Real Estate Investor Magazine South Africa August 2013 | Page 18
COVER STORY
between Durban and Johannesburg, such
as the development of Cato Ridge on the
eastern coast as a dry port; the construction
of a dug out at the old Durban airport site;
the extension of commuter rail network to
reach Pietermaritzburg; the development of
Harrismith as a logistics hub and the setting up
of several logistics hubs throughout Gauteng.
In addition to being a renowned tourism
destination, Cape Town’s reputation as a global
business destination is being boosted by the new
IRT (Integrated Rapid Transit), a major expansion
of the highly successful Cape Town International
Convention Centre, a host of urban regeneration
projects as well as the city’s infrastructural
investment in new fibre optic cabling which will
make Cape Town a top technologically attractive
base for new business ventures and will encourage
further investment in the city’s CBD.
In the Eastern Cape, Coega is attracting business
to the region. Outlying towns in the Eastern Cape
such as Sterkspruit, and Mthatha and Tsolo in
what was formerly known as the Transkei, are
experiencing an increased demand for retail space,
reports Amanda De Lange, portfolio manager
of JHI Properties, based in Port Elizabeth. “It
appears that national retailers, who may perhaps
have saturated the market in major centres, are
now looking at outlying areas with potential,” says
De Lange.
“All this provides many value creation
opportunities for investors in the property sector
but, where long-term profit and value remain the
motive, it is imperative for us to ensure that our
financial models are accurate,” comments Smith.
“Also remember that private sector participation
in nodal development is the significant factor
that eventuates its success. But while public sector
involvement is necessary to facilitate harmonious
township development, the private sector is the
source of both capital and skill, the two injections
which real estate craves.”
This trend is also being fuelled by the
rejuvenation of decaying suburbs and the creation
of vibrant, thriving nodes within city areas.
“Obvious success stories include Maboneng
Precinct and Melrose Arch in Johannesburg,
Century City in Cape Town, Gateway’s Newtown
centre in uMhlanga, KwaZulu-Natal and St
Georges Mall in Cape Town’s CBD,” comments
David Reid, investment sales broker for JHI
Properties in Gauteng. He adds that these new
16
August 2013 SA Real Estate Investor
hotspots or precincts may grow from natural town
planning parameters such as Rosebank, Newtown
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