NAME: The Mast
LOCATION: Durban Point
STATUS: Approved
FLOORS: 40F
HEIGHT: 153m
USE: Mixed Use (Residential and Retail)

173 Apartments, 50% sold

Situated directly next to San Raphael

Construction planned to begin in March/April 2006

This project has been in the planning stages for 10 years, while waiting to aquire all the land parcels needed.

Is expensive at R32 000/m2. Bachelor apartment 40m2, R600k...top penthouse R12m


http://www.themast.co.za/images/logo.jpg

http://www.themast.co.za/gallery/images/enlargements/impressions/mast_full-front.jpg

http://www.themast.co.za/gallery/images/enlargements/impressions/mast_top%20apartments_right%20veiw.jpg

http://www.themast.co.za/gallery/images/enlargements/impressions/mast_top%20apartments_left%20veiw.jpg

http://www.themast.co.za/gallery/images/enlargements/impressions/mast_looking%20up%20view.jpg

http://www.themast.co.za/gallery/images/enlargements/themast.jpg

Interior

http://www.themast.co.za/gallery/images/enlargements/New/dbl%20vol%201.jpg

http://www.themast.co.za/gallery/images/enlargements/New/g2_dblv.jpg

http://www.themast.co.za/gallery/images/enlargements/New/Loft2Bedroom.jpg

http://www.themast.co.za/gallery/images/enlargements/New/Loft2Bedroom1-.jpg

http://www.themast.co.za/gallery/images/enlargements/New/Penthouse1_150206.jpg

http://www.themast.co.za/gallery/images/enlargements/New/penthouse2.jpg



Project Framework - The Co-Developer Concept

One of the initiators of the Co-Developer concept is Executive Chairman of the Private Property Group of companies, Justin Clarke. Private Property was established in 1999 and challenged the way that residential property was marketed and sold in South Africa and has become the leader in digital marketing on the continent. The Private Property website is the busiest property website in South Africa, according to statistics monitored and released by the Online Publishers association, and Private Property together with their Estate Agency Division, Agent Direct Services (Pty) Ltd, has the biggest permission-based database of buyers nationally. They currently have 126 000 active buyers and investors who have supplied details of their preferred property preferences.

The message from this very large sample of buyers is clear:
There is still a significant investor pool BUT they are now very selective.
They are looking for “REAL VALUE”
They are looking at areas where there is a strong likelihood that the market will move faster than the predicted average house price increase predicted till 2010 of 10% compounding.
There is currently strong interest from overseas buyers especially in KZN seaside apartments.
There is still strong interest in seaside properties below R1 500 000 from Gauteng Buyers.
Many investors are not risk adverse; they are prepared to take a risk if there is a real value proposition.
There are also many small Developers and speculative builders who are familiar with the risk associated with property development and have the resources to make such an investment. The benefit of the scheme provides these co-developers with potential returns on capital employed of as much as 300% over the 3 year period.



Project Framework - The process

The project has gone through an intensive planning process which started in mid 1994. A group of investors including many of the professional team have acquired and taken transfer of 3 of the four sites and the fourth site is secured to transfer early in 2006.

The professional team has worked at risk over the last year to produce a final product, with each apartment clearly designed and numbered. An experienced team has been assembled to ensure DELIVERY of the finished product. The structural engineers headed up by Dr Harry May have been involved in designing more than 150 high-rise buildings, many of which are located in Durban.

It was established early on in the process that the risks had to be contained and costs would be a critical to the success of the share block methodology.

Two separate firms of Quantity surveyors have been negotiating with KZN’s biggest contractor Ross Construction, to accurately cost the project and all have agreed on a final number. Ross construction also is building the neighbouring tower block on the point “The Spinnaker” and we have benefited from their experience on that project. Ross has already ordered equipment from abroad capable of moving material at the heights planned and some innovative new process will be adopted.

The level of planning and preparation is more advanced than the conventional scheme and more in line with the process followed by institutional developers.

Co-developers and investors interested in participating in the scheme will be asked to sign a letter of intent available on the this website.

Upon full subscription (100% sales) the share sale agreements will be presented and funds released to exercise the option to purchase the land, and to begin the construction phase. the balance of the project finance will be provided by a financial institution as bridging finance until completion of the construction phase and opening of the sectional register.

We envisage construction beginning in March 2006.



The Team


One of the initiators of the Co-Developer concept is Executive Chairman of the Private Property Group of companies, Justin Clarke. Private Property was established in 1999 and challenged the way that residential property was marketed and sold in South Africa and has become the leader in digital marketing on the continent. The Private Property website is the busiest property website in South Africa, according to statistics monitored and released by the Online Publishers association, and Private Property together with their Estate Agency Division, Agent Direct Services (Pty) Ltd, has the biggest permission-based database of buyers nationally. They currently have 126 000 active buyers and investors who have supplied details of their preferred property preferences.

