City of Joburg executive mayor Clr Herman Mashaba announced the city’s support for the Divercity Urban Property Fund’s investment of R20-billion in Johannesburg as part of its strategy to create thriving mixed-use inner-city precincts.
The investment will be focused on the redevelopment of the Absa Towers Main building and Jewel City.
“Newly launched Divercity is an investment fund backed by the experience of some of South Africa’s leading property investors and developers. It is set to renew and re-energise the country’s urban centres with its unique focus on inner-city precinct development that combines commercial buildings with affordable residential space to create inclusive and diverse neighbourhoods. Its strong business case is also transformative in a uniquely South African sense,” said Mashaba.
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He said the investment is an indication of investors’ confidence in the potential held in the inner city.
He said following a bidding process, Divercity acquired the 30-storey Absa Towers Main building from Absa, conditional on approvals from the Competition Commission.
“The currently unoccupied building will be redeveloped into a one-of-a-kind mixed-use building, including 520 affordably priced residential rental apartments, a floor with coffee shops, restaurants and recreation space, child care facilities, a public park, integrated public transport facilities and a wealth of public art. Absa will also be leasing back nine floors with 10 000sqm of office space in the redeveloped building. Once completed, the development will be valued at over R400-million,’ Mashaba said.
The project will commence in early 2019, with Absa expected to reoccupy the towers early in 2020.
The 20 floors dedicated to residential accommodation and recreation will be launched in various phases.
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“As part of a wider neighbourhood development initiative, a pedestrian-friendly walkway with street furniture, lighting and art will be created from Absa Towers Main all the way to Maboneng. This unique urban intervention prioritises pedestrians and people of the local community above vehicular traffic. Between Absa Tower Main and Maboneng is Jewel City, the former heart of the diamond and precious metals trade in Johannesburg, which spans six city blocks that have been closed off to the public for decades.
“Through Diversity, Jewel City will reopen to the public as a vibrant mixed-use precinct with a fully pedestrianised streetscape and a total development value of over R1.2-b once fully completed. The project includes the redevelopment of existing buildings as well as the construction of over 40 000sqm of new buildings in the precinct.
“The rejuvenated Jewel City will include amenities such as a school, clinic, gym, parking and convenience retail as well as fast food and restaurants. It will also include 20 000sqm of commercial space, 1 200 new residential apartments in phase one and up to 1 000 in phase two. The pedestrian-friendly walkway between Absa Tower Main and Maboneng will pass directly through it,” said Mashaba.
Work on the Jewel City project will begin in November with the first phase of retail, commercial and residential space set to be ready by August 2019.
As part of the city’s own initiative, council approved the release of 71 buildings earmarked for the regeneration of the inner city.
The development of these buildings is set to take place through public-private partnerships with developers within the city.
These buildings are expected to deliver at least 4 000 units for student accommodation, small business premises and affordable accommodation for some of our poorest residents.
“We believe through the redevelopment of our 84 properties, almost 5 000 temporary jobs will be created during the construction phase. These 84 properties have been available to potential investors and this will be available for interested parties to respond to until November 30 this year,” said Mashaba.
