CLAREMONT REPORT THE STATE OF - BAKER STREET PROPERTIES
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THE state of claremont REPORT 2016 C
SETTING THE SCENE
SA
NS SA Breweries
SO
PAL UC
MBO I
OM
IN
MA
T
LE TT ER ST ED
Foreword
NAME: Draper On Main
ND
LOCATION: Main & Draper LE
MYRT
OU
TYPE: Office & retail (5,500 m2)
GR
M IL L
MP
STATUS: Scheduled for March 2017 -
LE
CA
completion by June 2018.
TT
ER
DEVELOPER: Growthpoint
and introduction
HEMLOC
ST
MA IN
INVESTMENT: R160m
ED
T
ET
KIL T H IC K
K
ME
WH DA
RE
ES
EL
AN
PA
TE
RS
ON OF
NH
FI R
GLE
A WORD FROM THE CHAIRMAN and reinforces the reasons why the
EA
WI DRAPER
OT
EN Claremont CBD is a preferred develop-
A
PR
LB
ER
DIN
Much has changed in Claremont since
ME
M O SQ U E ment destination.
WO
CLAREMO NT BLVD
DRAPER the Claremont Improvement District
The report is primarily designed to be a
N
Company (CIDC) was established in
TO
N IE K ER K S
LIN
2000. In that time, significant investment tool for investors who are considering
CO
D R AP ER N their investment plans. We want those
S Q U AR E STEGMA has flowed into the area, with tangible
IE
CO
RW TOFF N results. New commercial and residential plans to shape Claremont’s future.
EN
LAUREL STEGMA
buildings have been built, and existing
I would like to thank the CIDC board and
buildings have been refurbished. The
OAKDALE the Executive Manager and the team for
LO Stadium public transport interchange has been
EA
TH their help in compiling this document –
AN on Main
OT
VI NE YA RD built and the Claremont Boulevard has
DREYER
PR
R OS CO M M
ON and for their hard work in making the
been constructed.
Claremont CBD a high quality urban David Stoll
These, and many other developments, environment that is an attractive place Chairman, CLAREmont
Cavendish
C AV E
improvement district
Bus
YRA
Square have all created a positive momentum for to work, shop, live and play.
QU
E L IS K
FEL
Terminus
ING
N D IS H
OB
PALM
IET
the growth and development of the Clare-
SEL
FRE
MA
DHA
& Taxi Rank
LE
David Stoll
ME
RK
BOR
mont central business district (CBD).
DER
ME
USE
Chairman, CIDC
NEWRY
L
NE
ICK
“
N
WI CK
WAR Claremont
NAME: Werdmuller Centre MESSAGE FROM THE
LOCATION: Main Road URT Station
PEA
RCO R A LP H
MA IN
HA
TYPE: Office, residential & retail MONT The report is designed to be CIDC EXECUTIVE MANAGER
RCE
ROSE
STATUS: Construction to begin in 2018
DEVELOPER: New Property Ventures
RNE
a tool for investors who are From the early days of the CIDC,
under Anthony Davie’s leadership, the
considering their investment
CAV END ISH
INVESTMENT: R450m O
OSB OVE ST AT ION
GR Claremont CBD is a continuing work in
plans. We want those plans to
CHA
LEA progress. We have moved beyond the
HUG
LAN
HOP
MB
DSD
BIS
shape Claremont’s future. era of litter-strewn streets and pervasive
ON
OW
ERL
NE
crime into a phase of sustainable growth.
AIN
VE STA NH OP E
GRO
FEL
OKE We measure our success by the
BRO
DHA
economic success of those who work, Abdul Kerbelker
USE
NAME: Old Marshall ISK
LHouse HO PE The numbers say it all. During the past live and play within our boundaries.
Executive manager, CLAREmont
O B E Road & Grove S TA N improvement district
N
NEW
LOCATION: Cnr Main decade, the value of commercial and That’s why it is so exciting to see the
VE
LAN
Avenue residential properties in the Claremont
TYPE: Office & retail GRO reshaping of the urban landscape, and
ER
DS
P CBD has risen by 399% to a total of
STATUS: Construction 2019U P AV E to see new businesses open their doors.
DEVELOPER: New Property Ventures BR OOK R7.1 billion in the 2016/17 financial year.
