“Potential investors are standing in line to become part of the revitalisation of the Central City,” said Andrew Boraine, Chief Executive of the Cape Town Partnership, at the Partnership’s 8th Annual General Meeting, held at the new Mandela Rhodes Place Conference venue today.
 
According to Boraine, the key development trends in the past year were:

• Major improvement in the Central City commercial property market, with A-grade vacancies down to under 4%. The latest Rode Report, released in October 2007, states that: “despite the much talked-about movement of office rentals in central business districts, most centres showed nominal rentals moving sideways, with real rentals declining. The only exception was the Cape Town CBD, which jumped by 20% year-on-year during the second quarter of 2007”.

• The emergence of the Foreshore precinct as a major financial, media, convention and business services centre, signifying movement towards the final completion of the Foreshore Reclamation project which starting over 70 years ago.

• Continued growth of creative and cultural industries such as advertising, craft, design, film, media, publishing, performing and visual arts. There are currently more than 800 of these creative industries and organisations in the Central City alone.

• A shift from residential conversions to office-space development, although a large number of mixed-use developments with a residential component continue. Ian Slot, the managing director of Seeff City Bowl, Atlantic Seaboard and the CBD, said the CBD will continue to deliver a capital growth of 10% per year. “We have seen a consistent return on investments in excess of that – and we expect this to continue.” (Source: Weekend Argus, October 13, 2007)

• A strong trend towards new private sector developments in Lower Gardens, Green Point and Woodstock/Salt River precincts.

• The growth of new ground floor retail, in particular, home ware, health shops, fashion and design – signifying a shift for the first time in over twenty years. Important retailers are now opting for Central City high street retail as opposed to the customary decentralised shopping malls.

• The growth of restaurants and coffee shops. The CCID has just released its 2008 eating guide – Taste the City – where more than 200 restaurants, coffee shops and other similar establishments in the Central City are listed.

• Upgrading of key public spaces such as Pier Place (on the Foreshore) and St Andrew’s Square (Green Point) by the City of Cape Town. Good progress is being made on the planned upgrading of the Grand Parade and Greenmarket Square in time for 2010.

• Hosting of bigger and better events in the City Centre, such as the Tickertape Parade for the Springboks, the 2006 Homeless World Cup, the Cape Town Marathon, the Switching on of the Festive Season Lights, the Adderley Street Night Market, the Community Chest Twilight Run, the Cape Argus Pick ‘n Pay Cycle Tour, the Design Indaba and the Cape Town International Jazz Festival to name but a few.

Boraine said between R28 to 30 billion worth of new private and public sector investments are being planned for the next three to five years in the Central City.

He said some of the specific development highlights of the past year include:
 
• The launch of Mandela Rhodes Place in November 2006 (a development comprising of seven buildings being renovated into a mixed use property complex).

• The launch of the Icon Building on the Foreshore in March 2007.

• The sale of the V&A Waterfront to an international consortium based in the UK and Dubai, as well as the planned expansion of the Waterfront over the next 3-5 years.

• Commencement of planning for the R2,2 billion Strand-on-Adderley mixed use development.

• Planning process for the revitalisation of the Cape Town Station, including upgrades in time for 2010, as well as good progress towards an Inner City Public Transport Plan.

Boraine said a strong performer of the past year has been the various components of the Cape Town Central City Visitor Economy – being a combination of spaces and places for events and festivals, facilities for conventions, meetings and exhibitions, the hospitality industry, the experience economy and branding and marketing Cape Town. According to him, over 21 50 (47%) out of 45 750 beds in the greater Cape Town region are located in and around the Central City.

“Cape Town has undoubtedly the safest central city in South Africa. Hence we see the rapid development of new hotels, such as The Adderley, Protea North Wharf, Urban Chic, Daddy Longlegs, Cape Diamond, Protea Extreme, Holiday Inn Express, Taj Palace, 15 on Orange, Wale Street site and Oscar Pearse, to name but a few. All located in the Central City where people nowadays feel safe to walk the streets during the day and at night time.
 
“At last, the Central City is becoming what we have been striving for: a place where the people of Cape Town meet, in a unique and pleasant urban environment, to conduct business, welcome visitors and in true tradition of the Mother City, watch the world go by over a good cup of coffee”, said Boraine.