The development, known as The Adderley, has aroused "huge investor interest" since it was announced earlier this month, reports Urban Blue director Mark Tuckwell.
Three historic buildings, occupying 25 to 31 Adderley Street, are to be restored and revamped into a new boutique hotel, sectional title luxury apartments, restaurant and cocktail bar.
The buildings include the old Pearne and Fabian buildings, built in 1903 and 1906, and the 11-storey former Guardian Life building.
They form part of the city block which was redeveloped into a major parking garage and retail and office space two years ago by the Adderley Development Syndication.
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.
Owners will be guaranteed a minimum 7% gross return by the developer in terms of the contract for the first 12 months.
Prices start at R510 350 (excluding VAT) for a fully furnished and equipped 39.5m2 apartment with a high-security parking bay. The largest fully furnished and equipped 88m2 apartment with parking costs R1 005 200 (excluding VAT).
Each apartment will be brand new in every detail, apart from the basic shell and historic façade, says Tuckwell.
"We've already received numerous inquiries about The Adderley, mainly from UK investors," says Laurie Wener, manager PGP City Bowl and Atlantic Region.
"Overseas buyers want a stake in the Cape Town property market, offering good returns, without the hassles of letting. The option to enjoy the apartments for three to four weeks a year is an added bonus.
"Other selling points are the prime location in a historic area, high security, parking, plus tax breaks from existing hotel depreciation allowances and urban renewal depreciation allowances announced in the Budget."
Building contractors are Grinaker LTA Construction Cape. The project will be managed by Alan Yates of MC2. - Cape Argus
Publisher: Cape Argus
Source: Cape Argus