CAR
HERS CHEL
INVESTMENT: R140m OOL OD We remain committed, along with A note on the focus area
SCH WO While we see the physical evidence of
BOW our partners at the City of Cape Town
EL
The report focuses on the properties
CH
these developments every day, the inau- and the Provincial Government, to
RS
OA
BATH and public spaces that lie within a
HE
gural State of Claremont Report offers
K
driving the success of our CBD, while clearly demarcated area, shown in
us the opportunity to tell the story of the
MO
also offering support to the less
EDEN
the map opposite. This boundary is
CHURCH
RRI
state of the Claremont CBD in 2016. fortunate among us through our social not arbitrary: it reflects the CIDC’s
S
W IL D E R N operational area. While investment
ESS
This document, the first of its kind for programmes. As we achieve the first
T TE within this area benefits the whole
NE Claremont, presents a consolidated we can succeed in the second.
AN
M A IN
of Claremont, the work the CIDC
NEWLA
OOD overview of the development trends and
BOWW Abdul Kerbelker undertakes is limited to the area
investment profile of our neighbourhood, shown within that boundary.
NDS
Executive manager, CLAREmont improvement district
Arderne HAR FIE L D
1
Gardens
2016
claremont State of CHAPTER 1
improvement claremont
district report
CLAREMONT IN CONTEXT
7
8 9 10 27 28
The Claremont
CBD is one of Cape
IN
14
MA
LETTERSTE
DT
Town’s most popular
commercial, retail,
ND
LE
MYRT
OU
GR
LE
M IL L
entertainment, and
MP
TT
6
H EM LO CK
CA
ER
ST
MA IN
AD
22 leisure precincts.
T
ET
5 THICK
Cavendish Square
3 32 Shopping Centre
FI R
EA
OT
PR
MOSQUE
19 DRAPER CLAREMON T BLVD
lies at its heart and
NIEKER
KS a further 230 retail
E
4
COR
WE
N
TOFFI
LAUREL STEGMA
N
outlets operate in According to the
33
the surrounding
2016
OAKDALE
EA
DR EY ER
2 34
OT
V I N E YA R D
PR
ON
16
ROSCOMM
area. During Community Survey,
YRA
the day, office
C AV E
1 OBELIS
K 27 12 after Gauteng,
PALM
ING
13
N D IS
15 the Western Cape is the
LE
buildings buzz with Montclare Place (left) and Paramount Place (right)
H
NEWRY 26 second most attractive
IC K
ARW destination for
MA IN
PL EA W
RALPH 11 economic activity, in-country migrants.
PEA
BI SHO
RCE
VE
and at night bars, Claremont is centrally located With the construction of and retail outlets within the CIDC
CAVE NDIS H
GRO S TA T I O N
10 kilometres south of Cape the Boulevard, planners precinct.
FEL
restaurants and
DHA
LAN
Town city centre. The centre have been exploring the possibility
NE
DSD
USE
24
WL
OWN
OKE E
night-clubs offer Today, the Claremont CBD
AN
CLAREMONT BY
N
25 GRO
V E BRO lies within a grouping of affluent of developing more pedestrian-
DS
S TA N NUMBERS
HOPE features 118 901 square metres
HOPE
31 varied entertainment suburbs including Rondebosch, friendly access through the CBD.
of commercial space which,
AN Newlands, Bishopscourt,
20 ST options. Constantia, Kenilworth, Wynberg
The CBD has grown significantly when combined with residential
OD since 2001, with many new units in the area equates to
HERSC HEL
and Bergvliet. Many of the
M AI N
WO
23
BOW
29 country’s leading schools are 3
transport nodes
residential, mixed-use and
commercial buildings shaping its
R7.1bn in value, and over 430
retail outlets.
21 17 17 close by. It is also well connected
30 skyline.
to surrounding areas by three Six new developments are
major arteries: the M3 freeway, The first wave of construction of planned to be built over the next
NEWLA
connecting it to Muizenberg; the residential properties occurred five years.
