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Gautrain props Rosebank against rival

Johannesburg - The Gautrain, which will call at Rosebank from June, as well as the Bus Rapid Transport (BRT) project, will bring Rosebank into its own as a serious competitor to Sandton.

This is according to Old Mutual Property, which has invested R850m in Phase 2 of The Zone@Rosebank in order to expand its retail offering. The development, which also includes a Holiday Inn hotel with 158 rooms, has recently been completed.

The mixed-use development’s unique competitive advantage is that it will be bus and train passenger conduit to Rosebank, said Gary Hardisty, who manages Old Mutual Property’s Triangle Real Estate Core Fund.

The entrances to the development are situated right alongside the Gautrain and the BRT stations and can lead to heightened foot traffic.

Hardisty said this was consistent with international trends, in which retail developments were being successfully integrated with transport hubs.

Old Mutual Property chief executive Ben Kodisang said the group had for years been active in Rosebank and the Gautrain was a bonus.

He said the group envisaged investing a further R500m-odd in the area.

This involved the development of 25 000m² of A-grade offices with retail on the ground floor.

Together with the R200m-odd investment in Mutual Square and the R850m in Phase 2 of The Zone, the total investment would amount to more than as R1.5bn.

Mutual Square, Phase One of The Zone, and possibly Phase Two, are among the properties forming part of the R12bn property portfolio of the Triangle Fund which Old Mutual Property wants to list on the JSE later this year, said Hardisty.

The fund’s flagship property is the Gateway Theatre of Shopping in Umhlanga. Other assets include 50% of the Menlyn shopping centre in Pretoria and 50% of Cavendish Centre in Cape Town.

Hardisty said although it was a diversified property portfolio, its exposure to retail property was about 75%. The group wanted to remain overweight in retail because the major shopping precincts had performed well over the years.

- Sake24

For business news in Afrikaans, go to Sake24.com.



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