Western Cape Government on Partnerships to Develop Four Prime City Properties
On Wednesday 26 March 2014, the Department of Transport and Public Works hosted an Investors’ Conference with potential private sector investors, who may be interested in partnering with the province to develop four prime properties located in the City of Cape Town. The conference attracted over 120 representatives from local, national and international companies, some of whom have already responded to the Department’s request for an Expression of Interest (EOI) issued last week. Prospective investors attending the conference heard presentations on the four prime properties and their developmental potential.
These properties are (information booklet on each of the properties attached):
- Alfred Street Complex: Situated in Alfred Street in the Prestwich Precinct. Linking the Cape Town CBD and the V&A Waterfront with an estimated total of 65 000 sq.m potential bulk available.
- Helen Bowden Nurses Home Site: Situated in the Somerset Precinct. Neighbouring the V&A Waterfront and the Cape Town Stadium with an estimated total of 46 000 sq.m potential bulk available.
- Top Yard: Is a part of the Government Motor Transport Precinct. Located in the CBD, less than 500 meters from National Parliament and the Company Gardens, with an estimated total of 46 484 sq.m potential bulk available.
- Main Road Sea Point: Is the site formerly known as the old Tafelberg Remedial High School. Located at 335 Main Road, Sea Point, approximately 3.5 kilometres from the CBD, consisting of two separate erven namely 1424 and 1675. With a total site area of 1.7054 hectares.
"The Western Cape Government, through its Cape Town Central City Regeneration Programme, aims to: Unlock Cape Town's potential to becoming a city that serves the needs of all its citizens; leverage private sector investment, capacity and expertise; refurbish and achieve savings in the operation and maintenance of its portfolio; and to generate an annuity type income stream to finance provincial property development and maintenance. We are deadly earnest about investment as the imperative for economic growth and job creation. We have no more important and urgent priority. Economic growth is our foremost strategic objective. Over the last 5 years we have invested massively in the education and wellness of our people. We have eliminated local wastage, maladministration and corruption, and significantly reduced barriers to investment entry that lie within our remit. To give some idea of how the scale of investment has increased;
- In the 4 years prior to our administration, spend on new and replacement schools was R630 million. In the first four years of our watch, that has increased fourfold to R2.405 billion.
- Transport and Public Works, has invested some R16 billion in schools, health facilities, accommodation, and roads over the last 5 years.
Some major projects under way at this moment are:
- Adjudicating a tender to construct a 25000 sq.m office block within our Provincial Government precinct.
- Commencing, in partnership with the City of Cape Town, on the R850 million expansion of the Convention Centre (CTICC).
- Accessing the important Philippi industrial area by re-aligning the N2/Borchards Quarry intersection with Eisleben Road.
"We have created the conditions and the opportunities for significant private sector investment, and look to a growth partnership that accelerates the city and provincial economy, and become a beacon of hope to all South Africans," said Minister Carlisle.
"Partnerships like these play a key role in economic growth and job creation. There is no sense in government hanging on to properties that cost exorbitant amounts to maintain when we could be leasing them out for development. Doing this contributes to economic development and puts additional money in our budget for service delivery. As a provincial government, we have very little capacity to generate our own funds, with the bulk of our funds coming from the National Treasury. The initiative we are talking about today is an 'own-revenue' source which will add to our overall budget. It is innovative, forward thinking and is a 'win-win' for all involved," said Minister Winde.
"Thus our regeneration efforts will work towards stimulating local economic development, create new jobs and opportunities for employment, as well as provide access to the City’s resources and facilitate social cohesion and well-being. The process of availing these prime pieces of property will be completely transparent from beginning to end. We hope that through transparency and openness, we will be able to instil and sustain investor confidence that will underpin how the Western Cape Government continues to do business with its valued private sector partners".
"We are confident of success stemming from this initial release of property, and we hope that in the future, as the need arises and the market allows, we can make similar offers in relation to other sites owned by the Western Cape Government. Further decisions to release property in the future, as with this one, will be a carefully considered in line with our objectives and vision for the region," added Minister Carlisle.