Urban Property Fund to create mixed-use inner city precincts

DIVERSITY Urban Property Fund, a new fund whose strategy is to create thriving mixed-use inner city precincts, is set to invest R2 billion in Johannesburg, largely to create about 2 600 affordable apartments.

It plans to achieve this through the redevelopment of the iconic Absa Towers main building and Jewel City and the construction of three new apartment buildings close to Jewel City.

The fund has been established by Atterbury Property Fund and residential rental management company Ithemba Property, with RMB Holdings and Nedbank to become investors in the fund once Competition Commission approval has been obtained.

Talis Property Fund, which has a 30 percent shareholding in Atterbury Property Fund, played a major part in the establishment of Diversity.

Tebogo Mogashoa, the chairperson of Talis and Atterbury Property Fund, said yesterday the fund would be investing in cities to create affordable housing for the people to bring them closer to their places of work and develop functional neighbourhoods that supported the day-to-day living of the masses.

“We believe that affordable housing is really the cornerstone of the economic revival of our country at a time when the country is battling.

“We have committed to spend R2bn in this financial year on developments that cover residential, office and retail and have a pipeline that we have already secured that will culminate in a R4bn investment in the inner city, mostly of Johannesburg,” he said.

Mogashoa said 45 percent of the 2 600 new affordable apartments that would be built would cost R3 000 a month and below in rental, which reflected the nature of the economy and the realities of the people and their affordability levels. He said these developments would expand the tax base of the city, because they involved derelict buildings or buildings that did not contribute financially to the city.

Diversity acquired the 30-storey Absa Towers main building from Absa, subject to the approval of the Competition Commission, to redevelop it into a mixed use building comprising 10 000m² of offices on nine floors that would be leased back to Absa, 520 affordable rental apartments and other amenities.

Jewel City, located between Absa Towers main and Maboneng and spanning six city blocks, was acquired from listed Redefine Properties and would be redeveloped into a vibrant mixed-use precinct with a pedestrianised street.

The project includes the redevelopment of existing buildings plus the construction of 40 000m² of new buildings in the precinct.