A multi billion-rand development for CT city

The mixed-use precinct will transform a windy waste into a village.
An aerial street view of Amdec's proposed Harbour Arch development. Picture: supplied

Moneyweb initially reported that Amdec was the developer of Val de Vie estate. This is not the case. Amdec is a 30% shareholder in Val de Vie Investments, the developer of Val de Vie. Moneyweb regrets the error.

Amdec, the developer of Melrose Arch and shareholder in Val de Vie and Pearl Valley estates is to invest billions over the next five years in the development of a mixed-use precinct on the Cape Town Foreshore.

Modelled along the same lines as Melrose Arch in Johannesburg, the new development, Harbour Arch, will incorporate motor dealerships at the street level, several floors of parking, and above that retail, office space, residential apartments and two Marriott hotels.

Situated at the confluence of the N1 and N2, with close proximity to the Cape Town CBD, Harbour Arch will be built on a 5.8 hectare site and will ultimately comprise six individual towers. A landscaped pedestrian walkway on the 8th floor will run the entire length of the precinct and will connect the spaces.

While the site is not vacant – it is home to a number of motor dealerships – it is one of the last, large tracts of land available for development in the city.

The trend towards the development of residential property within Cape Town city began in 2003 with the redevelopment of the original Old Mutual head office – a magnificent art deco building – on Darling Street. “People told us we were mad and the apartments would not sell,” says Pam Golding’s Laurie Wener, who is also selling the Harbour Arch units. “They were snapped up by speculators and young professionals.”

Since then inner-city living has gained in popularity. “Five years ago you could not give away a three-bedroom apartment; today you see families choosing the city over the suburbs,” she adds.

Harbour Arch supports the vision to turn Cape Town into a 24-by-7 city, says executive mayor Patricia de Lille. To facilitate this vision the city has established a regulatory-one-stop shop to help smooth the way for investors such as Amdec.

The city has also released six hectares of land currently occupied by Cape Town’s go-nowhere bridges to developers. The only conditions are that they [the developers] set aside a portion of the land for low-cost housing and invest in solutions to assist with traffic congestion, says De Lille.

Harbour Arch is as far away from low-cost housing as one can get and unashamedly models itself on the global trend towards ‘new urban architecture’ which is redefining city living, says James Wilson, Amdec CEO. “It’s geared to allow for pedestrian traffic at all hours of day and night, and offers residents accommodation together with other lifestyle elements, all in the same location such as shops, gyms, restaurants and cocktail bars, with a huge emphasis on security.”

Obviously there is a price to pay for the convenience that comes with the lifestyle. In Hong Kong residents could pay up to R2 million per m². Number 1 Hyde Square (arguably the most desirable address in London) costs about R1.15 million per m². In the US Trump Towers costs about R550 000 per m² and accommodation in Sydney’s historic Millers Point costs about R220 000 per m². In Cape Town an apartment in the V&A Waterfront recently breached the R200 000 per m² mark, says Wilson.

Thus Harbour Arch, at between R50 000 and R70 000 per m², should be viewed as a steal.

Harbour Arch’s initial development phase – No 1 Harbour Arch – will comprise 432 apartments, two motor dealerships, retail, leisure, and commercial office space. Development kicks off in the first quarter of 2018 and will take 30 months to complete.

About R500 million worth of sales have already been concluded.

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That’s nice, but what will they use for water?

They can flush their bogs with Perrier water…..

Huh-uh, jog down to the sea carrying a 5L bottle, do that 4 times a day, that gives two flushes and it will keep you fit AND look at the enormous saving on gym fees.
Once the sewage dep. trace where the salt water comes from you’ll need to be fit to run, but hey you’re fit already from the water carrying?
Mmmm…..

And where is the water going to come from ? That is the problem all over Cape Town, new developments everywhere, but no provision is made for an increase in water consumption.

Cape Town has become Joburg-By-The-Sea…..

Permanent Traffic gridlock, murder-death-kills, gangland hits at the airport & nightclubs & hospitals, family slaughters in the winelands, rapes & murder on scenic walks, grey soulless buildings, over-development etc etc

….But without water.

more and more people queueing for water!!! crazy what the DA are doing to CT!!!!

And if it was the ANC it would look like Hillbrow…

When I noticed the heading “a billion rand development for CT” I thought…..ahhh, at last they’re happily getting their mega saltwater desalination plant.

(Heart sank when realising it’s MORE property. OK, accepted…there’s DEMAND big time. For how long this will be, will be closely watched.)

Unlike common belief, The WestCape (how much we all love it) is not isolated to the rest of the country’s socio-political problems. Crime will slowly catch up as well. The last bastion of “civilised” SA.

….”Crime will slowly catch up as well.”

The waterless hell-hole is the Gangland Capital of SA. Shootouts at the much-vauted airport this week. Followed up by a hit attempt in a private hospital. All in retaliation for a hit last week in a Syellenbosch nightclub in which a young mother-of-two was shot dead in crossfire. Blonde teen student abducted, raped and mudered in Stellenbosch earlier this year. Young teen raped, murdered in “scenic” Tokai forest last year, a few minutes after separated from her mother. Axe murders in Stellenbosch, trial ongoing. Murder trial of property tycoon afet suspevted muredr in Stellenbosch. Singaporean honeymooners attacked, man hit on head with rock this week. 18 people shot dead in one week last month in a gang-infested ‘hood only a few minutes drive away from your leafy-suburb. Ongoing shootouts and hits in the notorious Cape Town nightclub “Bouncer Wars”……the list goes on and on….

Ja, Cape Town is “slowly catching up”….

