New investments top R5,8bn in Cape Town CBD

new investments top r5,8bn in cape town cbd

new investments in the cape town's central business district (cbd) have reached r5,8-billion over the past four years, with local investors leading the way.

this is the cumulative value of projects completed, planned or under way since the cape town partnership started in 1999.

the partnership, together with other agents, such as the city council and wesgro, has also attracted over r3-billion in new investments for the first six months of this year, tripling the annual target of r1-billion.

the r3-billion investments that accumulated from january to june are made up of new leases amounting to r84-million, new development of r1,9-billion, new purchases of r192-million and building upgrades and renewals amounting to r889-million.

over the past five years, starting before the formation of the central city improvement district and the partnership, cumulative figures for investments in the city centre stand at an impressive r11,5-billion.

but at least r5,7-billion of the r11,5-billion includes developments on the waterfront, and not exclusively the cbd. the remaining r5,8-billion reflects improvements and investments in the cbd alone.

andrew boraine, cape town partnership chief executive officer, said 88 percent of these investments were from local businesses.

"this is exceptionally important because if locals don't invest in the economy, how can we expect overseas investors to do it? so credit also has to go to private investors who invest in new business and conversions - converting old office blocks into residential spaces," boraine said.

he said the partnership had been working with a range of agencies to achieve the targets for the central city.

"it is not just the work of the partnership. the city council has been a key roleplayer and wesgro promotes investment that comes into the central city. brokers, property dealers and the cape chamber of commerce are also important in bringing business into the cbd.

"it reflects a team effort. the partnership's role is to facilitate these processes and do a lot of marketing with investors."

boraine said there had been a positive turnaround of capital flight since 1999, with investors bringing money into the city centre instead of investing offshore.

"we have gone from capital flight to capital investment coming into the city centre. people have shown confidence in the cbd because there is good money to be made in the central city."

after four years of hard work to prevent capital flight, the partnership now spends less time convincing people not to leave, as the city is more attractive to investors.

boraine said the partnership also spent a great deal of time trying to stop corporate and retail relocation from the cbd to other areas.

another major trend was to advise property owners and developers about conversions and upgrades of buildings to accommodate residents.

according to the partnership, old mutual wants to develop an art deco building in darling street, adding to the upgrade of the eastern part of the city.

in the next two to three years, at least 15 other residential projects are expected to create a residential community of about 2 000 people in the city centre.