Claremont is about to assert itself as Cape Town's most important decentralised property node as developers rush to produce more than R1bn worth of new buildings in the next 18 months.

The new developments include more than 1 000 new residential units, a boulevard and the pedestrian dominance of Main Road. And this is expected to end the decades-long gulf between the southern suburb's posh west and down-market east sides.

Old Mutual's Cavendish Square will probably be expanded through The Link centre to connect to a transformed Main Road and by converting the former Woolworths building to parking (FM Focus January 17 2003).

First to launch on this new wave was Property Partners, with the conversion of the former Norwich headquarters on Protea Road at the north end of Claremont into a R320m, 200-unit residential development called Intaba. It is the most expensive of the new projects and is nearly sold out.

RPP Developments also kept ahead of the market with Seven Miles South, a conversion of the old Absa Bank building into a R75m, 100-unit, "affordable" residential project. This, too is nearly sold out.

But the rest must still find buyers.

Last week, developer Food World Properties unveiled The Claremont, a R290m, 270-unit residential development in three towers on the original Shoprite site between Draper and Stegmann streets.

Next door, developer Chris Drummond is converting the offices at Stadium on Main to 160 units of student accommodation.

One block south of Seven Miles South, RMB Properties is redeveloping the First National Bank building into a new commercial centre, including a BMW showroom.

And south of that, Corevest is converting the Claremont library into a mixed commercial and residential development. It will still include a library.

Listed property loan stock company Paraprop is expected to announce the conversion of the Pick 'n Pay national head office into a combined office and residential development.

And next door to Intaba, insurer Sanlam is believed to have sold its office building, Sanclare, to a consortium including developers Charles Arton, Raymond Hoffman and Vaughn Bray.

"That's well over R1bn in development cost," says Drummond, who recently resigned as chairman of the Claremont Improvement District Co (CIDC) to concentrate on his own developments.

"Huge inward investment is being attracted to the area and the CIDC, together with Cape Town city council, has provided the template for the new investment attitude."

Their plans include the new public transport interchange, which is being built, and a long-planned road bypass named Claremont Boulevard. It will divert traffic and allow Main Road to be a mainly pedestrian link bridging the two parts of the suburb and boosting values on the east side.

Claremont's large office oversupply - nearly 25% just two months ago - has been wiped out.

And Drummond says there is a flurry of inquires for space in all the buildings being converted. Developers could soon be rushing to build new offices as well.

Financial Mail