Cape Town – a not-for-profit social housing company (NPC), Communicare, has sold its real estate at Foreshore in Cape Town's international hotel chain for 120m euros, it was announced on Sunday.
The new owner, a foreign buyer, operates in the real estate market. For some time they looked for an ideal place for a five-star boutique hotel and settled on the Communicare building on Walter Sisula Avenue, opposite the International Convention Center in Cape Town (CTICC).
The facility is an ideal place for the development of the catering sector. It is located close to the City Center, the Artscape Theater, the harbor and the V & A shore. The property has good access to the N1 and N2 motorways, and is close to the MyCity rail, taxi and bus lines.
In a five-story building, the Commune's main office is currently located on two floors, while the rest of the building is rented as a business space and a parking lot with 78 vehicles.
The area of 1294 meters was purchased from the Foschini Group at the end of the 1980s for R 300 000, and the construction of the current building was completed in 1991 at a cost of about 10 million. The development was funded by Communicare and the Joint Pension Fund Cape (CJPF) in a joint venture. However, Communicare, in 2001, purchased a 50 percent CJPF share.
"We've considered all the opportunities for best site use, including the development of mixed-use social housing," said executive director of Communicare Anthea Houston.
"The cost of such development in this country was too high, land was discharged from the sea and has a high level of water. Costs of accumulations, foundations and drainage would make the development of cheap social housing this place inaccessible.
"The form of the site also set restrictions on housing development, which would further affect the costs. Instead, we decided to sell the property and invest funds in other rent and social housing in well-located areas of Cape Town," Houston said. .
This year, Communicare worked on developing more than 1100 units. This includes 138 rent units under construction at Musgrave Villas in Diep River and 314 social housing units at Bothasig Gardens. The development of mixed use in the Salt River Market was also one of several other planned events.
The growth of V & A Waterfron and the opening of the CTICC triggered a whirlwind of real estate development at Foreshore with interior city housing, office buildings and hotels that covered the horizon.
"There is no compelling reason to edit the Communicare programs in the city center. Maybe it was a good idea in the 1990s, but the time has passed. I think it's more appropriate and convenient to locate our office outside the city crowd – Houston said.
"In order to maintain the present value, 28-year real estate now requires significant maintenance, which we estimated to approximately 40 million euros.
"The sale of buildings has been on our agenda for some time. I'm glad we finally concluded this sale at an attractive price. I am convinced that the sale of buildings is the right decision at the right time. After 28 years on the coast, it's time to rotate our property. The building survived its usefulness and it was time to have this property available.
"Our sales enable us to focus on our core business of providing housing and human services to Cape Town where they need it most – this is an exciting time for Communicare, and now we have more opportunities to equip our finances and quickly track specific events. current and future tenants who have access to more decent and accessible housing.
"I am glad that now, as a result of the sale, we can offer retirees the concessions on their rent if their age limit is their only revenue," Houston said.
African News Agency / ANA