Joburg set for R2bn facelift
The Absa Towers will be redeveloped and the new Jewel City precinct transformed.
New Jewel City precinct to see several old buildings redeveloped in ‘live, work, play’ mixed-use node.
In one of the largest private sector-led property developments in the Johannesburg central business district (CBD) in decades, R2 billion will be invested in the makeover of the 30-storey Absa Towers Main building and the nearby Jewel City new mixed-use urban renewal precinct.
Divercity Urban Property Fund, a new company backed by Atterbury, launched its ambitious plans in the CBD recently. Other partners and shareholders in Divercity include Ithemba Property and Talis Property Fund, founded by Tebogo Mogashoa.
The Absa Towers redevelopment has been on the cards for several years and will see the building being transformed into a mixed-use property, including 520 residential apartments, a floor of coffee shops and restaurants, office space and convenience retail on the ground floor. Divercity acquired the building from Absa, conditional on Competition Commission approval.
The new Jewel City precinct, located between Maboneng district and Absa’s head office precinct, will see several old buildings being redeveloped and the area transformed into a “live, work, play” mixed-use property node.
Mogashoa said: “We have committed to invest R2 billion in the current financial year into our developments in the Johannesburg CBD. When complete, it will represent about R4 billion worth of investments in the city centre.”
Wouter de Vos, chief executive of Atterbury Property Fund, said: “Besides helping to transform our cities, Divercity itself is committed to transformation in the property sector. Tebogo, who developed the Pan Africa Mall in Alexandra, played a key part in the formation of Divercity.”
De Vos told Moneyweb that both Divercity and Atterbury Property Fund are set to list on the JSE within the next few years. He said, however, that the current focus was to scale up its property portfolios and development pipeline.
Mogashoa said: “Divercity bought the Jewel City properties from Redefine. Jewel City was once the hub of Johannesburg’s diamond and precious metals trade, but the buildings have been largely vacant and closed off to the public for years. With the success of Maboneng, Jewel City is in a prime location to extend the regeneration of the city towards Absa Towers.” He added: “Our plans will see Jewel City reopen to the public with a fully pedestrianised streetscape, connecting Maboneng to the Absa precinct. Divercity will be launching more than 2 600 affordable apartments, covering some 75 000m2 of new residential space, over the next 18 months in the Joburg CBD.” Following the success of the Maboneng precinct, which was spearheaded by urban renewal pioneers, Propertuity, the Jewel City development represents a new wave of investment in the CBD. Maboneng has attracted over R1 billion in investment over the last decade and recently was named by Forbes magazine as one of the coolest neighbourhoods in the world.
City of Joburg mayor Herman Mashaba said: “What inspires me about Divercity’s plans is … their investment is going to spur other private sector-led projects and also the take up of the city’s urban regeneration property development opportunities.”
Jewel City represents a new wave of investment