The Professional Team

(Please note: Members of the professional team will be formally appointed when the Share Block company is established and 100% subscribed)

Architect:
CTA has over 10 years experience and has the resources to handle a building of this size. Though it is their first high-rise, they have relied on MHA’s experience in terms of the structural essence of the design. CTA has achieved approval from the DPDC design review panel and most of the local authority internal departments (in particular fire and traffic are mentioned, since they often hinder high-rise design approval).

Structural Engineers:
May Houseman Associates
Arguably the most experienced high rise consultants in Durban. Dr Harry May has engineered a large portion of the high-rises in Durban and is currently the consultant on the nearby high-rise named 'Spinnaker'. Since high-rise buildings are primarily an engineering exercise, we believe that MHA’s current and previous experience makes them the ideal for the job.

Electrical / Mechanical / Fire Engineers:
WSP are widely known for their experience in all spheres of building types. They are an international firm and bring resources and experience to the table.

Quantity Surveyors:
This is a Joint venture between Van Rensburg Schulze & Partners of Ballito and VJV Consultants of Umhlanga Rocks. Both practices have more than 20 years experience.

Project Manager:
Peter Riddell – previous Managing Director of Group 5, has experience with various high-rise buildings including 110m Old Mutual Towers, which was built by Group 5 during his period as Managing Director.

Contractor:
JT Ross is a 3rd generation construction company. Their experience is well known and of particular relevance is that they are currently undertaking the nearby high-rise 'Spinnaker'. Hence, their knowledge of the current issues relating to high-rises in the area makes them an ideal company to have negotiated with.

Town Planner:
Karen Peterson.

Land Surveyors:
Button and O’Connor – Mark Turnbill.

AWESOME, such height...i do wish that it gets a bit of a design tweak tho to soften the edges. Dont worry about the massive white side on the right of the render, that part is against San Raphael so wont be seen.

initially was 32F + 110m with 154 apartments. However now at 40F + 173 apartments, i take it will be +/- 140m

I really love the top floors of the building, but I don't really like the base. I think it would have been to have kept a cylindrical shape the whole down the building, similar to Ponte. But the height is a big plus.. the Point will soon look fantastic! Infact the whole Durban beachfront will.

40 floors? wonderful news. That would make it Cape Town's tallest... lol

OMG!! Finally...I have been waiting for this tower for quite awhile now! :D :D Glad to see the height AND the location! Love the tower part...the base needs some tweaking though...maybe dovetail the corners....and do something with the white mass.......

Love it though......

i am so happy i am almost getting a woodie.
This is insane and well spotted mike. Now we need a height and Ill ammend emporis with tihs going from propsed to approved.
is it fronting onto Point rd ?

Awesome stuff for Durbs! I love these new double volume apartments with lots of glass! its just wat u need when u living near the sea. It does need a few minor design reviews but it doesnt look that bad, I can understand the squarish base, most of the "bachelor pads" will be there, they can squeeze in alot of rooms there, while in the tower the bigger apartments will be situated there.

from what I can see the tower will face both the harbour and the sea (over some devlopments?) what is on the sea side of the tower?

OMIGOD, I almost peeed in my pants when I saw this thread!

The design is not as stunning as San Raphael but I LOVE the height. Will make an impressive skyline with San Raphael, Spinnaker, and Mont Blanc not too far from here. Yummilicious! I do hope, though, that the design undergoes some modification. Would have been great if the whole thing was in glass and steel.

By the way, how did such a big project stay secret for so long when 50% is already sold? Or am missing something here??

Now we need some positive news on the proposed 40 floor building on the Vic embankment...

yeah how come 50% is sold and we have never seen an advert or mention of it?

The developer is the owner of Private Property. Through his vast network of connections sales were made without ever needing to go public.

The tower is exactly like San Raphael next door, in that it opens on both Point road, and the small road next to ushaka's present parking lot. This parking lot is not to be redeveloped just yet. (the neighbouring one is becoming Shaka's Gate in front the Spinnaker). This parking will be released for development in 2008 once Shaka's Gate (and its parkade) and the shopping complex (and its parkade) are complete.

The harbour and city views (like spinnakers and san raphaels) will be unimpeded. The lower floors may lose some sea views when the parking lot is released, but it has a max height of 15F, so wont really affect the building at all.

The hotel resorts on the beach are further along and will in no way affect these developments view of the coastline northwards.

also they told me that the last remaining high rise site next to the Spinnaker is in the final phases of launch and will be the tallest of all 3!!! YAY!!!

http://www.themast.co.za/gallery/images/enlargements/impressions/mast_full-front.jpg

this is the point road side render

last site? I was told by the developers of SR that there were 12 High rise sites with SR being the last one along Point Rd.
If you tale SR, spinaker, Chakas gate, skyhomes and the mast ( all high rise with 12f plus) then we are 7 short.
maybe when theis new biggie is anounced we may hear some more.
whats the feeling on this new tower-44F and 160m? or are we gonna be really bold and predict Durbans first 50F tower?

ooh 50F would be amazing!! Dont for get that the tower i spoke about last year by a top international architect hasnt been released....

