Stuart Chait, CEO of Property Partners — the owners of Southern Palace, which owns Melrose Arch — says the timing for the development of available bulk land could not be better.

"Property is about position and timing. Melrose Arch has the best logistical position in Johannesburg for what it is," says Chait.

He says the low interest rate environment and rapidly expanding South African economy augur well for retail, office and residential development plans at the site.

He says companies want to expand because of the strong economy, and newly established companies are looking for space at Melrose Arch.

Retailers, both national and international, are looking to set up new concept stores, he says.

In the residential market, units being developed on the site are selling for R2,65m-R7,5m a unit and Property Partners is keen to see developers now build units priced between R1m and R2,5m.

Property Partners purchased Melrose Arch for R1,27bn in December last year, and said last month that developers were queuing up to get a slice of the action at the node as Property Partners prepared to roll out new development plans.

Chait says all the guarantees have been put up for the acquisition and only Competition Commission approval is still required to take transfer of the property.

There is about 20000m² to 30000m² of residential bulk ready to sell to a developer, and Property Partners is looking to build a 25000m² retail centre.

About 190000m² has been zoned for offices.

Chait says Property Partners will sign agreements with prospective developers only after the development launch on April 5, where the "methodology" behind the Melrose Arch development will be revealed.

The group plans to expand the mixed node’s "super-basement" across the entire site and build all new developments on top of this.

Meanwhile, Pam Golding Properties says it has achieved prelaunch sales of about R100m in a residential component of Melrose Arch.

Ronald Ennik, chief operating officer of the real estate group and MD of its Gauteng division, says that the 47 units in the residential node range in price from R2m to more than R6m. They have been bought by both local and overseas investors.