NDS
HARFIELD
Retail/hotels: 12 T axi rank CLAREMONT BY 23 estern Province Preparatory
W M5 freeway leading to Milnerton during the housing boom of 2000
1 Cavendish Square 13 Bus terminus
NUMBERS
24 New Hope School of Nursing and suburbs to the north; and 430
retail outlets
to 2007, when a series of large
These developments are a
reflection of the success of the
2 Stadium on Main 14 Newlands Station 25 Grove Primary Main Road which links Claremont (230 on street residential apartment blocks were
3 Montclare Place Claremont Primary to the village-suburbs that lie on CIDC in reducing crime and
15 Claremont Park ’n Ride 26 level plus at least built within the Claremont CBD.
4 Vineyard Hotel 27 Groote Schuur High School its north to south axis.
200 in Cavendish grime within the Claremont
Square)
However, a five year hiatus in CBD; and the CBD’s renewed
5 Southern Sun Newlands
6 Park Inn by Radisson
Service facilities
16 Postnet
399%
increase in
28
29
Groote Schuur Primary School
Claremont High School
Significant upgrades within residential developments in the status as an attractive area for
commercial the CBD have stimulated the Claremont CBD during the global both commercial and residential
17 Claremont library
and residential development of an active public financial crisis, and subsequent developments.
Attractions: 18 Claremont Civic Centre property values Medical facilities
7 SA Breweries
from 2000- transport interchange, which Approximately domestic economic recession
81:19
2016 30 Kingsbury Hospital
8 Newlands Rugby Stadium Places of worship 31 Claremont Clinic
supports 8 200 (2016 estimate)
commuters every day, arriving
120 000
sq retail space
m
slowed down development. When
building resumed in 2012, the
9 Newlands Cricket Ground 19 Claremont Main Road Mosque
10 Kelvin Grove
by bus, taxi and train. The developments were typically
20 St Saviour’s Anglican Church Other
recently constructed Claremont smaller, higher value residential
32 Virgin Active
Transport/infrastructure Schools & education 33 Rush and Ten Pin Bowling
Boulevard has minimised blocks on the periphery of the % ratio of commercial
11 Claremont Station 21 H
erschel Girls School 34 Planet Fitness
congestion, enabling traffic to CBD – but still within easy walking to residential
22 S
an Souci Girls High School
flow more freely into the CBD. distance of the various offices properties
2 3
2016
claremont State of CHAPTER 2
improvement claremont
district report
FIG. 2 The spread of residential units across the
RESIDENTIAL
Claremont CBD, as well as just outside its boundaries
Complex name Location Units Yr
1
1 Montclare Place Main Road 62 2006
2 The Claremont Main Road 335 2006 5
PROPERTY TRENDS
2
3 Seven Miles South Stanhope Road 91 2006
4 Intaba Protea Road 143 2007 4
5 Taranga Glenhof & Weiner 21 2012
6 The Herschel Herschel Road 66 2012
7 Oakley Villas Fieldhausen 3 2015
8 Ashburn
11
Grove Ave 26 2015
At the time of writing, the residential profile of the entire Claremont 9 35 on Grove Grove Ave 14 2015 7
suburb comprised 3 895 freehold and 2 669 sectional title properties. 10 The Beaumont Grove Ave 178 2015
10 3
The majority of the sectional title properties are located within – and 11 Collingwood Place Grove Walk 8 2016
9
in the immediate vicinity of – the Claremont CBD. During housing market boom: large-scale
8
developments within Claremont
Post-recession: smaller, upmarket 6
The appeal of Claremont as a Before the property market Rising property values developments on periphery
residential node is reflected in slump in 2008/09, development CLAREMONT BY
comprised primarily large-scale NUMBERS From 2012 to 2016, prices for
the fact that the majority of home
developments constructed apartments have risen by an
owners in the area (59%) have
average of 15.3% per year. In August 2016. This equates to just FIG. 3 CLAREMONT: sectional title sales (Sep
remained in their properties for within the CBD, responding to
2010, the average price was over R360m of sales in just 12 2015 – Aug 2016)
the demand for high-density
eight or more years – with 45% of
R820 000 for a sectional title A decade ago, the median months.
those for 11 years or more.1 housing close to public transport
and economic opportunities.
9
schools and
unit, while a freehold property price for a sectional title More than 300 new residential
Price band Units sold Median price
(rm)
training academies was priced at, on average,
Sectional title activity As the market began to recover R1.8m. property in Claremont apartments have been R3m 21 3.8
increased steadily since the local
smaller, upmarket developments
on the periphery of the CBD.
average sectional
title property The higher prices are seen in sectional title unit was well as aging apartment blocks. Lightstone
recession and have accelerated value (2016 ytd)
blocks that comprise more luxury R1.6 million – a robust The growing success of the
rapidly in recent years: over 300
units were sold in 2015.