The prob with the other high rise sites, is that they are presently owned by many individuals. the small land parcels need to be bought by one group to make sites that can be developed. i wont be surprised if we hear of 3 or 4 more this year!!

that is a superb project. Is it defo going ahead?

yes...spoke to them today, building starts first week in april

Mike when you spoke to them did you ask for a height?

This is gonna be awesome to see built! Finally a high high rise for Durbs!!!

Awesome awesome news!! Definitely needs some tweaking though - reminds me a little too much of that circular building next to the Wheel (although the end result will obviously be vastly different). The double volume apartments make it look like less than 40 floors but I guess they're nice to have. Will be a great addition to Durbs skyline. Really excited to know what else is going to be going up around there!

its amazing, in 25 years of living in Durban I can only remember the Embassy ,the Hilton and Old Mutual Centre going up and have vague memories of like maluti, mallington , the place and Mont blanc and now Im away we are talking towers in the 40s , with 20s and 30s all over the place.
Really wish there would be a CBD tower as it is what makes a statement about the health of a city

well the Vic embankment tower will add to the cbd skyline, next to embassy and john ross house. need more info on it!!

Regards this one, i asked for a height but they said that once the last signature was recieved by council this week they would release that.

excellent , open developers who are willing to share some intresting info.
Building needs to break the 146m barrier to be Durbans tallest (surpasing Metlife/88 field)
also cant wait for the vic embankment tower

where about in Vic embankment is this tower going up?

^^ after john ross house, on the corner of the road that leads up the Embassy building

So Urban Hip Hotels said they were going to venture into Durban and Cape Town, now they have. The Mast is now part of the Urban Hip Hotels bracket. A specific number of apartments are to be set aside as a hotel component within the building.

The developers have also confirmed that the building will be the tallest in Durban Point, and taller than 88 on field!!! So goodbye to 88 on Field...but its success wont lead to it being tallest in durban, both Pearl Sky and Pearl Dawn will be taller!

The Mast is to be 153m

i dont really like this tower bad design but hey it aint a block and will be the same height as the tower in sandton

^^ after john ross house, on the corner of the road that leads up the Embassy building
man forgot about its looks thats lekker adds to the skyline ya!!

mike, is 153m confirmed by developers? Ill change emporis and this means that Durbs gets the 2nd tallest build city title back from CT.
if you say that the pearls will be taller do you know the heights?

all i know is that the developers told me that the two tallest pearls towers would be taller than this one, but they didnt give me heights. The height came from architect

wow , i wonder what the height of the U/C pearl tower is at 25F
the 2 other pearls I recon are 160m and 185m

i have confirmation that the spires on the 2 shorter pearls towers are 37m

okay so is it on this side http://img.photobucket.com/albums/v297/hsark/185422.jpg:this is really exciting as nothing much has happened in the durbs cbd outside the absa building and ponte: well compared to ct and jhb

So let me get this right: this is going up on vic embankment next to the roma revolving restaurant? Surely that is a silly place cos its still quite rough round there

From what I gather the Mast will be in the Point Waterfront, not on the Victoria Embankment. The proposed tower next to John Ross House is apparently another 40+ story tower. Do I have this right, Mike?

Its right next to San Raphael!

I'm confused, is it on the Vic embankment or the Point? can anyone get a locality sketch or site plan?

am also confused. so there are two 40 storey towers going up?

ok here is the deal, the mast is a 40f resi tower next to SR on point rd in a high rise corridor created by the council in order for there to be continious highrise ringing the bay. Imagine the view from the water looking back at the city-WOW.
Secondly there is a proposal for a mixed use tower right where Hsark showed in his post, nothing confirmed or announced or render released but its obviously in planning and one would hope it will be announced sometime soon.
so there are 2 seperate 40F towers, 1 approved and the other proposed

oh.................ok.
thanx for that.

yeh...giles is correct, sorry for all the confusion. And that site in the pic is the site.

Grinrod also have plans for another tower on the vic embankment, for they have a dire need for more office space. they have a small site that they use as a car park at present, they are planning to build a 12-15F tower there.

I know the car park site well, its worth a bomb and would suit a decent sized 25F tower depending on what the bulk is allowed by councill.
That pic of John Ross house is actually mine when I was in Durban 3 years ago, doesnt look half bad

ya i stole it from skyscrapers.com pic taken by giles

Here's the site for the Mast, with the sandpit nextdoor the start on San Raphael. On closer inspection, the Mast is sandwiched between SR on the one side and another site or two on the other...so there are two other prime high rise sites directly next to this one, no road in between!

http://i26.photobucket.com/albums/c128/dysan1/IMGP1503.jpg

^^Its looking gud so far :crazy2:

looks like they will retain the artdeco front , cool cafe setting

Any more news on this. I know construction only starts next year but was hoping a design had been changed a bit.

well i'm sure the design will change a bit, like shaka's gate has...wil have to see

" the team of consultants have been working for over a year on risk" that explains the weak attempt at a tall building, hope Harry was sober when he designed this one!

nothing demotivates a consultant like not getting paid. we can say that spinnikar and SR have started and monyeni is about to begin but this is still a while away

design has changed a bit i think i looked at model it might still be a usaka ive got pics somewhere i think

yeh they have touched up some of the sharp angles..

