Growthpoint Properties Limited and Rabie Property Group will develop the first premium office building in a new precinct, a 17,262sqm office building, with the potential for 150,000sqm of development. It is the first building in the new precinct on the N1/Ratanga Corridor of Century City that they will develop together.
The property will be developed in two phases, with the first phase spanning 9,363sqm of office space, which will be complete early 2015. It will feature a parking ratio of 3.5 bays per 100sqm of offices on site while additional bays will be available in the adjacent public parking facility to meet potential higher demand. The new Mycity bus service is due to commence its operation throughout Century City from November 2013. The building is also designed to Green Building Council of South Africa 5-Star Green Star SA rating standards.
This is Growthpoint's third major office property investment at the Century City mixed-use development. It 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 the company's increased exposure to this fast-growing node furthers its investment strategy.
"Vacancies 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 office development will strengthen the company's office portfolio with top quality assets. It will also balance its investment spread in the Western Cape office market. This includes its 50% stake in the offices of the V&A Waterfront and several landmark buildings in the city.
David Stoll, Growthpoint Western Cape regional manager, explains office property in the region is showing strong performance. "The company's office vacancies are a low 4.08%."
Colin Anderson, director Rabie Property Group, adds, "We are very excited to partner with Growthpoint Properties on this new development as it shows confidence in Century City as a premier development node."
"Rabie has a phenomenal track record and we're pleased to partner with them," says Norbert Sasse CEO of Growthpoint. "The success of its Century City developments shows the superior investment property assets it delivers."
