The City of Cape Town has issued the tender for the long-term lease of its Granger Bay Boulevard site which is located next to the Cape Town Stadium in Green Point. The construction value alone could be about R600m.
Recently, business rights were granted for the Cape Town Stadium and this vacant gravel site, which is used by the Stadium for overflow-parking. It is therefore expected that the development of this desirable property will be a catalyst for the commercialisation of the Stadium Precinct which holds investment and job creation benefits for the people of Cape Town. The City also wishes to enhance public use of the space.
The City will retain ownership of this property as the development and management of this property will be done in accordance with a 25-year lease.
Approximately 29,000m² of space will be allowed to be developed. A height restriction of 25m (eight storeys high) will apply. It is envisaged that a medium-rise complex of buildings incorporating parking, ground-floor retail and commercial components will be developed on the site.
‘One way to enhance the sustainability of the Stadium Precinct is by encouraging greater public usage. This tender aims to do just that as the site is located on transport routes and in close proximity to the Cape Town CBD.
‘The surrounding area is dominated by medium- to high-density mixed use properties, residential use, the tourist drawcard of the V&A Waterfront, Somerset Hospital, retail outlets and office blocks. Somerset Road, abutting the site’s southern boundary, is a hub for commercial and retail activities.
‘We have engaged extensively with the public and have looked at creative ways to make this space work for the people of Cape Town.
‘It is expected that the development of the site will create a number of construction- and sustainable new jobs, specifically with regard to building cleaning, security, landscaping services and retail,’ said the City’s Executive Deputy Mayor, Alderman Ian Neilson.
Based on the City’s in-house valuation, the market rental value of this property, comprising a gravelled parking area site of 7 385 m² in size, is estimated to be either an upfront payment of R100m (excluding VAT) or a monthly rental of R750 000 (excluding VAT.) This rental is valid for a proposed lease term of 25 years, with an escalation of 8% per annum.
All future developments on the property would need to adhere to the zoning conditions, including infrastructure requirements. A future lessee will be responsible for the development of the property, the upkeep and maintenance, and the security of the building(s) on the site.
Design guidelines have also been proposed by the City’s Spatial Planning and Urban Design Department to ensure that the proposed construction on the site provides a good visual fit with the existing buildings in the area.
An optional briefing session for interested potential tenderers will be held on 22 September 2016 in the Cape Town Civic Centre.