That plot is rather small tho

Work began this week i am told

From the urban hip hotels website:

The Mast, a R350 million high-rise development at the Durban point waterfront. This 40 storey tower block will on completion be the highest structure on the South African coastline!! and will afford guests an unparallel 360 degrees view of the Indian Ocean, the harbor and the city lights in fact on a clear day one should be able to see the Drakensberg Mountains some 250 km away. This landmark development will house 137 luxury apartments and penthouses, serviced offices, gymnasium, heated indoor swimming pool, restaurants, coffee shops and designer retail outlets.

I have a brochure from WSP UK Based (engineering firm ) and they refer to the mast as a 110m tower in Durban South Africa. ?????

WSP is world wide, we know who they are :D

No idea on any stats as yet, as many firms are still closed, most will be back in action on the 15th, damn those builders get a nice long holiday!

Gents, can you please combine all the images of Durban's new developments and give us an indication of how the city will look like when all these are done, PLEASE.

I have a brochure from WSP UK Based (engineering firm ) and they refer to the mast as a 110m tower in Durban South Africa. ?????

i see the 110m alot too...but everytime i contact them when i see that they reassure me that its original height was 110m but it is now taller. so i will keep trying to figure it out, but i'm sticking with the 153m i was given long ago until i have 100% proof that its not anymore

Durban's Waterfront to get its own Mast

(New Developments) The Point’s latest development to be announced is the The Mast near the site of the Smugglers Inn with construction set to start in March and occupation of the 135 units from the middle to late 2009. The project is being sold on a share block system, which allows purchasers to become co-developers in the development company The Mast Shareblock Limited, but will be registered as a sectional title development with its own register on completion. So far 112 units have been sold in The Mast at prices ranging from R11 000 per sqm to R13 000 per sm. This translates to a purchasing price of just over R1m for 80sqm units with balcony of which 55 sqm is under roof.

from the renderings, looks like it has quite a few loft apartments, any idea how much they going for?

all prices on the site....

any construction news on this saw a billboard on the site last year

well they are presently demolishing all the buildings on site and have a sales office on site too. stopped by today. guy says the crews are moving in mid march. then got stuck in traffic for over an hour to get to durban north cos the bloody A1 has lead to so many road closures

http://www.urbanhiphotels.co.za/images/uhhlogo.gif

The Mast

The Mast, a R350 million high-rise development at the Durban point waterfront. This 40 storey tower block will on completion be the highest structure on the South African coastline!! and will afford guests an unparallel 360 degrees view of the Indian Ocean, the harbor and the city lights in fact on a clear day one should be able to see the Drakensberg Mountains some 250 km away. This landmark development will house 137 luxury apartments and penthouses, serviced offices, gymnasium, heated indoor swimming pool, restaurants, coffee shops and designer retail outlets.

well they are presently demolishing all the buildings on site and have a sales office on site too. stopped by today. guy says the crews are moving in mid march. then got stuck in traffic for over an hour to get to durban north cos the bloody A1 has lead to so many road closures

tell me about it, we had to cancel a Point Bay site meeting cos of the traffic! :bash:

good to hear nothing better than a sea of cranes at the beach hope durbs becomes like luanda :) "construction skyline"

It will! I mean it has, when you coming down the N3 towards the city passed Tollgate bridge, you can see all the cranes on the Point, with the Spinnaker being the highest.

And when ur work around the ICC starts, plus the other dev around it, then there will be a vast sea of cranes on show from tollgate. Kinda like what u see when going over the millenium bridge in umhlanga

great :) the question i want to find out is where is the best place to take a pic hope someone can come up with a panoramic view of durbs and all the cranes i need a new wallpaper

Prob the UKZN libarary or somewhere in glenwood

.....Or the Musgrave Road area.

but wouldnt the buildings in the cbd then block the point construction?

oh ya true, maybe Glenwood is the Ideal area then.

Site is now clear. work should be starting

Dysan1,
Has work started on The Mast site?

nope, still just a clear site

What is the deal this time? Do you know when it will start or has it been canned like San Raphael?

no, the site says construction from june.

That's good to hear. Also the website for the Mast still works while the one for San Raphael has been closed down. Keep tabs on this one. Maybe they have a lower cost structure than San Raphael as this project on the surface seems to appear to be more realistic. It also appears more in tune with the area and does not clash with the Spinnaker, which is under construction.

I also like the fact that it will have an hotel component which will be run by Urban Hip Hotels, which also manages the Splice and Franklin in Johannesburg, the landmark Icon building on Cape Town's foreshore and will run the hotel component in the new Pearls of Umhlanga 4-tower complex under construction.

This development was also launched 2 years after San raphael!

great

so whats the status on this dev.

i have emailed the developer and sales agents to find out.

so whats the status on this dev.

Cancellation of Mast shareblock development scheme

Against all our best efforts the development as proposed is no longer viable and has been suspended.

