Real Estate Investor Magazine South Africa July 2016 | Page 44

DEVELOPMENT

Game Changer
Transforming Cape Town Central

P

roperty investment is one of the biggest
game changers transforming the Cape Town
Central City, and so far this year seven
new developments or redevelopments have been
confirmed, at least three of them with a combined
value of some R270 million.
The CCID has published the annual investment
guide for the past four years, tracking the growth of
various business and leisure sectors, as well as the rise
of geographical nodes in the Central City. In terms
of the former, the legal, creative, financial, healthcare
and publishing sectors had already been identified
over the years as strong contributors to the CBD’s
economy. In terms of the latter, sectors included the
night-time and afterhours economies as well as the
residential sector.
Commenting on the rise of the Foreshore node
since 2012, the report’s editor and co-author, Carola
Koblitz, noted that back in 2012, the CCID’s first
report recorded an investment value into the area of
around R3.2 billion, which at the time included the
development of projects such as Portside, Touchstone
House, 22 Bree, Atlantic Centre, the Civic Centre
update and the CTICC expansion.
“Add to that the fact that the V&A Waterfront’s
most recent developments are expanding towards
the Foreshore, and that there are a number of other

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JULY 2016 SA Real Estate Investor

development happening within the harbour area to
the north of the CTICC, and what we are going to
see is a very exciting reconnection of the CBD to the
sea.”
The Bree Street economy had been identified as
another node to watch, as it moved towards the CBD’s
first true 24-hour economy, with daytime retail and
businesses in operation, popular after-work venues
where people met for drinks before heading home, the
recent rise of restaurants and then late-night bar and
entertainment venues.
Add to this, says Koblitz: “A substantial amount of
residential and hotel accommodation – both existing
as well as under construction – happening on or in
close proximity to this street.
“Over the past year, we’ve recorded shops and
eateries opening along Bree at the rate of one a month,
and now the streets that lie in close proximity to it are
starting to redevelop as well in exciting new ways.”
Overall property values in the CBD have also
increased substantially. Explains Kane: “In 2006, the
City’s official valuation of the downtown sat at just
over R6.1 billion. By the 2014/15 financial year, this
official valuation had risen to close to R24 billion.
“By the end of 2015, when the latest report went
to print, we estimated conservatively that another
R8.2bn would be added to this figure over the next
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