SIMPIWE PILISO

OWNERS of Joburg’s most expensive flats in Michelangelo Towers in Sandton’s Nelson Mandela Square are about to lose their bragging rights.

They include Sean Summers, former Pick n Pay chief executive; Tim Burrell, an industrial property lawyer; and Louisa Mojela, chief executive of Women Investment Portfolio Holdings.

The faux-Italian-styled Michelangelo Towers — which boasts more than 180 flats, eight penthouses and two ultra-luxury “king suites” — has held the title of Africa’s most prestigious residential development since being built in 2005, when a 544m² penthouse sold for R23.3-million.

Now banking group Nedbank wants the crown for its latest project, La Residence. The price to own one of its flats — R40000/m² — is believed to be a new record for sectional-title property in Joburg.

Price tags for the apartments in La Residence, above the banking group’s head office on the corner of Rivonia and Maude streets in Sandton, range from R3-million for a one-bedroom unit to more than R25-million for each one of the six penthouses.

Ken Reynolds, Nedbank Corporate Property Finance’s national property finance specialist, said: “The inquiries and demand (for the flats) have been phenomenal . About 75% have been reserved and are being converted into sales.”

The 152 flats are part of a R1.6 billion expansion of Nedbank’s head office, which also includes the construction of a mixed-use development. Apart from the 18-floor block of flats, the 60000m² development will also feature seven parking levels and seven floors of office and retail space, which will include a health centre, a restaurant and cigar bar.

Reynolds said there would be a transition level splitting the office and residential sections.

“Access to the two portions of the building will be separate and each will operate independently,” he said. The six penthouses will range from 388m² to 739m², while the other flats will be between 114m² and 214m².

Reynolds said the flats would boast state-of-the art security, including a face-recognition security system, closed-circuit monitored cameras, an advanced network of lifts allowing for direct access to each flat, and 24-hour security officers. Owners will also have access to a butler and concierge service.

Reynolds said the development would provide much-needed office space for Nedbank.

“It’s estimated that we will need an additional 26000m² by the end of 2009. We are currently occupying 19000m² of rental office space in Sandton,” he said.

Reynolds said that with new companies moving into Sandton and others expanding their offices, an estimated 400000m² of office space could be built by developers in the next 24 to 36 months.

But to alleviate demand on the stretched electricity grid, Reynolds said, the bulk of the power for the construction of the Nedbank development would be supplied by generators.

“There are a number of initiatives under way to minimise power requirements upon completion of the development,” he said.

Construction is expected to start next month, with the residential section to be completed in 2010.

Source: Sunday Times