After a fourth redesign of the tower, with considerable rationalization to save time and costs, but applying the new construction rates the unit cost actually worked out more expensive than the original scheme. The P&G from the contractor has almost doubled since our first feasibility 18 months ago.

We will therefore not proceed with the scheme in its current form, and may re-launch the project when the point matures and can sustain the sale prices that we need to attain to make the scheme work.

For more information, please contact Justin@privateproperty.co.za

and another one bites the dust

What a waste of time!

How can they not build blocks like that economically in an area like the point? Are people becomming too greedy?

and another one bites the dust
damnit ! u beat me to it

What a pity. Like San Rapahel, they waited too long to act on this. Spinnaker developers did the right thing by starting construction early. I hope something comes of that site.

^^ exactly. They pushed their development thru. holding costs are a massive killer.

On a positive note, i heard mumblings that 2 new 12 and 16F towers will be built along the new point exit road in the area between the icc and the beach. that area is about to blossom.

For this area i think developers need to making their buildings more innovative. Findle tower is doing that by incorporating a 300 bed hotel and predominately commercial space with a few select penthouses which are retailing at R12m a piece.

As Justin pointed out, to make high rise a success the prices need to be right.

What a pity. Like San Rapahel, they waited too long to act on this. Spinnaker developers did the right thing by starting construction early. I hope something comes of that site.

That's because they started the Spinnaker when the economy was still booming at over 5% GDP growth but with the recent rise in interest rates, a 7% inflation rate that shows no signs of abating, the ballooning current account deficit, the worsening skills crisis, and concerns over reliable power supply, the SA economy is no doubt slowing and will probably grow by 4.3% this year and 4.0% next year with the unlikelyhood of reaching the magical 6% before 2015. The slowdown in property price rises is evident all over the country and although they are at a high base by SA stardards, by international standards SA prices are still cheap meaning that the country still has to catch up to the global average on property prices. For this reason international investors think SA still needs more years of steady economic growth in order to catch up.

Thats not the reason for the development faltering, its bad planning and implmentation by the developer. San raphael started at the same time as the spinnaker and never left the ground.

City economies in Durban, CT and Joburg are all still way over 5% growth

Also, property prices are still rising over 25% in certain areas.

^^ exactly. They pushed their development thru. holding costs are a massive killer.

On a positive note, i heard mumblings that 2 new 12 and 16F towers will be built along the new point exit road in the area between the icc and the beach. that area is about to blossom.

For this area i think developers need to making their buildings more innovative. Findle tower is doing that by incorporating a 300 bed hotel and predominately commercial space with a few select penthouses which are retailing at R12m a piece.

As Justin pointed out, to make high rise a success the prices need to be right.

But the problem is that office rents in Durban CBD and Point area may not justify it yet. Only in Sandton, Rosebank, Cape Town Waterfront, Century City and Umhlanga are at the rate per square metre high enough to justify the cost. Sure Durban CBD is coming up but not fast enough to overcome the massive increase in building costs caused mainly by the economic bottlenecks reached in the country and the dire shortage of skilled personnel that seems to be holding SA back considerably.

the point point has office space rental of R95m2 at present with new stock coming on the market at R110m2, hardly the bottom end of the price bracket. The same is evident in riverhorse valley. The point is a prime node, with AAA office space and will in time develop into a key node for landmark office space in the city.

Quote from the developer of the new point office tower: "We are looking at pricing between R18000/m² - R20000/m² as it will likely be the only high-rise A-grade of this caliber in the Durban Point. We already have 30% of space sold before launch"

the point point has office space rental of R95m2 at present with new stock coming on the market at R110m2, hardly the bottom end of the price bracket. The same is evident in riverhorse valley. The point is a prime node, with AAA office space and will in time develop into a key node for landmark office space in the city.

Quote from the developer of the new point office tower: "We are looking at pricing between R18000/m² - R20000/m² as it will likely be the only high-rise A-grade of this caliber in the Durban Point. We already have 30% of space sold before launch"

That may be true but the Point has to compete with the massive development taking place in at Umhlanga Ridge where at least R10 billion has been invested or is in the pipeline. The Point will not be able to compete with Umhlanga and has the additional problem of lack of accessibility and crime in the inner city. The massive growth of decentralised nodes taking place is happenning all over the country. Even in Cape Town CBD, which has the most viable CBD in the country that has withstood the times, is being constrained by the massive growth of Century City where an 11-block office complex called the Estuaries is being built, and Claremont. The problem often with CBD's and why there has been this decentralization is congested freeways and lack of parking space. This is a real problem in Cape Town although Durban has better freeways. In addition offices are being built with shorter commutes in mind.

This also means that Urban Hip Hotels will have to find another development for it's market in Durban although it already has the Pearls of Umhlanga in it's stable.

This development is still feature on the Point's website, does it mean that it might go though or may be the website hasn't been updated?

^^ Sorry Pule, the website hasnt been updated for a good year (or even more) really a bad reflection for the rest of the project..

Thanx Luf.

The Mast's own website indicates that the project has been shelved.

