Fabian buildings, built in 1903 and 1906, and the 11-storey former
Guardian Life building. The investment is valued at R20 million, and
apartments are expected to be priced in a range from R500 000 to R1 million.
This development, to be known as The Adderley, will involve the restoration
of the ceramic and granite facades of the Pearne and Fabian buildings, The
interiors of the buildings and of 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, and a central feature will be an 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
will be managed as a boutique hotel for the remainder of the year, with
owners being guaranteed a minimum rental income for the first 12 months,
which will be extended each year.
Urban Blue, which will be responsible for the development of The Adderley,
is headed by Cape Town-raised Mark Tuckwell, who has had 25 years'
experience in the Australian property development and management industries.
Several developments make this an optimal time to undertake this exciting
project, he says. These include the constantly improving flow of tourists to
Cape Town and the increasing numbers of business visitors from South Africa
and overseas, boosted by the completion of the Cape Town Convention Centre.
Other considerations are the success of the Cape Town Partnership in cutting
crime and grime, the growing interest of the international film and
advertising industries in the city and urban renewal depreciation allowances
announced in the recent Budget, or existing hotel depreciation allowances,
which give tax breaks to potential investors.
So far so good, you might say - in fact very good. But there is more to
come. Seven other properties in the Cape Town CBD have been bought by an
Irish property development company Howard Holdings plc. These include the
Cape of Good Hope building at 117 St George's Mall, the Board of Executors
building in Wale Street, the Nedbank Syfrets Private Banking building at 140
St George's Mall, the Nedcor investment Banking building at 148 St George's
Mall, the old Cape Times building in Burg Street, and 21 - 23 Church Street,
once home to the legendary Caf' Royal.
Details of the form this redevelopment will take have not yet been
finalised, but it is believed that the main emphasis will be on residential
apartments, with some retail development. The cost of this redevelopment
project is thought to be in the region of R500 million
There has been considerable interest in Cape Town recently in the Irish
media. An article in the Irish Times of June 19 by property editor Jack
Fagan, for instance, highlighted the launch over the week-end of June 21/22
at a leading Dublin hotel of Lagoon Beach, a luxury apartment development on
the sea near Milnerton in the Cape by the Dublin-based company Mountbrook
Homes. The development was designed by the South African firm Stauch Vorster
in conjunction with the Dublin firm of Murray O'Laoire
Mountbrook Homes is already involved in two other apartment developments in
Cape Town, and other Irish firms are also taking a keen interest in the
area.
Publisher: Cape Business News
Source: Cape Business News
It's revival time in Cape Town's CBD.
Posted On Monday, 21 July 2003 02:00 Published by eProperty News
CAPE TOWN's inner city, shaking off its crime and grime' image thanks largely to the efforts of the Cape Town Partnership, is in the throes of a huge surge in the residential property market.
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