Johannesburg’s Inner City Rejuvenation Well Underway
In August 2018 mayor Herman Mashaba announced that 500 properties had been earmarked for redevelopment in the inner city. A combination of student and residential accommodation, this is not a new initiative but certainly breathed life into the renewal project spearheaded by the previous mayor in 2016.
Johannesburg Property Company identifies suitable sites for redevelopment and these are then put out to tender. A total of 70 properties were initially released, with a further 74 in April 2019. Successful bidders are awarded a 50 year lease with appropriate development grants within the City’ of Jojhannesburg’s guidelines.
The project seems to be enjoying a lot of support, with the announcement in April 2019 of the release of an additional 84 properties extending into Houghton, Randburg, Roodepoort and beyond. Of course there are the usual South African hiccups with naysayers and building hijackers presenting challenges – but investors with the heart for it are not easily deterred. The mayor has indicated the release has been accompanied by a large financial injection (in the form of development grants) and within the next 6 months we should start seeing cranes going up in the city as these properties are developed.
This also provides great opportunity for new entrepreneurs and developers to cut their teeth in the inner city and we are excited about seeing our city and its people demonstrating the energy and vision that Joburgers are famous for, Redevelopment of buildings for residential purposes is not new to the private sector with many developers active in the inner city – some for many years – including Afhco, SA Corporate Real Estate and various individual private property owners. One of the exciting development projects underway at present includes the large-scale redevelopment project of the Diamond Exchange by Divercity with over R2 billion in investment in the next 2 years.
Commercial Exchange has been involved in the marketing and selling properties for redevelopment in the inner city for a number of years and our sales include everything from small hijacked buildings in Jeppestown to large-scale investment sites in Marshalltown and the centre of Johannesburg. Some of the resulting development projects on these sites will be discussed in our next blog post and we look forward to sharing our news with you