Former Colliers MD is banking on mixed development.

Posted On Wednesday, 13 November 2002 10:01 Published by
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Cape project combines commercial, residential, retail and leisure facilities.
Former Colliers RMS MD Jaco Odendaal is venturing into a multimillion-rand mixed use development, CapeGate, to be built on a 60ha site in Brackenfell, Cape Town.

The development draws on the growing trend of mixing commercial, retail, residential and leisure activities in a single space.

It embraces the 'new urbanism' concept seen in several new developments, including Century City in Cape Town and Melrose Arch in Johannesburg. In partnership with Ernst Hartwig, Odendaal has taken a cautious approach to the development, which will deliver the mixed-use project in phases that are driven by demand.

His caution suggests that developers are learning the lessons delivered by recently completed projects that have delivered massive lettable areas at once, and have taken severe financial strain as a result of having parts stand empty.

The CapeGate site, on Okavango Road, comes with rights for a 280000m² lettable development.

The launch phase, which is scheduled to start trading in June next year, will deliver an 8500m² lifestyle centre anchored by Spar. Odendaal says he and his partner are negotiating to bring in Mica Garden Centres, Fruit & Veg City, and eateries Dros, McDonald's and KFC.

The R50m first phase will be funded jointly by CapeGate Properties and Cape of Good Hope Bank.

The developers plan an 18month break before launching the second phase a R300m regional shopping centre with a gross lettable area of 33000m² to 36000m².

Odendaal says Woolworths, Checkers, Pick 'n Pay, Mr Price, Clicks and Truworths are all committed to CapeGate.

Developers say the centre is expected to achieve turnover of about R360m a year once it is fully operational. They say this forecast turnover represents only 1% of total consumer spending, which has been estimated at R32bn.

'As spending is growing by at least 3% a year there is every chance the centre will achieve its forecast turnover,' says Odendaal. He expects CapeGate to draw shoppers from Durbanville, Kraaifontein, Brackenfell and Kuilsriver.

'We have researched it thoroughly through Dirk Prinsloo of Urban Studies.' The area is a fast growing one, with 2500 new homes built in the past three years, and the population in areas around the development growing by 1200 households a year, says Odendaal. The research shows a shift from middle- to upper-income households.

Odendaal says the selling out of nearby mixed-use Tyger Falls shows how popular mixed developments are becoming.

Business Day


Publisher: Business Day
Source: Business Day

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