ABSA has demonstrated its confidence in the Durban central business district, announcing a R90m proposal to upgrade its Smith Street building into a regional head office.

The group will be among a few remaining with central business district (CBD) head offices, following the exodus in recent years to the decentralised zones in Umhlanga Ridge and Westville.

Moreland has been the instigator in seeing a R10bn property boom on the Umhlanga Ridge as companies have looked to escaping a degenerating city centre.

The establishment of the regional offices sees the banking group relocating its offices from several leased premises in the CBD to the Smith Street building.

Absa real estate asset management property manager Craig Francis said most of the group's leases were scheduled to expire over the next few years.

Management decided 18 months ago to investigate the possibility of consolidating into a single building. Francis said that, based on rental forecasts, the new regional office would yield a R40m net rental saving over the next decade.

The building will undergo extensive renovation to meet Absa's corporate image and preference for modern architectural styles.

The project involves an external refurbishment, the erection of a new parking area, as well as the total renovation to the internal foyer and the 14 floors of office space. Demolition will commence later this year. The project is expected to be completed within 15 months, resulting in an Agrade building.

The professional team includes architect Elphick Proome, project managers Maponya Developments, quantity surveyors Francis Williams-Jones Kgole and structural engineers WSP Africa. Absa will also invite local construction companies to tender .