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Nedcor invests in CT CBD

Posted On Wednesday, 23 May 2001 03:01 Published by
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FOLLOWING two years of extensive location research, financial institution Nedcor Limited announced that it would invest in two adjacent buildings on Cape Town's foreshore

FOLLOWING two years of extensive location research, financial institution Nedcor Limited announced that it would invest in two adjacent buildings on Cape Town's foreshore for redevelopment into a state-of-the-art complex as its regional headquarters. The investment is worth over R100-million. The foreshore area is rapidly establishing itself as Cape Town's new financial district.
And in a separate move, Pick 'n Pay announced that it would open a store in the Cape Town CBD, its first in the CBD since Pick 'n Pay's establishment 35 years ago.
Derek van den Berg, General Manager Nedcor Property Services, said that the level of investment that was being demonstrated in the central city, particularly the new convention centre, the Roggebaai Canal Tourism Precinct and other developments, clearly illustrated the confidence that was being shown in Cape Town's CBD. The company had taken advantage of currently discounted property values as the market started to turn on an upwards trend.
Nedcor's new offices - situated at 45 and 57 Heerengracht on the Foreshore - are adjacent to the new R500-million International Convention Centre, enjoy excellent visibility from Eastern Boulevard and have superb views of both the mountain and the harbour.
Nedcor were assisted in the acquisition of one of the buildings by Golding Commercial Properties. This building will be demolished in its entirety and replaced with a new structure. This will be amalgamated into the adjacent building which will be refurbished to conform to a consistent style and finish. Demolition of one of the buildings is necessary in order to provide parking facilities in line with modern office requirements and to accommodate the IT infrastructure now critical to business specifications.
Pick 'n Pay's Jonathan Ackerman confirmed that Pick 'n Pay would open its first-ever CBD store in Primegro Property's Picbel Arcade, which falls between Strand and Waterkant Streets in the core of the city.
"We felt that the time was right for us to open a store in the central city. The position we chose is a prime trading area in the centre of the city which already attracts a high volume of pedestrian traffic. A Pick 'n Pay Family store will open in the next few months and we are confident that if it shows the kind of success we are anticipating, we will look to open others as soon as suitable trading space becomes available.
"The CBD is showing real signs of rejuvenation, and we intend playing our part in ensuring that it continues to grow and showcase itself as a world class city."
Welcoming the announcements, Cape Town Partnership CEO Michael Farr said that it was clear that the efforts made to revitalise the central city were beginning to show dividends. "The impact that the Central City Improvement District has had on security and cleansing in particular, taken together with a real commitment from the Cape Town Unicity, are having an impact on investment decisions."
"In Nedcor's case, they have demonstrated that present property opportunities in the CBD allow for re-development of this nature and enable tenants to enjoy state of the art infrastructure along with the benefits of the CBD's wide variety of public facilities and aesthetic environment.
"This development by Nedcor should spur others who can also use the opportunity to conform older, but more aesthetically pleasing buildings in the CBD, to the demands a modern office places on infrastructure."
Councillor Kent Morkel, the City of Cape Town Council's executive committee member responsible for Economic Development, Tourism and Property, said that these announcements were a major fillip to efforts being made by the City of Cape Town and the Cape Town Partnership to assure the long-term future of the Cape Town CBD.
"Together with the Cape Town Partnership, the City of Cape Town Council is fully committed to making the CBD area an environment conducive to investment and one which remains clean and safe for all. Investment attracts more investment, so I see this as a building block in a process that is making Cape Town a globally competitive city in every respect.
"We'd like to thank Nedcor for its investment and welcome Pick 'n Pay to the central city."
Nedcor's new buildings were conceptualised by Nedcor's property division and finished design is by Louis Karol Architects. The building's elevation, while being modern in its design, complements the surrounding architecture and significantly upgrades the visual impact of the foreshore precinct.
Golding Commercial's Bill Grantham, who assisted Nedcor with their acquisition, said that although Nedcor will acquire the completed facility at a significant discount to construction of an entirely new building, the added value of the overall scheme enabled Golding to negotiate a price on the building to be demolished which made it attractive enough for its owner to agree to the sale.
"Interestingly, its value calculated on the basis of Rand-per-bulk-square-metre significantly outstripped its value calculated on the basis of a return-on-income. The sale thus made sense to both Nedcor and the seller. Surrounding property owners and Cape Town in general will benefit enormously from this development and we were delighted to have been a part of it," said Grantham.

Publisher: Cape Business News
Source: Cape Business News
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