I note your point…crime in the WCape is worse compared to a decade or more ago. It is changing. But nowhere near as bad as depicted.

If I may “generalise” the appearance of streets and sidewalks are still in pristine condition (I’ve witnessed there’s more potholes located in a single street in Gauteng, NW, Freestate, than that of the whole of the WCape province.) Road surfaces are smooth. Street markings clear & freshly painted. Surrounds are kept neat and tidy by the local councils…but yes, I accept, it won’t get easier from here. Crime and grime is increasing in WCape, but if I need to list the recent crime problems in Gauteng (& others) the list will exceed this page length 😉

Just edgy of buying any real estate in the WCape right now…prices been escalating far above inflation year-on-year (almost like the 2003 – 2007 development craze in rest of SA). A cooling off must come…can’t say when. Honestly don’t know how younger, less wealthy Capetonians manage to make ends meet entering the new home market, while salaries are generally a tad lower compared to Gauteng(?)

In fairness, ” property tycoon” was only visiting for a conference, from Gauteng!

Regarding water – Dubai gets along fine without fresh water. If you have enough money, you can make a plan, build the plants.

Money and cheap reliable electricity supply.

All due respect, but Dubai doesn’t have a 30 year old speechwriter in charge of their Water resources.

Google “Xanthea Limberg”, Dame Zille/Toothless Wonder’s political appointee….

jblack, can I just remind you this is South Africa dude, not Dubai or Israel….nothing works here because….you know why not!

Jirr, what a bunch of negative people here !

Will it make you feel better if the there is no development ?

If the development offends you, please do stay in Hoopstad / Bultfontein / Loxton and take the donkey cart to the Kerkbazaar.

Let’s see how you feel about development and semigrants when you are queueing up in March to collect your 25 litres of water along with the unwashed masses, boet.

Read the article carefully, boet. The development is planned for the next five years, not March 2018. The water shortage is the result of various factors, including, but not limited to, global warming, insufficient long term contingency planning by the City of Cape Town, semigration etc. etc. To argue that this development is the reason for the water shortage, is simplistic and ridiculous. These developments create employment for a city that desperately needs it. If you die of hunger / malnutrition due to unemployment, you won’t even make it to the water queue.

Where did I say the Cape Town Water Disaster is due to this development, boet?

This so-called development is a symptom of Greed, on the part of developers & especially DA-led City of Cape Town (think of all those rates they will get their greedy paws on).

Wake up boet.

I agree with you, rfjock, greed greed greed but the water issue still biggest problem.

…and the Stormers Rugby remains one of the best 😉

Love your comment Danie. People are pretty shortsighted. So there’s a water problem now. Must the whole world grind to a halt every time there’s a problem, then nothing will ever get done

You sound like the dude who was polishing the ship’s compass on the Titanic at 2:00am……

If you listen to people talk about apartheid in 2017 you might be left thinking the country was a war zone, when in fact, a lot of people got along just fine, despite it’s underlying ‘difficulties’

The water situation is just hilarious, with a tinge on irony, because Cape Town is by the ocean, embarrassing more than anything, but like most things, it will pass.
That said, the Western Cape is the closest thing to a European country in Africa, so its development will continue for as long as there’s demand, no such thing as over-development, in fact, many people are betting on the fact that, in the event of a total collapse of S.A inc. W.C is the one province that will be able to sustain itself.
My concern is maybe that, at some point, too many things become out-of-reach for the average person as it increasingly becomes a place for the rich.

Nah, they can pipe water from Nkandla.

For the record, Sentinel Retirement Fund ( Mine Officials Pension Fund ) created Melrose Arch and built phase 1. The development was sold to Amdec in 2005.
Hope Amdec are going to widen roads and improve access to the site before any construction starts ( the MOPF spent R30mn widening Corlett Drive & Atholl Oaklands Road & built a new on ramp to the M3 ).

Amdec should be in touch with Graham Wilson at Osmond Lange Architects (Melrose Arch lead Architects & Town Planners with the UK expert Paul Murrain ) before they charge onto the site !

Water is a temporary problem.. not sure why the entire comments section is about that.

There are two fundamental issues with this project:

1. Traffic – How will they be able to help reduce traffic, it has been tried, the best of the best civil engineers consulting firms have presented plans and all of them were either extremely expensive or only a quick fix.

2. Low cost housing – Unfortunately nothing close to Cape Town CBD will be low cost, might be for the original buyer but after that the normal economy would take over and people will be clearing their entire bank accounts to buy a single bedroom apartment.

Cape Town should invest more in voortrekker street, woodstock etc..

Most of the negative comments are from Joburg people that can not sell a 4 bedroom house with a lapa on a big plot for R3.5 million. But lets focus on the development: the selling prices upmarket apartments in CT are close to R40k/sqr currently, which is high already….selling at R50k-R70k/sqr is simply out of touch to what people earn and the uplift from these levels are irreconcilable with the economic outlook.
The comparison to the previous development,the yacht club, is not a good one as it is located in the Waterfront which has its own price structure. That side of Cape Town is very windy and there is no restaurants and bars yet. Your rental yield will be between 3-4% to start off with. An investor will need to have a 10 year outlook on return.

This development is planned for the next five years which some say that the water crisis will be over by then…in fact, its the other way round…it is going to get a lot worse.

Madam Zille has admitted that even with full dams after a wet winter, it will still not be enough to feed the city over the warmer month. And that is at the current population figure and does not take into account the explosive growth that will take the population from 3.5 million today to have 6 million in ten years time. Where will there water come from seeing that the DA run council loathes to spend any money on long term projects to increase capacity.

End of comments.

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