At a Council meeting on 28 October, approval was given for the City of Cape Town to award a R3 billion tender to establish retail, business, residential, hotel and conference facilities on an 11.5 ha property in the Bellville Velodrome precinct.

The site is located on a portion of Erf 21750, Bellville, in Tyger Valley abutting Carl Cronje Drive. It  includes the Velodrome, athletic stadium and the adjacent public parking area.

The decision to award the tender was taken after a two-stage public tender process that started in September 2007.

The tender was won by Devmet Property Developments, a consortium of Devmark Property Group (Pty) Limited and Mettle Property Group (Pty) Limited, through a competitive bidding process that lasted more than two years. Mettle Property Group is 49% owned by Metropolitan Capital, an associated company of the Metropolitan Group, and is a level eight contributor in terms of Broad Based Black Economic Empowerment (BBBEE).  

Mansoor Mohamed, the City’s Executive Director for Economic, Social Development and Tourism, said: “Despite current global economic challenges, Cape Town has yet again proved to be an attractive investment destination. The City of Cape Town has put together a strategy of infrastructure-led, economic development which is starting to bear fruit. The tender for the Velodrome is one of the biggest and most complex property transactions ever to be awarded on municipal land in Cape Town and it is the result of tremendous team work of several departments, led by the Property Management Department. This development will enhance Cape Town’s positioning as a globally competitive business and leisure destination. The City will continue to use its land resources to stimulate socio-economic development.”

Besides an estimated R2.2 billion development that will take place on the property, Mohamed indicated that “an additional R800 million is expected to accrue to the City in rates and service charges, proceeds on the disposal of land, enhancements to the Velodrome and athletic track, (which will remain Council assets), infrastructure levies and revenue sharing in event management. Devmet Property Developments will also take over the management of the Velodrome and athletic stadium. An estimated 26 000 direct and indirect jobs will be created by this development.

“This is a best-practice example of how the City, in partnership with the private sector, can enhance and utilise its property assets to achieve key strategic objectives and benefit the people of Cape Town,” Mohamed said.

Alderman Felicity Purchase, Mayoral Committee Member for Economic Development and Tourism, said: "The City recognises the importance of using municipal land as a mechanism for creating economic growth and jobs and has started employing more staff in the Property Management Department to facilitate more projects like this.”

Ruby Gelderbloem, the City’s Director: Property Management, said: "Devmet Property Developments submitted a development proposal that will enhance the area between the existing Tyger Valley Shopping Centre and the Parc Du Cap office park in terms of its design, form and urban fit. The design recognises the site constraints and incorporates the opportunities into a concept that will provide a balanced blend of retail, business, residential, hotel and conference facilities.   In addition to the existing sporting facilities, the Velodrome will be remodelled to complement the conference facilities with the staging of concerts, shows, trade affairs and exhibitions. A high performance sport centre will be incorporated into the sport and athletic facilities and will be used to provide specialised training to athletes.      

“The development is based on a spine ‘Galleria’ that will provide the circulation and connection to all the facilities.  Parking with entrances at various levels and locations will be provided to connect the hotel, conference and sporting facilities with the retail, business and residential components.   

 “Devmet Property Developments has put together a group of companies and management models that offer a suitable range of skills and experience in property development, property management, financial oversight, facilities management and events management. They incorporate and provide local and international experience, strategic partnerships and networks, and innovative technologies, designs and processes.  The group includes Devmet, Big Concerts, the High Performance Sports Centre and several smaller, specialist firms,” Gelderbloem added.

Members of the public and interested and affected parties will be given the opportunity to comment on the development as part of the land use planning process that will follow the successful conclusion of the legal agreements between the City and Devmet Property Developments.

The City is represented in this project by Andre Human and Pieter Matthysen from the Property Management Department.

It is envisaged that the development will be completed by 2014.