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Nedbank Corporate Property Finance provides over R1 billion for Melrose Arch Piazza scheme

Posted On Tuesday, 14 August 2007 02:00 Published by
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In its largest property development finance deal to date, Nedbank Corporate Property Finance has provided Melrose Arch Development Company with in excess of R1 billion for the development of the Melrose Arch Piazza Scheme

The Melrose Arch Piazza – comprising Melrose Arch Shopping and Melrose Arch Offices on the Piazza - combines street-level shopping and upper-level offices in the successful Melrose Arch mixed-use precinct in northern Johannesburg.

Melrose Arch is owned by Southern Palace, a joint venture between Amdec Property Development and Property Partners. Amdec is also the appointed development manager for Melrose Arch, driving the roll-out of all development projects in this prestigious mixed-use precinct.

“Nedbank Corporate Property Finance has strong, established relationships with both Southern Palace and Amdec which have led seamlessly to our financing one of the largest development loans in South African property history,” says Tim Irvine of Nedbank Corporate Property Finance’s Cape Town team, which negotiated the deal.

While the deal was secured through the existing Cape Town-based relationships, it was cemented with the support of the Johannesburg office’s knowledge of Melrose Arch. Nedbank Corporate Property Finance is a national business, which provides a full spectrum of property finance competencies in major regions, positioning it to back the right deals.

“We believe in the Melrose Arch mixed-use precinct and through harnessing different skills across different regions we have developed an in-depth understanding of the future plans for this exceptional development,” says Irvine.

In this case, Irvine explains, Nedbank Corporate Property Finance bought-in to the concept of the iconic landmark and drawcard that Melrose Arch has established itself as and made a strategic decision not to over-penalise the deal in terms of high pre-lets and other restrictive conditions.

“Melrose Arch Development Company is proud to be associated with Nedbank Corporate Property Finance. We are confident that as Melrose Arch, and the property portfolio of both Property Partners and Amdec, continues to grow, so will our relationship with this dynamic and innovative team,” says director of Melrose Arch Development Company, Nicholas Stopforth.

The Melrose Arch Piazza Scheme will comprise of seven separate highly individualised buildings. Melrose Arch Shopping will provide 28,000m2 of retail opportunity whilst Melrose Arch Offices on the Piazza will consist of 31,000m2 of lettable office space.

Earthworks began early this year with 250,000m3 of organic material already removed and relocated to the neighbouring James and Ethel Gray Park as part of a R5-million park upgrade sponsored by Melrose Arch. Completion dates for the Piazza scheme are scheduled for Easter 2009.

Last modified on Monday, 12 October 2015 17:38
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