South Africa is set to invest a whooping US $136m to redevelop two major projects; the Absa Towers Main building and Jewel city as part of the country’s strategy to create thriving mixed-use inner city precincts in Johannesburg, South Africa.
According to Herman Mashaba, Mayor of Johannesburg, the fund which is being granted by the Diversity Urban Property fund will be the largest investment into the Johannesburg central business district for a number of years.
He further explained that the national and provincial budget lack resources to to execute such projects on its own hence the reason to involve public-private partnerships describing them as an integral to boosting development, over and above the city’s current project plans for 84 buildings.
“The city’s support for Diversity will not be exclusive – it should be a case study for further developments, proving to other investors and developers that the city is open for business. These projects are a practical way of boosting our economy – not another talk shop or conference.” he added.
Absa development project
The 30storey Absa development project which is currently unoccupied will be redeveloped into a unique mixed-use building for South Africa, including 520 affordably priced residential rental apartments, a floor of coffee shops, restaurants and recreational areas, retail, child care facilities, a public park and integrated public transport facilities.
It will also be leasing back nine floors with 10 000 m2 of office space in the redeveloped building. Once completed, the development will be valued at over US $27m.
Jewel City development project
Jewel city project will reopen to the public as a mixed-use precinct with a fully pedestrianized streets cape and a total development value of over US $82m once fully completed.
The project includes the redevelopment of existing buildings as well as the construction of over 40 000 m2 of new buildings in the precinct. The rejuvenated jewel city will include an abundance of amenities such as a school, clinic, gym, parking and convenience retail, as well as fast food and other restaurant.
It will also include 20 000 m2 of commercial space, 1 200 new residential apartments in Phase 1 and up to 1 000 in Phase 2. Work on the Jewel City Project is set to begin in November. In the next 18 months alone, with these two projects, as well a US$27m s of residential accommodation under development in Maboneng, Diversity will launch more than 75 000 m2 of new residential space in Johannesburg– more than 2 500 apartments in total.
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