The Cape Town Partnership has confirmed that investment in the Central City reached just under R 3.4-billion in the last calendar year.  Cumulative figures since statistics were first accumulated in 2000 amount to R 12.5-billion.

The annual total comprises the capital value of new leases, new developments, investment purchases, and upgrades and renewals.

The most notable developments include 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.  Amongst these are Mutual Heights and Cartwright's Corner.  

A significant amount of investment and upgrades during the last calendar year have occurred in the East City Precinct. 

Currently, in the Central City, there are 35 buildings that are being upgraded, or which are in the planning pipeline. 

"Continued and growing investment interest in Cape Town's Central City is evident from these figures", says Andrew Boraine, Chief Executive of the Partnership.

"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 them a high level 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 said.

“Real rentals have shown an upward trend from 2001, and this growth has been achieved despite the fact that significant commercial decentralisation has taken place particularly since 1997", says Wendy Hartshorne, SAPOA Chairperson.

"Investment property capitalisation rates for Cape Town's Central City are starting to become stronger as the positive effects of the Partnership and the Central City Improvement District have materialised.

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

Some 33 619 direct jobs have been sustained as a result of development in the Central City since 2000, mostly in construction. Indirect jobs created for the entire period since the Partnership’s formation have not been calculated, but could easily double the overall job creation figures. 

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".