Property developer Alfonso Botha returns to the inner city
Property developer Alfonso Botha is returning to the inner city of Johannesburg as he looks to offer apartments for rent at rates that offer better value than those in newer business nodes. He has redeveloped The Franklin, an apartment hotel building that straddles Newtown and the inner city. The aim with corporate conversions and refurbishments is to create a “functioning, liveable city in the mould of New York”.
What brings you back to property in the inner city?
My passion for the city and the vision I hold for its future, as well as the robust future investment potential of the CBD.
Why are you going back to the inner city now — is the market primed to improve?
This is the best time — since I started developing in the city 13 years ago — for capital appreciation of properties in the CBD.
Is The Franklin your premium asset — can you replicate its success elsewhere in the inner city?
Yes, at the moment The Franklin is my premium asset. It has been a very successful project. The formula can definitely be replicated elsewhere in the city. We are in the throes of planning a highend hotel in the CBD not far from The Franklin.
Are you in support of mayor Herman Mashaba’s multibillion-rand roll-out of tenders to bring affordable housing to the city, or is it just political talk?
Yes, very much so. I think a point has been reached where talk has started turning into action which I see as a very positive sign. The multimillionrand retail development at FNB Bank City which is bringing a number of popular food and coffee chains to the inner city and various lifestyle options is a huge vote of confidence from the private sector.
How many projects do you have on the go in the inner city — what are the main ones?
We have three major projects on the go, with my focus on the Diagonal Street precinct and The Gardees arcade. We are working on bringing in a new, more sophisticated tenant mix consisting of a coffee roastery and coffee shop, barber shop, whiskey bar and possibly a small brewery, all with the view to providing entertainment and lifestyle options for guests and tenants at The Franklin, as well as for FNB Bank City staff. We will also be opening a destination restaurant at The Franklin which will be a game changer in terms of our shortterm rental offering.
Do people see the inner city as a homogeneous place?
No. The CBD area is very large and very dense, stretching from Hillbrow to Newtown and Berea until Marshalltown. The CBD area needs to be divided into smaller “suburbs” and rebranded accordingly. The media reports should focus on the specific area under question. New York faced a similar dilemma in the 70s and new precincts such as Tribeca have been promoted to deal with the problem of generalisations ... These areas will develop a new identity, for example an art district and financial district.
Does The Franklin mainly consist of rental apartments or are you selling apartments? Who is the target audience?
For our long-term tenants our target market is young professionals working in the city wanting to avoid long commutes. For our short-term rentals it is varied, comprising local business travellers and consultants for the big corporate banks in the city, tourists, as well as locals wanting a luxurious place to stay while they play in the city. Our shortterm stays are priced at about R1,000 a night.