Menlyn Maine receives upgrade
Three new A-grade office buildings to be built in Pretoria mixed-use precinct
ABOUT R750 million is to be invested in a trio of new A-grade office buildings in Menlyn Maine, the mixed-used precinct in Pretoria East into which an estimated R8 billion will be invested once it is fully developed.
The development of the precinct is being driven by Menlyn Maine Investments, with more than R1bn already invested in four office buildings on the site east of the Menlyn Park Shopping Centre.
Henk Boogertman, the managing director of Menlyn Maine Developments and the chief architect for the precinct, said the three new buildings would provide an additional 26 500m of new office space between the end of next year and end of 2016.
Construction on the R405m 13 500m2 West Tower Office Block, which is part of the R1.5bn central square project and at the heart of Menlyn Maine’s future retail and entertainment epicentre, commenced a year ago.
Located at the corner of Aramist Avenue and Dallas Road, this A-grade nine-storey office tower has been designed to create flexible space for corporate headquarters or a multifaceted business environment.
It will be ready for tenant occupation in September 2016.
The R285m Indus Building will be built opposite the West Tower Office Block and provide 9 500m2 of A-grade office accommodation on five storeys that allows for flexible sub-division.
Construction on the Indus Building is scheduled to commence in the first quarter of next year and to be completed in late 2016.
Linda Riley, the leasing and investment advisor at Menlyn Maine, said naming rights were available for a major tenant taking up more than half of each new building.
The R135m Orion Building is to be developed on a prime site at the new gateway to Menlyn Maine from January Masilela Drive and opposite the 3 200m2 Regus Building completed in June.
This four-storey building will provide 4 500m2 of flexible lettable A-grade offices, suited to either a single or many tenants.
It is anticipated that construction on the Orion Building will commence in the third quarter of next year.
Boogertman said the West Tower Block had been partly built “on spec” because it was part of the central square mixed-use project currently under construction.
He said negotiations were at an advanced stage with a major commercial for the about 4 000m2 in the West Tower Office Block and strong interest had been received from a number of corporates and professionals for the balance of the space.
He said advanced negotiations were taking place with two corporate tenants for the available space in the Indus Building, but they had only received enquiries at this stage for the available space in the Orion Building.
Boogertman stressed that construction on both the Indus and Orion buildings would only commence once about 50 percent of the lettable space had been pre-let.
He confirmed that all three office buildings would achieve at least a 4-Star Green Star SA rating from the Green Building Council South Africa.
About R495m has already been invested in the five-storey 16 500m2 Nedbank Building completed in 2012; about R345m in the five-storey 11 500m2 Sage Building; and about R105m in the fourstorey 3 500m2 Pegasus 1 building completed this year and occupied by Regus.
A further about R115m is being in- vested in the four-storey 3 800m2 Pegasus 2 Building that will be occupied by BMW.
Other tenants in the completed office blocks include Myburgh Attorneys, SA Home Loans, AON, Treasury One and Menlyn Maine Investment Holdings.
Boogertman said about 300m2 of office space was still available in the Pegasus 1 Building, 1 100m2 in the Pegasus 2 Building and about 9 000m2 in the West Tower Building.
Menlyn Maine’s location minutes away from the N1 motorway’s Atterbury and Garsfontein interchanges and off the main arterial of January Masilela Drive means that it benefits from good transport connections, including easy access to Gautrain bus stops, the new bus rapid transit system and a taxi terminus.
“Its superb location has been a key factor in attracting top business names to Menlyn Maine,” Riley said. A TOTAL of R566 million in development funding has been secured by Menlyn Maine Investment Holdings from Standard Bank for the construction of the mixed-use retail and commercial-use central square in Menlyn Maine.
The about 60 000m2 central square is located within the broader 315 000m2 Menlyn Maine precinct.
A Virgin Active Classic, a concept Spar, Woolworths and a number of the major banks will be the major anchor tenants for a 30 000m2 “boutique” convenience mall located around a central square with upmarket restaurants and a 10 000m2 hotel.
Gary Garrett, the head of real estate finance at Standard Bank, said the bank was proud to be associated with the Menlyn Maine Central Square development, which was part of a key development node.
“Standard Bank believes in the strong real estate fundamentals of the Menlyn Maine precinct, its status as a key mixeduse development node and its sustainable design,” he said.
The broader Menlyn Maine precinct was first promulgated through a land assembly that started seven years ago and resulted in the densification of an existing low-density residential suburb.
Menlyn Maine will be further enhanced by a potential R3 billion investment by Sun International, comprising a five-star hotel and conference centre with 100 luxury rooms, 10 suites and an 8 000-seat indoor entertainment arena.
The Gauteng Gambling Board has approved Sun International’s application to relocate its Morula Sun Casino and Hotel licence from Mabopane to Menlyn Maine but this is being challenged in the high court in Pretoria by Peermont Global, the owners of Emperor’s Place, and others.
The Menlyn Maine development has spurred adjoining developments, with a new luxury high-rise apartment development, The Regency, being built in the Ashley Gardens area close to Menlyn Maine to meet the expected future demand for accommodation in the area.
Retha Schutte, the regional executive of Pam Golding Properties Pretoria and Centurion, said The Regency was being developed by Key Spirit Developments and the 147 modern one- and two-bed apartments with own balconies and quality fittings would be priced from R995 000 to R2.297m. – Roy Cokayne