That blows :(

If all canned projects in Durbs could have been built, it would have been having the best skyline in SA and for sure would be a must see city. I really do not understand why all those interesting projects are being canned in Durbs as I believ that guys from the oil rich countries in the middle east would want to invest there as the Durban culrture would probably fit well with theirs. IMO the municipality is the one to blame, how come the UDZ not attract investment while places like Umhlanga which do not fall under UDZ receive so much investment. The business confidence in the CBD is lacking big time and that's what the municipality should be tackling.

What's happening to Durban is exactly what's happenign to the Barbarican and the old Rissik post office in jozi's CBD. They all are charmers but their owners do not care for them

If all canned projects in Durbs could have been built, it would have been having the best skyline in SA and for sure would be a must see city. I really do not understand why all those interesting projects are being canned in Durbs as I believ that guys from the oil rich countries in the middle east would want to invest there as the Durban culrture would probably fit well with theirs. IMO the municipality is the one to blame, how come the UDZ not attract investment while places like Umhlanga which do not fall under UDZ receive so much investment. The business confidence in the CBD is lacking big time and that's what the municipality should be tackling.

What's happening to Durban is exactly what's happenign to the Barbarican and the old Rissik post office in jozi's CBD. They all are charmers but their owners do not care for them


i agree Pule. My dig is that if the focus was on the Victoria Embankment Developent rather than the SCH you would see folks flocking to invest in the CBD again.....

If all canned projects in Durbs could have been built, it would have been having the best skyline in SA and for sure would be a must see city. I really do not understand why all those interesting projects are being canned in Durbs as I believ that guys from the oil rich countries in the middle east would want to invest there as the Durban culrture would probably fit well with theirs. IMO the municipality is the one to blame, how come the UDZ not attract investment while places like Umhlanga which do not fall under UDZ receive so much investment. The business confidence in the CBD is lacking big time and that's what the municipality should be tackling.

What's happening to Durban is exactly what's happenign to the Barbarican and the old Rissik post office in jozi's CBD. They all are charmers but their owners do not care for them

That is because Umhlanga offers better returns without the risks associated with crime and grime in Durban's CBD and inner city which are decaying from lack of investment and and both capital and human resource flight Umhlanga and other suburbs like Westville. That is why all of the new hotels are being built in the Umhlanga area while those in the CBD area are faced with low rates that do not justify investment and will eventually become redundant when the new Umhlanga hotels open for business. Itls like what happened when Carlton and Johannesburg Sun closed down in the CBD after new hotels were built in Sandton and Rosebank.

Not quite. There's new hotels currently under construction in the CBD with more planned. And the city has the highest occupancies rates of SA cities.

And to add to Greg's post, Mosi, you appear to be uninformed about investments and improvements in Durban's CBD. Please pick up the latest issue of the Property Magazine (KZN) for details of the recent investments and turn-around of Durban's CBD. In short, more than R1 billion has been invested in the UDZ, to date, and this figure is rising. The latest issue of Durban's MetroBeat also highlights some of the improvements and investments in the CBD.

Here's the article for your convenience, cross-posted from the Durban thread. The link has pics of the downtown, although more appear in the hardcopy version.

--------------------------
The inside story

Let’s not beat about the bush: the perception of most of the ‘previously advantaged’ is that the CBD is a frightening hotbed of crime and grime, best avoided. Districts such as Warwick Triangle are considered not only unsanitary and dangerous, but threatening, too... largely because of a sense of being an unwelcome outsider in this other world, other culture, other language… The question is: when did you last go to town?

Over the past 10 years, architect Richard Dobson, who until recently headed up the Inner Thekwini Regeneration and Urban Management Programme (iTrump), established by eThekwini Municipality, has been deeply involved at grassroots level in the regeneration of Durban’s CBD, in particular the mammoth Warwick Junction project. His firm and comforting conviction is that we, as a city, are on the right track: ‘There’s a serious degree of unreality in terms of how people think a South African city is actually going to grow and develop. Durban is far more rooted. It might be world-imperfect at the moment, but I think we’re the only city grasping the nettle with a fair degree of success… Where we’ve come from in the past, our cities were exclusionary, so we’ve never tapped into the self-serving energy that’s there when people realise something is working for them. If people are included in the processes and their urban uses and urban preferences are recognised, then they start to buy into the City. If you begin to understand what’s going on there and work with it, you start to get huge paybacks.’

Open-minded locals and visitors who enter the city regularly can’t help but see significant changes taking place: revamped buildings, an improved physical face to the CBD, major new investors – in short, what our municipality and its partners are doing to reinvent Durban. But mention Warwick Junction to those outside the loop and they shrink – visibly. That view’s an historic hangover, and 10 years into the extensive rejuvenation projects, the Junction’s now on the cusp of becoming a key tourist attraction. Look out for the Heritage Trail, a tourist route linking the different sectors of the market. Also look out for the R400-million investment pegged for constructing the 22 000m2 Warwick Mall, a private development by a Durban-based empowerment company, which will straddle the railway lines at Berea Station, complemented by a Municipality contribution of a 500-bay taxi rank.

