Cape Town’s Economic Growth Directorate is set to auction a lease for the development rights of the Foreshore Tower site, adjacent to the Cape Town International Convention Centre, on March 14, 2024. The prime location is expected to stimulate economic growth and job creation. The site’s optimal use is perceived to be mixed-use typologies, with the primary allowable uses including a multi-story office, hotel, and recreational facilities, among others. The auction represents an invitation to be a part of Cape Town’s past, present, and future, offering an enticing opportunity for commercial property development.
Stimulating Cape Town’s Economy: CBD Property Lease Auction on the Horizon. The Economic Growth Directorate in Cape Town is preparing to auction a lease for the development rights of the Foreshore Tower site, adjacent to the Cape Town International Convention Centre. Scheduled for March 14, 2024, this auction will take place both in-person and online. The site’s optimal use is perceived to be mixed-use typologies, with the primary allowable uses including a multi-story office, hotel, and recreational facilities among others.
In an attempt to stimulate economic growth and job creation, Cape Town’s Economic Growth Directorate is preparing to auction a lease for the development rights of the Foreshore Tower site. This prime location, adjacent to the Cape Town International Convention Centre, is expected to trigger economic expansion. Simultaneously, it offers breathtaking views of Table Bay Harbour.
The Forthcoming Lease Auction: A Comprehensive Look
Scheduled for 14 March 2024, this auction for the lease of development rights will take place both in-person and online. Currently unoccupied, the site is located at the intersection of Heerengracht and FW de Klerk Boulevard, on a part of Erf 270, which is zoned for General Business. The site’s usable bulk rights are estimated to be around 25,000m2, with the remaining bulk rights subject to further exploration by the successful bidder through a formal planning process. The Remainder Erf 192 Roggebaai is reserved for potential excess parking.
The Economic Growth Directorate in Cape Town is dedicated to incorporating the City’s immovable property asset portfolio into our economic recovery strategy. Consequently, we are reassessing the City’s business systems from an ‘Ease of Doing Business’ perspective, utilizing intelligent real estate services to maximize social and economic returns from City assets.
Economic Boost through Strategic Development
The strategic location of the Foreshore Tower site offers an enticing opportunity for commercial property development. By making the site available for development, the City intends to lure substantial private property developer investment to construct the Foreshore Tower and related amenities. This will catalyze economic growth, generate income, and create job opportunities across the city.
The optimal use of the site is perceived to be mixed-use typologies, given the demand and the primary allowable uses – a multi-story office, hotel, and recreational facilities among others. However, the City does not dictate the use provided it abides by zoning and development rights and enhances the existing operations at the Cape Town International Convention Centre (CTICC).
Envisioning a tailor-made development, we are offering a 99-year lease to provide a return on investment for potential developers. This timeframe is also sufficient for the City to generate revenue for Cape Town’s service provision.
Welcoming Domestic and Global Investors
The decision to auction the lease within a competitive process enables the City to draw a broad range of bidders, both locally and globally. Those interested in undertaking such a significant investment venture with the City are urged to participate.
Investment in the development of this property is predicted to significantly bolster the City’s economy. The anticipated socio-economic impacts will add to the Metro’s GDP, generate job opportunities, and provide a productive asset in perpetuity. This unique development will further boost CTICC’s offerings, attracting more international conferences, strengthening the City’s fiscus, and helping to alleviate unemployment.
Project Rationalization
The planned development of the site was conceptualized when the City initiated a feasibility study for the development of Erf 270, concurrent with the planning for the CTICC 2 expansion around 2014. It was during this time that the potential for the Foreshore Tower development was recognized.
In accordance with regulations and policies that govern public land, it was concluded that the subject property was not required for municipal basic services. Given the property’s highest and best use, a development partner was deemed suitable to actualize a development of this nature. The Foreshore Tower will be structurally and operationally integrated with CTICC 2.
This opportunity has been timed to take advantage of the post-Covid-19 CBD revival. The Central City Improvement District stated in their 2022 State of Cape Town Central City report that commercial landlords effectively countered the work-from-home trend by creating more tactile and interactive office environments, enticing tenants back to the workplace. Together with the construction sector regaining its pre-Covid-19 momentum, the 2022 report suggests that the total value of property developments in the CBD amounted to a conservative estimate of R3,6 billion.
In summary, this strategic auction represents more than just a lease opportunity; it’s an invitation to be a part of Cape Town’s past, present, and future. With its potential for job creation, economic growth, and revenue generation, the auction of the Foreshore Tower site marks a significant landmark in Cape Town’s journey towards economic recovery and development.
1. What is the Foreshore Tower site lease auction?
The Foreshore Tower site lease auction is an opportunity offered by Cape Town’s Economic Growth Directorate for the development rights of the Foreshore Tower site, adjacent to the Cape Town International Convention Centre, on March 14, 2024, with the primary allowable uses including a multi-story office, hotel, and recreational facilities, among others.
2. When will the lease auction take place?
The lease auction for the Foreshore Tower site is scheduled for March 14, 2024, and will take place both in-person and online.
3. What is the optimal use of the Foreshore Tower site?
The optimal use of the Foreshore Tower site is perceived to be mixed-use typologies, with the primary allowable uses including a multi-story office, hotel, and recreational facilities, among others. The City does not dictate the use of the site provided it abides by zoning and development rights and enhances the existing operations at the Cape Town International Convention Centre (CTICC).
4. Who can participate in the lease auction?
The City intends to draw a broad range of bidders, both locally and globally, interested in undertaking such a significant investment venture with the City. Anyone interested in the development of the property is encouraged to participate.
5. What are the expected socio-economic impacts of the auction?
Investment in the development of this property is predicted to significantly bolster the City’s economy. The anticipated socio-economic impacts will add to the Metro’s GDP, generate job opportunities, and provide a productive asset in perpetuity.
6. When was the planned development of the site conceptualized?
The planned development of the site was conceptualized when the City initiated a feasibility study for the development of Erf 270, concurrent with the planning for the CTICC 2 expansion around 2014. It was during this time that the potential for the Foreshore Tower development was recognized.
