Total investment in Cape Town's Central City reached just under 3.4 billion rand in the 2003 calendar year, with cumulative investment since statistics were first compiled in 2000 amounting to 12.5 billion rand, the Cape Town Partnership confirmed.

The Cape Town Partnership is a public-private partnership formed in 1999 between the local city government, business owners and local property owners to provide for improvements and upkeep of various areas within the central city. One of its primary aims is to attract private investment into the city to help with its development.

Andrew Boraine, CEO of the Partnership, said the annual investment figure comprised the capital value of new leases, new developments, investment purchases, and upgrades and renewals. The most notable developments in 2003 included the conversion of historical and/or vacant buildings in the Central City, which were previously used mainly for office space, to residential apartments and for mixed use, including Mutual Heights and Cartwright's Corner.

At the same time, some 33,619 new direct jobs had been sustained as a result of development in the Central City since 2000, Boraine noted, mostly in construction. Indirect jobs created for the entire period since the Partnership's formation had not been calculated, but could easily double the overall job creation figures.

A significant amount of investment and upgrades during the last calendar

year had occurred in the East City Precinct. Currently in the Central

City, there were 35 buildings that were being upgraded or that were in the planning pipeline.

"Continued and growing investment interest in Cape Town's Central City is evident from these figures", Boraine commented.

"This was further confirmed at MIPIM, the world's largest international property investment exhibition held in Cannes, from where we have just returned after a week with the Department of Trade and Industry, the SA Property Owners Association (SAPOA) and representatives from Johannesburg, Durban and Cape Town.

"There is a significant amount of interest in Cape Town from a range of international investors, particularly in our urban revitalisation process, our public-private partnership model, and our niche industries such as call- centres.

"Pleasingly, we were able to confirm the high levels of domestic investment in our Central City, which gives international investors a high degree of confidence in our city. Domestic investment has remained constant at about 88%, which is a positive sign for Cape Town's economy.

"We are confident that many of the contacts established at MIPIM will lead to positive new investments in our Central City in the coming months", he added.

Meanwhile, according to Wendy Hartshorne, SAPOA Chairperson, real rentals had shown an upward trend from 2001, and this growth had been achieved despite the fact that significant commercial decentralisation had taken place, particularly since 1997. Investment property capitalisation rates for Cape Town's Central City were starting to become stronger as the positive effects of the Partnership and the Central City Improvement District had materialised.

"Right now the CBD office market offers excellent investment and unique accommodation opportunities," she observed.

Said Ruby Gelderbloem, the City's Property Management Director: "The City is confident that the health and success of Cape Town's Central City will prompt investments elsewhere and help to generate access to job opportunities throughout the metropole. The success of the Central City makes a strong case for public-private partnerships throughout the metro area".

I-Net Bridge18 March 2004