Old Mutual has agreed to contribute R26,7 million to the funding of a R350 million road upgrade around Atterbury and Garsfontein roads in Menlyn Park, Pretoria.

“The decision follows agreement by the SA National Roads Agency Ltd to build a new off ramp along the Johannesburg/Pretoria N1 in a northerly direction,” says Brent Wiltshire, business development executive at Old Mutual Property Group. 

“Increased traffic congestion as a result of rapid growth in the Menlyn node has prompted the upgrade of the road network. The roads agency has secured R280 million for the upgrade of the N1/Atterbury Road and N1/Garsfontein Road interchanges. The City of Tshwane has secured R29 million in finance.

“Old Mutual has agreed to contribute to the R41 million shortfall based on a formula to be applied to all property owners in the node. “  Wiltshire says that while Old Mutual has agreed to the contribution to protect its investment, there is growing concern among landlords around the country over their contributions to infrastructure even though they are substantial ratepayers. 

“In the case of its investments in Menlyn Park, Old Mutual contributes rates of about R12 million a year.  The issue is that city planners continue to give rights in established areas that further densify the area without providing the budget for infrastructure. Where is the current rates base going and what do we get for our R12 million a year?” 

Old Mutual owns the Menlyn Park Shopping Centre, Menlyn Office Park and Menlyn Retail Park and has applied for rights to expand the shopping centre and office park and to develop a property in Frikkie de Beer Street.  A current R88 million expansion to add another 1 750 covered parking bays at the shopping centre is due for completion in mid-2007.

Wiltshire says the proposed off ramp from the N1 which is conveniently close to the shopping centre and the upgrade of the nodal road network will improve traffic flows around all the Old Mutual properties in Menlyn and thereby improve access. 

“It also improves the viability of future development proposals. “  He says the City of Tshwane has agreed to provide taxi and bus drop-off and loading facilities in  the vicinity of the shopping centre to address concerns of the Lynnwood Residents’ Association.  “The funding assistance is also subject to the widening of the Atterbury access road to the shopping centre.“

Issued for  Old Mutual Property Group

BY  Michael Kerkhoff & Associates

INQUIRIES  Brent Wiltshire 021-530-4500
Mike Kerkhoff 021-424-5280