The new multi-billion-rand Oxford Parks property development precinct in burgeoning Rosebank is set to be home to Joburg’s first Radisson Red hotel.
Executives from Radisson Hotel Group and Intaprop, the unlisted developer driving the 350 000 m2 Oxford Parks project, announced on Tuesday that a R385 million hotel will add to the appeal of the mixed-use development.
Oxford Parks – located a stone’s throw from Old Mutual’s The Zone @ Rosebank shopping centre and Investec Property’s Hyatt Hotel and Firs complex – effectively extends the Rosebank CBD northwards. The R1.2 billion first phase of Oxford Parks is currently underway and brings 34 000 m2 of GLA (gross lettable area) in office, retail and hospitality space to the market.
Speaking at the announcement, Radisson’s Sub-Saharan Africa development boss Andrew McLachlan said that trendy Rosebank and its developing Oxford Parks mixed-use precinct is the ideal location for the new 222-room Radisson Red hotel.
“Rosebank is an important and vibrant location that we have been looking at for some time,” he told Moneyweb. “Other major international hotel chains were vying for this opportunity and we are happy to have been chosen to operate the hotel planned for Oxford Parks, which is an exciting new area of Rosebank.”
“Radisson Hotel Group already has three hotels in Joburg, all of which are in Sandton under our Radisson Blu and Park Inn brands,” he adds. “We believe our new Radisson Red lifestyle hotel brand will work well in Rosebank, with it being a hip and arty node. The group opened its first Radisson Red hotel in the world at Cape Town’s V&A Waterfront two years ago. This will be our first Radisson Red in the Joburg market.”
Intaprop CEO André Gouws tells Moneyweb that the hotel is an important component in the mix at the precinct.
He says the hotel forms part of the first phase of the development, which includes four buildings. “Three are office buildings, while the hotel will bring in a great hospitality offering. One building has already been completed and is home to BP South Africa’s head office. The other buildings, as part of phase one of the bigger development, are currently under construction and will become home to Life Healthcare Group, Thebe Investment Corporation, Arup Group, Metier, Credo Wealth and Sony.”
Gouws notes that phase one is fully let, with construction in phase two, also valued at around R1.2 billion, set to commence next year. Intaprop is the developer of Oxford Parks and owns 65%, while private equity firm RMB Corvest owns 35%.
“Oxford Parks will be between 300 000 m2 and 350 000 m2 once fully developed over a number of years. All buildings within the overall development will be designed to meet a minimum four-star Green Star rating from the Green Building Council of SA,” he says. “We have some exciting residential building developments in the pipeline and will be partnering with residential developers to deliver these to market.”
Botswana Stock Exchange-listed RDC Properties, which is led by property magnate Guido Giachetti, is the investor in the hotel.
“As foreign investors based in the SADC [Southern African Development Community] region we are pleased to contribute to the growth of this magnificent country through capital inflow and employment creation,” he said.