Hoosen Moolla, acting manager of iTrump, is based in the interactive Warwick Junction Project Centre, previously a beyond-dilapidated building renovated for the purpose. ‘In the ’90s,’ he says, ‘the City saw a need for regeneration of the Warwick Avenue area, which was, in effect, the backend of the City and served as the main entry point for black people because of the apartheid design. The best way to regenerate the area was to move into it, set up a base and become accessible to all. All stakeholders needed to meet, and this building became that place. Our approach was bottom up, not dictating from the top down.’

Warwick Junction is no small operation – it’s the hub of the transport network. Daily, an estimated 300 000 people pass through it: 50 000 pedestrians move through the market area, 160 000 depart in 2 000 taxis operating out of 23 ranks, 70 000 commuters board busses, and 4 500 street traders operate in the area.

Over the past years, the City has established a number of initiatives aimed at the regeneration of the CBD, each with a different portfolio but with similar goals: a sustainable city that stimulates private-sector interest while still responding to the needs of those who live, work and play in it. The Area Based Management and Development Programme (ABMDP) identified five zones of the greater Durban area, each with different strengths and weaknesses, and each requiring a unique, integrated approach involving all stakeholders. Within Durban itself, nine districts were identified: Warwick Junction, Victoria Embankment, Albert Park, Umgeni Corridor, Greater Kings Park, Umgeni Estuary, Beachfront, The Point, and the North East and Core CBD.

But, as head of the Strategic Projects Unit, Julie-May Ellingson, says: ‘There’s an undisputed link between crime and derelict buildings in the city.’ Enter the Better Buildings project. Since its inception, the ‘bad buildings’ are gradually, getting better – and fewer. As Hoosen Moolla says: ‘We have a list of buildings, a programme in place, and we are dealing with each one of them. This is a social issue created over decades, so it’s unreasonable to expect it to be resolved overnight.’

While it’s easy to point a finger at the local authority and their point of influence, 60 to 70 per cent of the buildings in the CBD are, in fact, privately owned. Only around 15 per cent of the identified ‘bad buildings’ belong to the City. By far the biggest culprits are the privately owned sectional-title blocks. Many are identified as ‘bad buildings’ because of their slide into near-unliveable conditions, criminal activities, illegal occupancy, illegal hijacking of buildings, slumlords, drug lords… the list goes on. The bulk of property owners are either investors or absentee landlords who see the buildings deteriorating, walk away, and wash their hands of them.

Andrew Schaefer of Trafalgar believes there’s a deplorable lack of applicable education of new flat owners, which is inexcusable given the number of processes – and people – they go through before the purchase takes place. New owners are very often unaware that there’s a levy to pay, and so are taken aback when two envelopes arrive: one for the bond repayment, the other for the levy. A downward spiral ensues: tenants can’t afford the levy, and the block can’t pay the rates and maintain services without that income. Without services, even those who can afford to pay refuse to do so.

The buy-to-let scenario is no better. Michele Veneruso of Soukop Properties believes the Tenancy Act is a great contributor to the degradation of buildings in the CBD. ‘If a tenant doesn’t pay his rent, the owner is often unable to pay his bond – he heads down the legal road, with no guarantee he’ll win. If he does and the sheriff serves an eviction notice, there’s no certainty the tenant will move out.’
It gets even more complex. A substantial number of buildings are exploited as workhouses by professional people for their income. Richard Dobson cites buildings raking in R80 000 a month yet still treating people inhumanely. This practice has been easy for the unscrupulous. They’re fully aware it eats up the City’s resources and time (two years is a realistic period) to prosecute them. But there is a ray of hope. The new Municipal Court, which will deal with the enforcement of bylaws, has just opened its doors.Julie-May Ellingson, says: ‘If the bylaw doesn’t stand up in court, we’ll work to get it changed. We’ll systematically close every loophole.’

More good news is Government’s Urban Development Zone (UDZ) tax-break scheme, which is attractive not only for investors’ new builds, but more importantly for the City and others busy renovating existing buildings. Aimed at urban regeneration and business-district revitalisation countrywide, this incentive has permitted owners and developers to write off building costs over certain time periods against the income of businesses in promulgated UDZ areas. This has undoubtedly stimulated investor interest, to the extent that the scheme has attracted some R1-billion worth of capital investment in the UDZ. The initial cut-off date of March 2009 has now been extended for five years.
The Municipality has released certain strategic land parcels for development and has linked with a number of investors to effectively change the face of Durban’s CBD: Kingsmead Office Park, Hoy Park and areas close to the ICC for starters. Julie-May says the City will be releasing more land for residential developments, with 20 per cent of each development being designated for social housing for those in the R3 500 to R10 000 monthly income bracket.

