#Parktown Developments [Archive]

Pule

July 28th, 2011, 05:48 AM

Cross post, thanks Jerome.

Joburg inner-city improvements create space

Johannesburg CBD is undergoing a metamorphosis to meet the needs of a rapidly evolving economic and metropolitan hub.

Since the city's turnaround strategy was adopted in the early 2000s, Rea Vaya BRT (Bus Rapid Transit), properly tarred roads, new taxi ranks and more affordable residential accommodation are some of the positive infrastructural changes being implemented, providing a catalyst for further improvements and increased confidence in the inner city, says Sipho Shabangu, leasing and sales broker for JHI Properties.

"Various projects are either completed or under way in the CBD, Braamfontein, Newtown and the Empire Road area in Parktown," says Shabangu. "Major investors have shown increased confidence in this city. For example, the beautification project of Fox Street from the Carlton Centre to Eloff Street has been completed, and the upgrade in Kerk Street - commissioned by the Johannesburg Development Agency - has also been completed, breathing new life and energy into a previously deserted high street. The direct result is that retailers have demonstrated their confidence in the central city by establishing themselves right here.

"A further symbolic sign that the city is coming alive - day and night - is the refurbishment of the Johannesburg City Hall. In addition, the upgrades to Oppenheimer Park have been completed, and the park has been revitalised."

Shabangu says the mixed-use district of Braamfontein is showing a significant improvement in demand for office and residential accommodation, as people are feeling much safer about living and working in the area. Key contributors to this are the CCTV cameras which have been installed, and visible policing to help combat crime.

"However," says Shabangu, "the issue of parking remains a challenge for many properties, particularly high-rise buildings in the CBD and Braamfontein."

He says good news for the city is that planning is in progress for an impressive new mixed-used development to be known as Stimela Square, at the corner of Sauer and Hall streets on the southern fringe of the Joburg CBD, with good access to transport routes.

This landmark project creates a "city" in one block, with offices, shops and a hotel in one consolidated development. Located on part of the historical Ferreira's Camp (originally a mining camp), the development is arranged around an inner city garden square, created as the focal space of Stimela Square and a hive of retail and public activity. Centred on the square and with direct access will be 90 000m 2 of high-grade office space configured in six blocks. Designed to cater for tenant requirements these offices will range in size from 185-15 000m 2 at a gross rental of R119.50/m2.

In addition, land has been acquired with the purpose of developing a 60 000m 2 mixedused development next to historic Mary Fitzgerald Square in Newtown, on the western side of the Joburg CBD.

Shabangu says this development is planned to include mainly shops in what were originally potato sheds, and a hotel. A further project is an office component called The Majestic, opposite the worldfamous Market Theatre.

Says Shabangu: " This vibrant, cultural node is home to the Sci-Bono Discovery Centre, Museum Africa, the SAB World of Beer, Turbine Hall, with AngloGold Ashanti headquarters in Turbine Square, to name just a few attractions.

"Mary Fitzgerald Square, which is adjacent to The Majestic, hosts numerous outdoor shows, exhibitions and live music events which are held almost weekly. The Majestic office complex will be visible from the M1 highway, making it ideal for high-profile tenants that want an exclusive address in a fashionable node. Located on the corner of Bree and Miriam Makeba streets, The Majestic has easy access to the M1 north and south via the Carr Street on/off-ramps and is within walking distance of all major public transport modes .

"The Gautrain station, Park Station in Braamfontein, being complete should stimulate demand for office accommodation in the area.

"So too will the completion of the BRT station and the Rea Vaya construction that is taking place along Empire Road from Jan Smuts Avenue to the intersection of Joubert and Sam Hancock streets - a total of 1.3km. This scope of work also includes construction of the dedicated BRT lanes," he says.

Office parks such as Braampark - a property managed by JHI - also stand to benefit from these new developments, due to easy access to public transport, the BRT station, the Gautrain station and Metrorail's Park Station, and the proximity of the M1.

Shabangu says Braampark is experiencing increased at taking up approximately 2 500m2. Most of these deals are concluded at gross rentals of about R81/m 2."

Another new development set to benefit from the infrastructure improvements and revitalisation in the area is The Hill on Empire office park, where construction of the nine 5 000m 2 blocks is under way. This complex is on Empire Road, Parktown, close to the CBD and Braamfontein, and with the advantage of easy access to major motorways and all the popular northern suburban office nodes, and close to shops, amenities and all the interest from big users such as government and parastatal organisations.

"The uptake of space in Braampark has a l ready increased with the South African Human Rights Commission recently acquiring about 7 000m 2, and with two other major users in the process of finalising leases for approximately 4 500m 2 each. Another interested tenant, a private institution, is looking major banks that are represented in downtown Parktown.

"The expansion of Empire Road and construction of the BRT station under way will facilitate access to the M1 for private and public transport users, providing another positive for the commercial property market in the area," Shabangu says.

Weekend Argus (Sunday Edition)

Posted at 07:48PM Jul 24, 2011 by Editor in Market

http://www.iolproperty.co.za/roller/news/entry/joburg_inner_city_improvements_create