ApexHi Properties Limited has sold the mothballed office components of five of its central Johannesburg properties, Castle Mansions, Biccard House, 66 Smal Street, African City, Kelhof and one of its Durban properties, Berea Centre, for conversion into residential space to meet the growing need for residential space in the inner cities.

ApexHi director Deon Feinblum says the transactions are in line with ApexHi's stated intention to convert unlettable office space in the Johannesburg and Durban CBDs into residential apartments.

Feinblum says ApexHi retains the retail component of the properties where applicable. “Converting the office space into residential apartments will result in increased sales for the retail component of the buildings,” he says.

Six-storey Biccard House in Braamfontein and 15-storey 66 Smal Street in Johannesburg inner city were sold for conversion to Aengus Lifestyle Properties (ALP), with ApexHi retaining 10% of equity. ALP also purchased mothballed space at African City, Kelhof and the office space above Berea Centre in Durban.

Retaining a stake in the buildings is part of ApexHi’s commitment to the rejuvenation of the inner city. Feinblum says international trends show that the composition of CBDs around the world is changing. “Instead of being purely retail and commercial hubs, CBDs are now becoming mixed-use centres where commercial, office and residential inhabit the same space,” he says.

ALP MD, Richard Rubin, concurs saying there is an insatiable demand for residential space in the Johannesburg inner city. “Biccard House was let within two hours of going to market, much of it to young professionals looking for a place to stay that is convenient and close to work,” he says.

Biccard House was home to Permanent Bank for many years before being mothballed in December 2003. Renamed Braamfontein Lofts, the building has been converted into 54 studios and one-bedroom apartments. The retail element has been converted from one large outlet to seven smaller outlets, which are fully let by a variety of merchants, from a hair salon and Laundromat, to an eatery and music store.

66 Smal Street is situated in the middle of one of the busiest retail thoroughfares in sub-Saharan Africa, with in excess of 50 000 visitors per day.

Rubin says the developers engineered a full lifestyle component for the building and the R20-million project boasts 150 themed apartments in New York, Paris, Tokyo or Jozi style. In addition to the spectacular views that begin on the third floor, the Smal Street apartments are loft-like in style, hence the name Lofts at 66, with exposed conduiting and screeded floors. A laundromat, restaurant and audio visual room in the building service tenants.

The mothballed space at African City, renamed Tribeca Lofts by ALP, is being converted to 141 studio apartments. In another R45-million project, the old Kelhof building, situated in the fashion district, will be converted to Fashion Lofts and is scheduled for completion in 2007.