Real Estate Investor Magazine South Africa July 2015 | Page 49

ACQUIRING

Investment Opportunities In

New Hotel Apartments
R1-Billion Luxury Development Takes
Downtown Cape Town Up-market

C

ape Town’s lower Central Business District
(CBD) is set for a change with the development
of an R1-billion five-star hotel and apartment
block combo.
Construction and remodeling of the former
Safmarine building, will be complete by the end of
next year, and will see it transformed into the luxurious
Radisson Blu Hotel and Residence with 11 floors of
executive apartments filling the top half of the building.
The lower half of the building will become one of the
Carlson Rezidor Hotel Group’s city developments.
The existing architecture made it perfect for
conversion from office space to apartments. The project
was established via a partnership between veteran
developer John Rabie, and property owner, Shaun Rai.
According to the latest statistics from the Central
City Improvement District, residential property worth
R296 million was sold in the CBD in 2014, with
average prices rising from R1.3 to R1.55 million from
the year before. There has been a steady increase in the
City’s population figures, from 5000 in 2011 to 6000
last year. 191 Residential properties were sold last year,
up from 132 in 2012.
The Hotel and Residence will provide a unique
opportunity in the market, with owners of the 166
executive apartments able to add their properties to the
hotel rental pool, and also receive a tax incentive, as
their properties are located in an Urban Development
Zone (UDZ). This provides a tax deduction equal to
30% of the value of the apartment over five years.

www.reimag.co.za

The executive apartments, which are being developed
in partnership with Rai, represent the pinnacle for
Signatura, a private label development company.
Owners of the 166 executive apartments will have
access to the full range of amenities and services offered
by the hotel.
“The apartments will be particularly attractive
to international executives and local businesspeople
who want to stay in Cape Town and have the V&A
Waterfront, as well as the Cape Town International
Convention centre on their doorstep,” Rabie comments.
The building’s high-speed fibre connectivity will
make business easier when working from home.
It will also have 24-hour security to ensure the
safety of all residents, as well as private parking. All
apartments have dedicated parking bays with one bay
for one-beds and two bays for two-beds – a big plus in
a city where parking comes at a premium.
“This will undoubtedly provide a fantastic boos