Construction of the retail part of a R415-million development began in Khayelitsha yesterday, with Cape Town mayor Nomaindia Mfeketo turning the first sod.

The retail component of the project is to be developed by Futuregrowth Asset Management, part of the FirstRand group and is the first private sector-funded project to be established in Khayelitsha.

It follows about R50-million of public money invested in infrastructure for the project.

The development, part of the presidential urban renewal programme, is a collaboration between Cape Town, Rand Merchant Bank and the people of Khayelitsha.

The retail development will have 17 500m² for letting, a municipal office block, a fuel station and 1 200 houses. Long-term funding commitments of about R300-million will be underwritten by RMB, in addition to R100-million from central government and the city council.

The new development follows infrastructure projects such as a magistrate's court, offices for the social welfare and home affairs departments, a bus and taxi rank, a sports field and a swimming pool, which were completed during the first phase of the improvement of Khayelitsha's business district.

The site for the retail development, next to the Khayelitsha railway station, has been purchased by the Khayelitsha Community Trust from the city.

Mfeketo said the development provided an opportunity for shareholding by the community in some of the commercial projects.

The retail shopping centre will be an open, single-storey strip mall in the form of a high street.

Business Day