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Atterbury’s R6bn mega property project breaks ground in Pretoria

Watch a clip of what the development, east of the city centre, is planned to look like.

Atterbury Property Fund, the unlisted venture of Pretoria-based property investment and development heavyweight Atterbury, has commenced construction on a R6-billion mega project in the capital city.

The 200 000m2 Castle Gate mixed-use precinct is being co-developed with original landowner The Carl Erasmus Trust and was launched by Tshwane Mayor Stevens Mokgalapa on Thursday.

Located on Solomon Mahlangu Drive, east of the Pretoria CBD, the first phase of the precinct will include a 23 000m2 convenience retail centre. Other developments over its five- to ten-year development roll-out include 100 000m2 of office space, 40 000m2 of specialist medical facilities, a hotel and around 1 100 residential units.

Atterbury development manager on the project, Raoul de Villiers, says Atterbury Property Fund is excited to be launching its biggest mixed-use development yet in Pretoria. Atterbury Property Fund is co-owned by Atterbury’s management and founders, together with empowerment partners Talis Investment Partners.

“This is a major development for us and highlights our commitment to South Africa and Pretoria, where the Atterbury growth story began 25 years ago,” he says. “In fact, our very first development as Atterbury was just a few offramps from here.”

De Villiers says Atterbury co-founder and noted property dealmaker Louis van der Watt secured the land from The Carl Erasmus Trust back in 2016. “He saw the potential in this prime 64-hectare property and we have been working on plans since then. We are thrilled to be launching a modern large-scale development that has the support of the City of Tshwane and the local community.”

He adds: “Property is a long-term investment. For successful property development and investment, it is necessary to look through the short-term cycles and take a long-term view. We are confident in the future of South Africa and the capital city.”

Read: Consolidation on the cards for listed property players

Mayor Mokgalapa says he and the city endorse the massive development.

“With R6 billion being invested into Castle Gate over the next few years, it is certain to bring significant socio-economic benefits for the City of Tshwane. We want to create an environment conducive to attracting private sector investment such as this, which is also in line with the metro’s special development framework.”

Mokgalapa says that following the city’s recent economic summit, a pipeline of some R10 billion in property development is anticipated to come on line over the next two years. “The city has set up a committee to help fast-track developments such as this,” he adds.

“We want to move from a situation of red tape to rolling out the red carpet to attract more private sector investment into the city.”

Talis, which was founded by property entrepreneur Tebogo Mogashoa, became a 30% shareholder of Atterbury Property Fund late last year, following a black empowerment deal for an undisclosed amount. Mogashoa now chairs the fund, which is also the key driver behind the R2-billion Jewel City urban renewal development in the Joburg CBD.

Read: FNB’s R100m Joburg CBD head office revamp

“I don’t believe the downward economic trend [in SA] will persist,” Mogashoa told guests at the Castle Gate launch.

Moving forward

“It is up to us to create positive momentum. This development is a testament to us building a future for all South Africans,” he says.

“We need to stop complaining and become part of the solution to take South Africa forward. It is great to be working with Atterbury, which shares a common commitment to growing the economy as well as to meaningful transformation.”

Construction on the first phase of the development is already underway, with the 23 000m2 Castle Gate Lifestyle Centre set to open next year.

The convenience shopping centre will include retail space, medical consulting rooms, offices and a Planet Fitness Gym.

Major retail and restaurant brands already signed on as tenants include Woolworths, Checkers, Dis-Chem, Builders Warehouse, RocoMamas, Doppio Zero, Spur, Ocean Basket, Nando’s and Burger King.

Watch a short video clip of artists’ impressions of the development:

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Yes SA needs more shopping centers, how did I not think of that brilliant idea?

Well, I thank you for upgrading Solomon Mahlangu Drive and RvR Drive soon, and for securing a piece of ground that vagrants stayed in and was a hotbed for crime in the surrounding area. Oh no, it won’t you, it will be Atterbury.

Oh wow, Atterbury now in community policing?

and running a potholes filling team across Pretoria?

But hey them diluting the market in Pretoria now will be appreciated far beyond Solomon Mahlangu Drive I am sure. Oh a boon for many other such brilliant developers I am sure!

Cheap advertising from developers with shining prospectus claiming wealth creation. try rather just plain rent seekers.

Great to see some companies still positive about SA. Much better to just sit and complain…
All the best Atterbury 0 how this project is successful.

I so agree with you TO2. Easy to complain and do nothing then when something positive happens they just keep quiet. If the project fails they say I told you so.
If things are negative do something about it.
1/ Get out of the country.
2/ Or roll up your shirt and do something about it.

In US Dollar terms, property prices have fallen by maybe 30-40 per cent over the last 10 years. Go figure!

Drug dealer, money launderer, extortionist, tender fraudster, mashatile bag-man….

What has this statement got to do with the story OR are you making accusations. If so be careful.

These guys have gutts, the fact they want to invest that big amount in SA.They have done their homework.
This is like if you invest money for 5 years fixed at the bank.They guarantee you the same rent for 5 years.Doesnt matter what the world economy does.Its like some people can predict the future.

Who is funding this? Any PIC involvement or Tshwane tax payer money? Come on Moneyweb!

Soon to appear on their balance sheet at 9.25 billion after 250,000,000 in management fees

Do i smell another Sharemax scenario ala shopping centre on Zambezi drive.
Usa world leaders are ”repurposing” shopping centres but our geniuses/opportunists are building- have’nt they heard of the rise of online shopping.
Go have a look at the Mall of Africa and Cradlestone Mall – empty.

The funding is apparently not syndication, thus not Sharemax-scenario. However, others have already commented with questions on where R6 billion is coming from. Watching this one with keen interest: Atterbury and the like far better and real money than Sharemax, but this is another huge one, like Sharemax’s death tomb, The Village, which was just too ambitious.

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