New R1.2 billion development coming to Cape Town

A new R1.2 billion mixed-use development is set to launch in Cape Town following a successful lease auction of prime land.

The site for the development next to the Cape Town International Convention Centre (CTICC), and will include lifestyle, retail, and office space, as well as a hotel.

The winning bid offer came from Afrirent Holdings, an investment company with interest in logistics, energy, leisure and gaming. In October, the group acquired a majority stake in High Street Auctions, which hosted the auction.

Ahead of the auction, the city stated that it anticipated R1 billion worth of investment going into the site, which carries a 99-year lease agreement for a 25,000 square metre development block in the city’s Foreshore district.

“The auction is a key part of the Economic Growth Directorate’s strategy to leverage City-owned land in ways that stimulate private sector investment, create jobs, and foster long-term growth,” said James Vos, Mayoral Committee Member for Economic Growth.

“It’s a project I believe will invigorate our economy, draw in visitors, and contribute significantly to Cape Town’s role as a leading global destination for both business and tourism.”

The city said that the project will boost the local economy, create jobs in construction and hospitality, boost tourism, and secure future revenue.

The property, on portions of Erf 270 and Erf 192 Roggebaai, is zoned for General Business and Transport, supporting the city’s vision for a multi-purpose hub in the CBD.

Following Mayoral Committee approval this week, City Council will now be asked to give final approval to the granting of a potential 99-year lease term to the successful bidder, worth approximately R1.6 million per month for public coffers, which can in turn be reinvested in services and infrastructure across the metro.

“Through this project, we’re paving the way for sustainable, long-term growth that keeps Cape Town competitive on the global stage. This project is part of our larger goal to expand Cape Town’s economy and strengthen its tourism appeal.

“I’m confident that this development will become a landmark addition to our CBD and complement the CTICC’s operations. We expect the development to attract local and international visitors, creating vibrant spaces, and bolstering our economy,” Vos said.

Planning for the project will now begin, pending final approval by council in December.

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