Construction recently started on The Claremont, a R250-million mixed-use development in the heart of the Cape Town suburb, Claremont. The development is set in the suburb's CBD and is already labeled as the catalyst to set the area's urban renewal plans in full motion.

The development, a partnership between the Foodprop Group of Companies and Zwelinzima Property Developers, is one of the most significant BEE equity deals in the Western Cape property market to date. The partnership's success is evident when one considers that over 80% of the units have been sold before construction commenced with a value of approximately R200-million. Foodprop has an 80% equity share in the scheme while Zwelinzima carries a 20% share.

"We launched the apartments in September last year and were amazed that 80 units sold on the first night," says Liyaqat Parker of the Foodprop Group.

"We wanted to develop something that could live beyond us - a development that would be good for the area and right for the time. And although we're definitely not the first development in Main Road to address renewal, we are the first development with a strong residential component that will draw people back to the area to create a vibrant and secure CBD.

"The sales on launch night were an early indication that a strong need exists for quality, value for money residential units in this area.

We're very pleased that we're almost sold out even before the first brick is laid and are confident that the remaining apartments won't stay on the market for long."

Parker feels strongly that The Claremont will go a long way to upgrade one of Cape Town's oldest suburbs: "We firmly believe in the rejuvenation of Claremont and this development will have a knock-on effect for the whole area."

"Claremont has seen a dramatic turnaround in the last few months alone,"

says Clive Lurie, of Zwelinzima Property Developers. "The development of The Claremont on this site will be the main catalyst in rejuvenating the Claremont CBD and will pull the Claremont Improvement District Company's urban renewal plans together. When one considers the CIDC's proposed bypass and pedestrianisation plans for the area, then it is easy to see why The Claremont is set to be one of the most wanted addresses in Claremont."

Commenting on the developers' choice to opt for a mixed-use development, Lurie explains that by combining retail and residential, tenants are generally happier because of the proximity of amenities, and that investors get better returns.

According to Anthony Davies, executive manager of the Claremont Improvement District Company, The Claremont is of massive significance to the future of Claremont. "We are 100% behind this development. It will change the face and the demographics of this urban area which, in recent years, has been all but destroyed. It also complements the planned bypass and Public Transport Interchange, which have been the catalyst to Claremont's renewal. The interchange consists of a new taxi rank and bus terminal and the construction of a new bypass road, Claremont Boulevard, will relieve traffic congestion and will turn the area into a pedestrian friendly environment.

"The Claremont development is the keynote structure driving the area's rejuvenation and will bring people back to live in the heart of Claremont's CBD. We have a win-win situation in the suburb and people working and living in and around Claremont or traveling through it can look forward to some very exciting changes over the coming year."

Dudley Annenberg of Annenberg Real Estate says sales reports show more owner-occupiers than investors with the majority of tenants being a cosmopolitan blend of young professionals. He says the quick sales can be attributed to a strong need within the market, even amid the initial skepticism from local residents. "Once demolition started on 4 April, our phones haven't stopped ringing. Claremont residents are seeing that the development is progressing, and they are starting to buy in to the reality of Claremont's rejuvenation. In my view The Claremont has succeeded where others have failed."

Concessions for the retail component of The Claremont are expected to be announced at the start of next year. Parker foresees that concessions will be awarded to speciality shops that will complement the modern living lifestyle of both residents and shoppers attracted to the stores.

Peter Leppan of Grinaker-LTA Building Cape said, "We are delighted to be involved in the first major building project which is going to kick start the redevelopment of the Claremont Lower Main Road Precinct. The contract is due to be completed by the end of 2006 and will have a positive effect on the local construction sector which includes sub-contractors, suppliers and construction crews. We anticipate that the project will peak at around 400 personnel on site and the overall project will benefit somewhere in the order of 800 people."

BACKGROUND

Foodprop Group of Companies:

The Foodprop Group of Companies is an associate of the Foodworld Group of Companies. Foodworld is a well-established chain of retail supermarkets which was started by the Parker family 19 years ago. The supermarket chain was sold to Shoprite Checkers on 8th April 2005.

Foodprop's portfolio of assets includes owning and managing shopping centres across the Cape Peninsula. Its focus is to further develop their property portfolio in the Western Cape. The Claremont is the group's first residential development. At R250 million, it is also the group's first development of this magnitude.

Zwelinzima Property Developers:

The Claremont is being developed in association with Zwelinzima Property Developers which is a property development company pioneered by Fezekile Mahlati and Tumelo Motsisi and joined on the board in 2001 by Clive Lurie.

The company's vision is to be the largest black controlled property development and asset managers in the Western Cape and ultimately in South Africa. Zwelinzima will achieve this objective by partnering with professionals who are committed to promoting and mentoring emerging professionals in partnership that will enable broader participation now and on future projects. Other properties developed by Zwelinzima include Canal Quays at Cape Town's Roggebaai Canal in the Foreshore, DTI House in Pretoria's Mandela Street and Madiba Bay Leisure Park in Port Elizabeth.

About The Claremont:

The four towers of The Claremont will be set on a raised, landscaped piazza with swimming pool and entertainment areas in a secure environment. The architects have designed the towers so that each wing only has two apartments per lift lobby, maximizing privacy for tenants.

There will be two levels of basement parking and on the periphery of the development will be retail areas housing various lifestyle shops and stores.

Apartment prices range from about R500 000 for one bedroom and a secure parking bay, while top end prices are just over R1.7-million for a three-bedroom apartment with two bathrooms, or a two-bedroom, two-bathroom option. The development is expected to create in the region of 800 - 1000 direct jobs during the construction phase and numerous indirect jobs.

ENDS

ISSUED BY: The Phoenix Partnership

ON BEHALF OF: The Claremont Sectional Title Apartments

MORE INFORMATION: Wendy Masters, The Phoenix Partnership

(021) 422 2541 or 083 501 5001

or

Dominique Coetzee, The Phoenix Partnership

(021) 422 2541 or 082 802 8184