City’s prime CBD property lease auction set to boost the economy | City’s prime CBD property lease auction set to boost the economy | | <img alt="" src="https://resource.capetown.gov.za/cityassets/PublishingImages/City%20news.jpg" style="BORDER:0px solid;" /> | <p>The City of Cape Town’s Economic Growth Directorate is getting ready to auction a lease opportunity of the bulk development rights on the Foreshore Tower site. This is a key property, with excellent accessibility and a prime location next to the Cape Town International Convention Centre, in the Cape Town Foreshore Precinct of the Central Business Area, with spectacular views over Table Bay Harbour. This transaction will see revenue generated from the lease, once successfully auctioned, create employment and boost Cape Town’s economy.<br></p> | <p><br></p><table cellspacing="0" width="100%" class="ms-rteTable-default"><tbody><tr><td class="ms-rteTable-default" style="width:100%;"><p><strong>What to know about this development lease opportunity auction for the Tower Block site:</strong></p><ul><li>It will take place on<strong> 14 March 2024, online and in-person. </strong></li><li>The site is vacant and is located at the <strong>corner of Heerengracht and FW de Klerk Boulevard</strong>, on a portion of Erf 270, zoned General Business.<span style="text-decoration:line-through;"> </span></li><li>The current zoning permissions for the usable bulk rights is conservatively estimated at approximately 25 000m<sup>2</sup>. </li><li>The remaining bulk rights could be explored by the winning bidder through a formal planning process.</li><li>Remainder Erf 192 Roggebaai, earmarked for possible overflow parking.</li><li>Find the link to the FAQ: <a href="https://bit.ly/3vKKosO">https://bit.ly/3vKKosO</a><br></li></ul></td></tr></tbody></table><p> </p><p>A key part of the City's Economic Growth Directorate's contribution is re-looking at the City's business systems through an Ease of Doing Business lens, utilising smart real estate services to extract and maximise the economic and social return from City assets. We are committed to fully exploring the opportunity to incorporate the deployment and utilisation of the City of Cape Town's immovable property asset portfolio as a pillar of our economic recovery.<br></p><p><span><figure class="subtopic-fullsize-img"><img class="responsive" src="https://resource.capetown.gov.za/cityassets/Media%20Images%202/Tower%20Block_01.jpg" alt="" style="width:802px;" /></figure></span></p><p style="text-align:justify;">'The Foreshore Tower site is strategically located so by releasing the footprint for development, the City will provide a sought-after opportunity for commercial property development, catalysing economic growth, creating employment opportunities and generating revenue for service delivery throughout the city. It is anticipated that the development of this site will attract substantial investment from private property developers, for the construction of the Foreshore Tower and associated amenities.<br></p><p style="text-align:justify;">'The highest and best use for the property is considered mixed use typologies based on the demand and the primary uses allowed. This includes primary uses such as a multi-level office, hotel and leisure. Having said that, the City is non-prescriptive of the use as long it is in line with the zoning and development rights and complements the existing operations at the Cape Town International Convention Centre (CTICC). <br></p><p style="text-align:justify;">'Foreseeing a bespoke development, which is highly capital intensive, a 99-year lease will ensure a return on investment for the potential developers. The period also allows the City to generate revenue for Cape Town's service delivery. <br></p><p>'By auctioning this lease opportunity within the mandated competitive process, the City will open the bidding opportunity to attract a wider audience, both locally and internationally, who are eager to consider such a high value investment journey with the City. <br></p><p style="text-align:justify;">'Investment in the development of this property will bolster the City's economy with massive social-economic spin-offs contributing to the Metro's GDP, create employment opportunities, and be a productive asset in perpetuity. This bespoke development will complement the CTICC's offering, further enhancing attractions to international conferences which in all, bolsters the City's fiscus to provide basic services to our citizens, while helping to reduce unemployment,' said Alderman James Vos, Mayoral Committee Member for Economic Growth. <br></p><p style="text-align:justify;">The planned development of this site was embedded when the City undertook a feasibility study for the development of Erf 270, concurrently with the planning for the CTICC 2 expansion around 2014, where the opportunity for the Foreshore Tower development was identified. In terms of the legislation and policies that governs the management of public land, it has been determined that the subject property is not required for municipal basic services. In line with the highest and best use of the property, a development partner is deemed appropriate to realise the development of this nature. The Foreshore Tower will be structurally and operationally integrated with the CTICC 2.<br></p><p style="text-align:justify;">'The release of this opportunity has been timed to take advantage of the post Covid-19 revival in the CBD. The Central City Improvement District reported in their 2022 State of Cape Town Central City report that commercial landlords have successfully slowed down the work-from-home trend and continued to encourage tenants to return to the workplace by creating more tactile and interactive office environments. With the construction sector also regaining its pre-Covid-19 momentum, the 2022 report shows that the total value of property developments in the CBD, conservatively estimated, stood at R3,6 billion,' said Alderman Vos. <br></p><p><br></p><p><strong>End</strong><br></p> | 2024-01-24T22:00:00Z | GP0|#1d539e44-7c8c-4646-887d-386dc1d95d70;L0|#01d539e44-7c8c-4646-887d-386dc1d95d70|City news;GTSet|#62efe227-07aa-45e7-944c-ceebacca891d | | | | | GP0|#8817ff3b-0e95-4d62-ba15-c815ad425b94;L0|#08817ff3b-0e95-4d62-ba15-c815ad425b94|economic development;GTSet|#2e3de6c1-9951-4747-8f53-470629a399bb | 1 | | | | | | | | | | City of Cape Town, Media Office | 0 |