30 / 11 / 2006
The recent upsurge in the demand for A-grade office space throughout the Western Cape's northern suburbs, and particularly at the new Tyger Valley Waterfront, has prompted developers to proceed with their plans for a mixed use development called The Cliffs. It is already selling fast.
There are three tower buildings in "The Cliffs" and they are linked by a five level parking garage for 510 vehicles. The first building, an eleven storey complex, is made up of 91 apartments, all of which have been sold.
This section of "The Cliffs" cantilevers over the waterbody and requires piles augured into the rock floor of the lake. This work, says Theron, was done by a Durban based geotechnical construction company and has proved far more challenging than originally anticipated. "We are," he says, "very excited about the work and the fact that this design aspect will enhance the feeling of being close to the water."
This process is now complete and the main contractor, Rémey Construction from Stellenbosch, can begin work on the structure and the apartments will be ready by the end of 2007.
Phase II of the project consists of a nine storey office block on which work commenced in June earlier this year and Rémey Construction is well ahead of schedule. This building will be ready for occupation by the end of May 2007. Here a sales effort started earlier this year and has already resulted in over 80% of the 4 050sq m being sold. The units in Phase II vary in size from 125sq m to 410sq m.
Prices have been positioned at between R10 750 and R11 500 per sq m (exclusive of VAT, parking and balconies), which, says Pieter-Jozua Erasmus of Capitol Commercial Properties, is very much in line with similar quality space now coming on the market in Tyger Valley and at Century City.
John Wallander, a manager at Nedbank Corporate Property Finance's northern suburbs branch, which has arranged finance for the R230m project, says that this must be one of the better property investments in the northern suburbs today as it is located on a 4,5ha waterbody and situated in an area where further available land for development is virtually non-existent. The building is, he adds, well designed and the specification levels of the communal areas are of an exceptionally high quality. "Before long," said Wallander, "the values and rentals here will move up fast because Tyger Valley has become the heart of the northern suburb's retail and offices nodes. Escalating construction costs and the non-availability of developable land, the gross rental in new A-grade office developments is likely to rise to R110 per square meter plus VAT".
Jacques Theron of Omnicron Commercial Properties says that the parking bays are particularly well priced. The bays in the undercover parking garages sell at R52,500 plus VAT. Office occupants at The Cliffs are entitled to purchase an average of 4,3 bays per 100sq m of office space and there are 38 free visitors' bays in the building.
The Tyger Valley Waterfront has quick direct access to the N1, via Carl Cronje, Bill Bezuidenhout and Old Oak Roads. Carl Cronje Drive will in the future also provide access onto the N1 highway via a half diamond interchange leading to- and from Cape Town.
For more information contact Pieter-Jozua Erasmus 082 853 9358.
Article courtesy of The Property Magazine