CITY LIGHTS
After 11 funky years, urban renewal pioneer eyes other challenges
Maboneng Precinct in the Johannesburg CBD launches a new chapter as the man who started it all, Jonathan Liebmann, eyes new challenges.
● Entrepreneur Jonathan Liebmann says in many ways his vision of Maboneng Precinct in central Johannesburg has been realised and he is not the right person to take the development forward.
Instead, RMB Holdings (RMH), which has become Maboneng’s main financial backer, is bringing in new management and trying to run the mixed-use asset more efficiently.
Liebmann, the real estate developer who has been at the head of Propertuity, the company he built and which developed the area on the eastern fringes of the city’s CBD, says he wants to leave after 11 years to pursue other ideas.
This follows RMH, which first invested in Propertuity a couple of years ago, having more influence over the company.
Some tenants say Liebmann gave them an exciting opportunity to bring a variety of businesses to the inner city but now Maboneng needs a more experienced and larger property management team to gain more traction.
Others, who asked not to be named, said the precinct had been a challenge to get going and had gone through various teething problems, including an unreliable invoicing system. However, the tenants who have survived appear to be in it for the long haul.
A steering committee of business owners and residents has been created. Liebmann says he has been drawn to urban renewal for some years and he could pop up again in Johannesburg or elsewhere in South Africa.
One project he has begun is Hyde Park House, an apartment development with units selling from R1.495-million. It is intended to bring younger people into the traditionally upmarket suburb. He says he is also involved with a new tech start-up, the digital rental platform Flow Living.
“I’ve had a number of ideas for a while outside of Maboneng. Even though I am leaving its management, I will remain as a shareholder,” he says.
He says Propertuity is not the only developer in and around Maboneng, which shows how investors are starting to see value in this part of the inner city. The likes of Atterbury and Ithemba, via the unlisted fund DiverCity, as well as Afcho, are considering or already developing more residential rental stock in the precinct.
Liebmann’s departure as CEO of Propertuity raises questions about whether the precinct is in trouble. While he says there is no doubt that it remains one of Joburg’s most visited neighbourhoods, he admits that like most other property nodes across South Africa, it has seen an uptick in commercial vacancies and a drop in residential sales on the back of a floundering economy. The precinct’s office and retail vacancies are currently sitting at 20% and 7% respectively.
“Tough trading conditions have necessitated a restructuring of Propertuity and a change of strategy,” he says.
Propertuity financial director Reanne van der Merwe, who will take over from Liebmann as acting CEO, says some retail tenants are continuing to experience revenue growth while others are more affected by tough market conditions.
Meanwhile, Maboneng is increasingly recognised as a must-see tourist hotspot. The precinct was recently nominated by the 2018 Lilizela Tourism Awards as one of South Africa’s best leisure destinations.
But Russell Grant, owner of The Bioscope, an independent cinema which was one of
Though I am leaving management, I will remain as a shareholder Jonathan Liebmann Founder of Propertuity
Maboneng’s first tenants, says the precinct has become a lot more than a tourist spot.
“Maboneng used to be a thing that tourists ticked off a list. It was an interesting place to come for events but it has become more and more like a neighbourhood. People live here now,” he says.
He believes The Bioscope, which opened its doors in June 2010, on the eve of South Africa hosting the Soccer World Cup, managed to survive partly because it didn’t overcapitalise at the beginning. `
“We started quite humbly. Like many tenants at the time we were trying something out. We didn’t know if we’d be successful. I think not overspending has worked in our favour and our position has helped. Some bars that were on the outskirts of Maboneng struggled,” he says.
Last year’s opening of Hallmark House, a luxury hotel and apartment development, has further raised Maboneng’s status as the city’s premier live, work, shop, eat and play hub. The 17-storey building was co-designed by famous Ghanaian-British architect David Adjaye and is home to a jazz club and a popup version of chef Luke Dale-Roberts’ Cape Town restaurant, The Pot Luck Club.