The R100m Colosseum Luxury Suites hotel, part of the R300m Colosseum mixed-use development under construction on a prime gateway site at Century City, has attracted the interest of an unexpected large number of South African investors.

Brian Singer of the Singer Group, developers of the luxury hotel, said the pre-launch response from local buyers had been "phenomenal" with a total of 42 of the 70 suites having been snapped up in two weeks.

"We had planned to launch the development in April in London followed by Dublin with a pre-launch being staged in at three South African centres namely  Johannesburg, Pretoria and Cape Town ahead of this.

"As happened with our other similar developments we under-estimated the demands of the South African market. In fact we have been so blown away with the positive response from the domestic market that we have cancelled our planned overseas trip confident that local investors will take up the remaining suites and penthouses," he said.

Singer said most buyers had been drawn to the development because it provided an ideal property investment for those wanting exposure to the Cape Town property market, particularly in a completely managed environment and with a guaranteed rental return for the first two years and an escalating projected return thereafter. 

He said investors who purchased a suite or penthouse were entitled to spend four weeks holiday at the Colosseum Luxury Suites, or at one of 3600 RCI affiliated resorts in 94 Countries which made it an ideal investment for out-of-town investors.

"Most of our buyers seemed to be very excited at the prospect of having free holidays in a luxurious Cape Town hotel - for the rest of their lives!"

He said from the response they  received it was also evident that  South African investors were keen to invest in the Cape Town property market, and at the same time gain some exposure to the tourism industry, particularly in the run up the 2010 Soccer world Cup. 

The Colosseum Luxury Suites is the second hotel to be developed by the Singer Group at Century City and follows the huge success of the Island Club Hotel which opened six months ago and which is already enjoying occupancies in excess of 75%. .

The hotel, which has been designed to capture the upper-end of the hotel market in Century City concentrating predominantly on the business traveller, will comprise the top two floors of the Colosseum development as well as a portion of the ground and mezzanine floors which will house the hotel’s reception, concierge service, a restaurant and cocktail bar as well as state-of-the-art conference and meeting rooms.

Two private lifts will take hotel guests up to the suites and penthouses on the fourth and fifth floors.
 
Ranging in size from 40 square metres to 65 square metres, suites are available for purchase on a sectional title basis at between R950 000 and R1 565 000 while penthouse suites, which vary in size from 88 square metres to 174 square metres, are available for between R2 295 000 and R5 055 000. No transfer duty is payable.

Singer said the rental income will be guaranteed for the first two years - expected to be 2007 & 2008 - at a minimum of 5% of the purchase price.
 
"And from year three (2009) onwards, the rental income will increase based on the hotel's performance. In addition, the Singer Group will pay all property levies for the first two years," he said.

The Singer Group, which owns several travel companies, hotels and restaurants, has appointed Protea Hotels to operate the Colosseum Luxury Suites

For further information, telephone Helen on (021) 424 2288 or log onto www.colosseum.co.za