Long-awaited: R70m redevelopment of former Naspers building.

Posted On Monday, 14 October 2002 10:01 Published by
Rate this item
(0 votes)
LONG awaited deal for the redevelopment of the former Naspers Building in Buitengracht Street has been signed - and a high proportion of both the consulting and the contracting work will be handled by empowerment groups...
A LONG awaited deal for the redevelopment of the former Naspers Building in Buitengracht Street has been signed - and a high proportion of both the consulting and the contracting work will be handled by empowerment groups, Spearhead Property Holdings announced this week.
 
Spearhead acquired the 19 000m2 complex from Brait Merchant Bank, which had owned it for three years after purchasing it from Naspers, when they relocated to new high-tech premises at Montague Gardens.
 
'We ourselves had no definite ideas about the complex - but we liked its strategic position and we realised that the very solid large structure with its big floor plates could be put to a wide variety of uses,' said Spearhead CEO Mike Flax.
 
Since then, Spearhead and Swish Property Developers, with the help of their empowerment consultants and joint venture partners, tau Pride, have managed to put together a consortium with a strong empowerment component and this consortium has signed a 10-year lease agreement with the National Prosecuting Authority, through the Public Works Department. It is known that over 300 people will be housed in this state-of-the-art complex - which, said Flax, will go a long way to revitalising this part of Cape Town's CBD.
 
Flax added that the refurbishment of the building could cost over R70 million and that a large percentage of this sum will go on the all-important security equipment, computer services protection, surveillance cameras and other fixtures.
 
The dhk Architects design, he said, is clean, modern and has an impressive understated elegance which is bound to make it the landmark building in the area.
 
The complex will have 10 000m2 of office space on four floors and parking on three floors for over 200 vehicles. The floor plates, said Flax, are large - up to 3 500m2 in size. To get sufficient light into the interior the architects have allowed for two large light wells to reach down to the first office floor.
 
There will also be ample storage and holding space, executive suites, overnight accommodation, a canteen and a gymnasium.
 
The main contractors are Stabilid. Their proposal, said Flax, spelt out clearly how they would ensure that about half the R70 million budget would be spent on work by BEE (black economic empowerment) operators.
 
The first phase of the fast-track contract is scheduled for completion in April 2003 and the final completion will take place in June of that year.
 
Flax said that the project will make no contribution to Spearhead's profit line this financial year - but would add profits down the line. An 8% per annum escalation clause will operate.
 
l For further information please contact Mike Flax on 021 425 1000.

Publisher: Weekend Argus
Source: Weekend Argus

Most Popular

Where is the housing market headed in 2021? Dr Andrew Golding comments

Jan 19, 2021
Andrew_Golding_Golding_PropertyGroup
After the worst economic downturn in decades, further dampened by the recent tightening…

Repo rate remains unchanged at 3.5%

Jan 21, 2021
Governor_Lesetja_Kganyago_SARB1
The Monetary Policy Committee has decided to keep the repo rate unchanged at 3.5% per…

2021 - the year of the great reset

Jan 20, 2021
Yael_Geffen_LGSIR_CEO
Although the pandemic hasn’t yet abated as we had all hoped and 2021 looks to be more of…

Accelerate appoints Derick van der Merwe as independent non-executive director

Jan 21, 2021
Derick_van_der_Merwe_Accelerate
JSE-listed Real Estate Investment Trust and 50% owner of Fourways Mall, Accelerate…

Please publish modules in offcanvas position.