THE Claremont, a R250-million residential development in the heart of Claremont’s CBD started two month ago, could be the catalyst to set Claremont’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.
The Claremont development site is bounded by Draper Street, Main and Stegmann Roads and is the first development of its kind in Claremont’s CBD.
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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 the block between Main Road and the railway line: "We firmly believe in the rejuvenation of Claremont and this development will have a knock-on effect for the whole area. The plans for Claremont Boulevard will mean less congestion on Main Road and pedestrianisation plans from The Claremont onwards, will ensure an even more people-friendly environment."
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Claremont has seen a dramatic turnaround in the last few months alone," says Clive Lurie, of Zwelinzima Property Developers. Some 30% of the office space in the area were empty and rentals were below the R60sq m mark six months ago. A sudden conversion of offices to apartments has brought the previous oversupply to zero."Lurie explains that the site between Draper and Stegmann Roads has always been a prime location, "but has remained somewhat of a Cinderella-site while retail developments shot up around it over the last few years."
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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.
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, 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."
He adds that The Claremont’s strongest selling point is its location in relation to Cavendish Square, UCT, Newlands Stadium and a host of local amenities such as well-established schools and private hospitals.
There are 322 apartments, secure lockup garages and undercover parking bays, as well as 51 lockable store rooms in a double level parking basement.
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We’ve used the available space to the absolute maximum to ensure we take full advantage of the 360 degree views. A traditional floor space just wouldn’t work here. Owners really do get ‘the full Monty’ because the apartments offer unexpectedly more in terms of quality fittings, finishes and amenities than any other middle-income development in the area. This is superb value for money," comments Geoff Davis of Davis & Hinsch Architects.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 says, "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. 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."
Publisher: Cape Business News
Source: Cape Business News
