Investment

2018-07-24 06:00

Despite the expected investment in Central City developments decreasing, the more than 30 developments going ahead speak to the successful asset the Central City has become.

This sentiment was expressed at the Cape Town Central City Improvement District’s (CCID) annual business breakfast last week.

At the function on Tuesday, CCID communications manager and author of the CCID’s State of the Cape Town Central City Report: A year in review – 2017, estimated that the total value of proposed, planned, under-construction and completed development projects (between December last year and 2020) was R22 854bn.

When released in May, the latest edition of the report revealed that almost R24bn of investment has, conservatively, been committed to the Central City since the start of 2017 (“Investment climbs”, People’s Post, 22 May).

In comparison, around R16.2bn of investment was noted in the 2016 report.

The report (which annually reflects on the economic climate in the CBD across the previous year), indicates that, despite enormous economic pressure on the country, Cape Town’s downtown continues to attract investors and maintain confidence in the property marketplace across commercial, retail and residential sectors.

The variation in numbers comes as a result of a large residential project, which was expected to cost around R1.5bn, being announced prematurely.

The site has since been acquired for a commercial redevelopment, with a much lower value, Koblitz explains.

Koblitz says: “Even since we published the last report, and based on the status quo as at the end of 2017, the numbers have changed. Hence the reason for our mid-year update at our business breakfast.”

She adds that during last week alone the estimated investment would have changed, based on an announcement by the City of Cape Town to cancel the Request for Proposals for the development of the Foreshore Freeway Precinct (read more on page 1).

This project held an estimated value of R8.3bn.

But despite these fluctuations, CCID chairperson Rob Kane stressed at the business breakfast that a successful downtown was the most visible indicator of a successful city, and reflected whether that downtown would be an asset or a liability in its efforts to recruit new businesses and economic sectors, as well as residents and visitors both locally and abroad.

Kane noted that of the 13 development and redevelopment projects that had come online during the past year, six were private sector investments with a total value of R2.350bn.

“Going forward, the 35 other developments currently under construction or in either a planning or proposed phase – all of which are hoped to start construction by 2020 – very healthily continue this trend of commitment from both the public and private sectors, and reflect an additional value, very conservatively speaking, of an additional R19.306bn.”

Kane stressed that the term “conservatively” was used, as: “Not all development values are currently known to us as the CCID.”

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