A multi-billion-rand mixed-use development is in the pipeline in the area around the 50ha Paardevlei in Somerset West.

Heartland Properties, a wholly owned subsidiary of AECI responsible for the continuing redevelopment of AECI land between Somerset West and Strand, says it hopes within the next year to present proposals for a mixed-use development surrounding Paardevlei and a historical precinct which includes Sir Herbert Baker-designed and other buildings dating from 1901.

"The scale of the total development could be likened to a new town," says Heartland Properties spokesman Wendy Viola.

Viola says the rest of the AECI land site still to be developed amounts to about 730ha.

"We won't be releasing all of the land in the next year. Applications for development rights will be phased in over a period of time, as will the release to the market," she says.

Viola says Heartland plans to create an urban environment with an initial emphasis on offices and residential units and niche retail.

She says the historical buildings are also owned by AECI. "These buildings are being used as offices and will be integrated into the new development."

Heartland believes there will be demand for the new apartments as what they are offering is "unique" as a "whole new environment" will be created.

She says Somerset West has always been seen as a dormitory town, with people commuting to Cape Town and other areas.

"There have never really been any work opportunities in Somerset West but this is changing and becoming more commercial with a definite economic base developing in Somerset West."

Somerset Mall, jointly owned by listed property unit trust Sycom and AECI Pension Fund, was the first development on the 1,000ha AECI landholding between Somerset West and Strand.

"It has been enormously successful and other retail facilities have developed around the mall as well as an office node," says Viola.

More and more smaller business owners are relocating their premises to Somerset West because of problems with traffic congestion in Cape Town.

Viola says that in five years about 250ha of the total AECI landholding - equivalent in size to Cape Town's City Bowl - has been successfully subdivided and sold for residential, retail, commercial and light industrial use to investors, owner-occupiers and developers.

Viola says a R24m programme to upgrade roads in and around The Triangle, a commercial area surrounding Somerset Mall, is now under way.

This will include a new intersection giving access to the eastern part of the main AECI property. "This intersection will help facilitate future development of the remainder of the property."

A major design implication of the planned development is to accommodate a wide range of income groups, she says.

"Emphasis on the proposed mixed-use development will be on retaining the existing green nature on the eastern side of Paardevlei.

"Tighter development with a higher density will be encouraged on the western side to create a more urban and cosmopolitan atmosphere of residential, offices and restaurants."

Business Day

Publisher: Business Day
Source: Inet Bridge