Johannesburg Mayor, Herman Mashaba has welcomed the Divercity Urban Property Fund’s on R2 billion investment Johannesburg as part of its strategy to create mixed-use inner-city precincts.
The investment, which is the largest in the Johannesburg CBD for some years, will be focused on the redevelopment of the iconic ABSA Towers Main building and Jewel City.
“For the City of Johannesburg, the investment is an indication of investor’s renewed confidence in the potential held within the inner city,” Mashaba notes.
The newly launched Divercity is an investment fund backed by the experience of some of South Africa’s leading property investors and developers.
Absa Towers Main building
According to Mashaba the fund is set to renew and re-energise the country’s urban centres with its unique focus on inner-city precinct development that combines commercial buildings with affordable residential space to create inclusive and diverse neighbourhoods.
The investment will see Divercity redevelop the recently acquired 30-storey Absa Towers Main building into a one-of-a-kind mixed-use building, including 520 affordably priced residential rental apartments, a floor of coffee shops, restaurants and recreation space, child care facilities, a public park, integrated public transport facilities and a wealth of public art.
The project will start in early 2019 and once completed it will be valued at over R400 million.
“Besides creating an inclusive new world-class ‘live, work, play’ environment, the project is also designed to enhance the area as a whole,”Mashaba notes.
Diversity also intends to redevelop Jewel City, the former heart of the diamond and precious metals trade in Johannesburg, which spans six city blocks that have been closed off to the public for decades.
The fund will reopen Jewel City to the public as a vibrant mixed-use precinct with a fully pedestrianised streetscape and a total development value of over R1.2 billion once fully completed.
The project includes the redevelopment of existing buildings as well as the construction of over 40,000sqm of new buildings in the precinct.
“The rejuvenated Jewel City will include an abundance of amenities such as a school, clinic, gym, parking and convenience retail as well as fast food and restaurants. It will also include 20 000sqm of commercial space, 1 200 new residential apartments in phase one and up to 1 000 in phase two. In addition the pedestrian-friendly walkway between Absa Tower Main and Maboneng will past directly through it,” Mashaba explains.
Work on the Jewel City project is expected to begin in November with the first phase of retail, commercial and residential space set to be ready by August 2019.