Growthpoint Properties Limited and Rabie Property Group have announced they will develop a premium office building, Bridge Park, in a new precinct at Century City in Cape Town, with the potential for a total 100,000sqm of development. This powerful joint venture will develop the new 18,049 sqm office building for a total investment of R423 million.
It is the first building in the new precinct on the N1/Ratanga Corridor of Century City that Growthpoint and Rabie will develop together. The prime commercial property will be developed in two phases, with the first phase spanning 9,911 sqm of premium office space which will be complete in February 2015. It will feature a parking ratio of 3.5 bays to 100sqm of offices and is designed to Green Building Council of South Africa 5-Star Green Star SA rating standards. It is envisaged that the entire precinct will be green rated.
Growthpoint is the largest South African REIT and a JSE ALSI Top 40 Index company. It owns and manages 393 properties in South Africa, 44 properties in Australia through its investment in Growthpoint Properties Australia and a 50% interest in the properties at V&A Waterfront, Cape Town. Growthpoint’s South African office portfolio comprises 120 properties covering around 1,2 million square metres of thriving office space valued at R16,3 billion.
This is Growthpoint’s third major office property investment at the landmark Century City mixed-use development. Growthpoint first acquired the 11,000sqm BCX building and then five prime office buildings offering some 11,400sqm of office space in The Estuaries Office Park. Rudolf Pienaar, Growthpoint Properties Office Divisional Director, says that Century City is one of the best performing office nodes in South Africa and Growthpoint’s increased exposure to this fast-growing node furthers its investment strategy.
“Vacancies at Century City are substantially lower than the national average for office vacancies. Thanks to good demand levels, it has shown some consistent rental growth in a tough market,” says Pienaar. He adds the new Century City office development will strengthen Growthpoint’s office portfolio with top quality assets. It will also balance its investment spread in the Western Cape office market. This includes Growthpoint’s 50% stake in the offices of the V&A Waterfront as well as several landmark buildings in the city.
“Rabie has a phenomenal track record and we’re pleased to partner with them,” says Norbert Sasse CEO of Growthpoint.
“The success of their Century City developments shows the superior investment property assets they deliver,” adds Sasse.
Read more about Bridge Park at Century City.