When it comes to collaborating with investors, the City is doing its bit, particularly through their Building Support Upgrade Programme. As Hoosen Moolla says: ‘We’re acknowledging the investments being made. Take Absa. They redid their doorstep, we did the entire block around them. That way, the financial load is shared and confidence is built. The process is far more interactive than people are aware of.’
Partnerships are crucial to the success of the vision. Sohco is a Section 21 non-profit company committed to the development of social housing in South Africa. They are currently engaged in their first inner-city revamp, Port View, a residential development in Albert Park. It’s the result of the conversion of four buildings into affordable rental residential units and ground floor commercial units. Sohco’s General Manager, Stuart Talbot, explains: ‘It is one of the first capital-restructuring grants that the National Department of Housing has made in Durban.’ Income-pegged rentals range from R800 to R2 500. Sohco will rent out the units, and manage the block. Importantly, Sohco recognises its role in terms of educating potential residents, and is committed to doing so.

Durban’s economic growth over the last few years is drawing more job-seekers into the city. Nikki Muslim of Tysons Properties says: ‘For first-time buyers, property prices are still affordable. Close proximity to work means transport or fuel costs are halved or eliminated.’ Still, the shortage of good, affordable accommodation is patent, and raising a bond is more complex than imagined.

Red-lining of buildings and areas by financial institutions is illegal, but some estate agents suggest this is effectively what is happening. Rene Gorrie at Remax Metro says: ‘There are still so many buildings that the banks aren’t financing. We don’t sell many of these as investors are reluctant to pay cash, and consider these properties a higher investment risk. At the same time, people buying-to-live cannot afford to pay cash.’ Julie-May says this undercover red-lining is illegal, and urges those who experience this to contact her department.

Of the residential-property market in the CBD, Keith Wakefield says: ‘Although the area is undergoing rejuvenation, the sales market is experiencing a similar slowdown as in the rest of the property industry, exacerbated by the effects of the National Credit Act. This is to a large extent an entry-level market. However, CBD property prices have doubled in the last three years. Today, a bachelor flat goes for between R250 000 and R350 000, a one-bedroom for R300 000 to R450 000, while two-bedroom flats fetch R400 000 to R550 000.’

The buy-to-rent investor is still king, even though increased prices make it less appealing in the short term. When it comes to letting out the unit, some estate agents are finding the pendulum is swinging the other way: from the historically weak body corporates to the overzealous, unconstitutional ones. Lucille Coetzee of Remax Metro says the biggest issue is the vetting of tenants by the body corporates. Soukop’s Michelle Veneruso agrees: ‘Some blocks won’t accept students or foreign nationals, others will only take couples if they’re married. Some even stipulate the same surname on your IDs if you are to share.’

Colleges have sprung up in the CBD and demand for student accommodation is high. While students are keen to share, landlords and body corporates are not so keen to oblige. Bachelor flats are letting for R1 800 to R2 800, one-bedroom flats from R2 000 to R3 000, and two-bedroom flats from R2 800 to R3 500.

Richard Dobson believes attitude is the pivotal issue – and that we need to change ours. For him, no other metro in South Africa has as extensive an engagement with the informal economy as Durban. Certainly in Warwick Junction (and there are other success stories in Grey Street and West Street), the City’s strategy of on-going engagement with all stakeholders is creating working partner*ships, not dictatorships. Not everybody agrees, and it would be naïve to say crime and grime are fantasies. They’re not, but, it seems, the move to eradicate them is being taken seriously.

So, is it time for us to go to town, and investigate the new Durban? It certainly seems time to walk the talk of Warwick Junction. There’s a new energy in the CBD – a fresh determination to create a City that responds to the needs of new South Africans.


http://www.thepropertymag.co.za/page...durban-cbd.asp

That is because Umhlanga offers better returns without the risks associated with crime and grime in Durban's CBD and inner city which are decaying from lack of investment and and both capital and human resource flight Umhlanga and other suburbs like Westville. That is why all of the new hotels are being built in the Umhlanga area while those in the CBD area are faced with low rates that do not justify investment and will eventually become redundant when the new Umhlanga hotels open for business. Itls like what happened when Carlton and Johannesburg Sun closed down in the CBD after new hotels were built in Sandton and Rosebank.

I would like to disagree with your points Mosi, there used to be more crime in Joburg's Northern Surburbs but investment continued and again with investment grime will be irradicated therefore the investors cannot say they won't move into the CBD because of grime as their investment will help in fighting grime and crime. By the way, there's possibility of those 2 Jozi hotel being opened in the near future.

By the way, there's possibility of those 2 Jozi hotel being opened in the near future.

Maybe in 2025 or 2030.

I would like to disagree with your points Mosi, there used to be more crime in Joburg's Northern Surburbs but investment continued and again with investment grime will be irradicated therefore the investors cannot say they won't move into the CBD because of grime as their investment will help in fighting grime and crime. By the way, there's possibility of those 2 Jozi hotel being opened in the near future.

Joburg CBD did look promising about 2 years ago but with the uncertainty in the country right now and the four hour power cuts in Johannesburg that will likely become part of daily life for the next five years, I do not share your optimistic sentiments. The CBD investments are shaky at best and certainly come off of a small base. Two sectional title hotels (Mapugubabwe and Ashanti/Dogon that can be easily reconverted into apartments if they don't pan out) won't do the trick. That said what small progress has been made in the CBD can easily be reversed by the current slump caused by Eskom power shortage and double digit inflation.