Real Estate Investor Magazine South Africa Dec/January 2020 | Page 18

Welcome to Newtown, the
cultural precinct in the Heart
of the City and be amazed
Newtown is a melting pot of cultural expressions. From
cuisine to music and art, the precinct offers a cultural
explosion that transports visitors across time and space.
The Urban Development Zone (UDZ) tax incentive has
transformed the precinct into a hive of activity, with
many commercial enterprises setting up shop here.
These include the world-renowned Mary Fitzgerald
Square where exciting public performances and
gatherings take place. Even Tata Nelson Mandela once
spoke at the Square. Among spectacular draw cards of
the square are Diwali Festival, the Chinese New Year,
the SA fashion Week, the Joburg Arts Alive and multi-
cultural jazz sessions which occur under the shadow of
the iconic Nelson Mandela Bridge.
The UDZ tax incentive has unlocked developments which have reinforced Newtown as a prime cultural
destination in the City. These include the Turbine Square which houses the headquarters of Anglo-Gold
Ashanti mining house and the Dynamic Forum Conference Centre that has lit up space for young vibrant
business aspirants, wedding and other celebrations in the heart of the City.
Other property developments are the Zurich building offices, the Newtown Junction shopping facilities
and a hotel. All these developments have enhanced Newtown’s cultural and social characteristics in
support of earlier landmarks such as the SAB World of Beer, the Museum Africa. Sci-Bono and the
Market Theatre. The construction of some 6 000 affordable accommodation units at the confluence of
Carr Street and Nelson Mandela Bridge and within close proximity to Wits University eastern campus has
meant that the area bustles with activity at all times of the day.
Restore, Renovate and Recover
There are significant financial benefits for investors as part of the City’s UDZ tax incentive scheme.
Property size does not matter because investors are eligible for major tax deductions if investments are
within the UDZ boundaries. To qualify, an investor has to restore, refurbish or add onto an income-
generating property within the UDZ, or demolish old buildings and build new structures in their place, or
purchase new or refurbished buildings or units.
An investor will qualify for a 100% tax deduction over several years, depending on whether they have
refurbished existing structures or constructed new buildings. The incentive enables property owners
to increase the value of their properties and improve their earning capacity within the UDZ. Corporate
or small investors who own buildings that have degenerated can now restore and renovate them, and
recover the money spent. No matter what other sources you may get your income from, one can deduct
from their taxable amounts any money spent on building or refurbishing within the UDZ.
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DECEMBER/JANUARY 2020 SA Real Estate Investor Magazine