increase of 152%. Claremont CBD has also boosted fig. 4 CLAREMONT: Peripheral development
CLAREMONT BY developments on its periphery. Complex # Sales 2016 R/sqm
NUMBERS
Notable residential developments Montclare Place 4 28 073
features such as secure parking, in the CIDC area include:
a gym and a swimming pool. The Claremont 9 26 668
• The R320m conversion of the
11 555
people live within entire
This equates to an average of
R23 000 per square metre for
former Norwich headquarters
on Protea Road into a 200
Seven Miles South 7 24 260
suburb of Claremont Intaba 6 27 380
1. LIGHTSTONE sectional title properties in and unit residential complex called
around the Claremont CBD.2 In Intaba. Only two months after Taranga 1 32 175
more desirable apartment blocks, initial transfers, a mark-up of
FIG. 1 Median property prices for Claremont The Herschel 1 30 510
such as The Herschel, The 25% to 30% on the original sales
residential units, 2010-2016 Beaumont and Taranga, this price was being achieved. The Oakley Villas not available not available
price increases to more than premium position apartments
CLAREMONT Median 2006 – 2010 – R30 000 per square metre.3 Other Ashburn 10 29 880
(facing northwest) sold for a 10%
price 2016 ytd 2016 ytd popular complexes include The premium over standard units in
2016 YY% YY% 35 on Grove 10 22 150
(Rm) Claremont, Seven Miles South, 2007.
Montclare Place, and Intaba. The Beaumont 2 33 145
Freehold 3.5 +119.4% +93.8% • The Beaumont comprises
Lightstone reports that 220 179 apartments in two adjacent Collingwood Place 8 25 465
Sectional title 1.6 +152.0% +94.6%
sectional title properties were sold blocks of 12 and five storeys Lightstone
Lightstone across the area in the year to respectively. The development
2. Seeff agents, November 2015 | 3. Seeff agents, November 2015
4 The Beaumont
4 5
2016
claremont State of
improvement claremont
district report
1
consists of studio, one-, two and
three-bedroom apartments all
with secure basement parking.
Prices range from R0.85m to
R3.995m. Two penthouses sold
for R4.2m and R4.9m. A portion
of the ground floor of the building
houses two retail sections, each
with approximately 250m² of
floor area.
•35 on Grove is a five-storey
A CLAREMONT
development in Grove Avenue.
It comprises 14 units: 12
two-bedroom units and two
three-bedroom penthouses.
SNAPSHOT
These developments represent
a growing demand for rental
Montclare Place
accommodation in the southern
suburbs. Claremont CBD – with its strong
residential component aimed
Mixed-use trends at attracting residents back to
the area to create a secure 3
In line with the national trend and vibrant CBD. The site is
towards decentralised, mixed-use bounded by Draper Street, Main
nodes, a number of mixed-use de- and Stegman Roads.
velopments have been established
in the Claremont CBD during the The conversion of offices
past decade. These comprise a into apartments has helped 2
combination of retail, residential to reduce the previous
and commercial activities. oversupply of offices to zero.
The Claremont has made a
Montclare Place was the first 4
significant contribution to the
to set the mixed-use trend in CIDC’s urban renewal plans.
Claremont. Built in 2006, the
R450m development includes By combining retail and
the flagship 6 000m2 Pick ‘n Pay The Claremont residential uses, tenants benefit
and incorporates 61 residential from the nearby amenities and
units made up of studio, one-, investors are able to generate
two- and three bedroom units In line with the national trend towards better returns. Sales reports
show that more purchasers were
and 11 penthouses, and a Virgin
Active Premier gym.
decentralised nodes, a number of owner-occupiers than investors.
The next mixed-use develop-
mixed-use developments have been The majority of tenants form a 5
cosmopolitan blend of young
ment to make its mark was the established in the Claremont CBD professionals and university
R280m The Claremont – a during the past decade. students.
four-tower, mixed-use complex The Claremont CBD
6
offering 322 apartments, more comprises a growing mix
than 520 undercover parking of private accommodation,
bays, storerooms and price retail FIG. 5 Mixed-use developments within the Claremont CBD public spaces and
space. The Claremont occupies commercial and retail
Development Date Address Type Status Developer Value businesses
an entire city block in the heart of
constructed
the Claremont CBD. Original off- 1
The 2006 Main Mixed Completed Foodprop & R250m Cafe society
plan prices started at R595 000
2 High fashion, high street
(inclusive of parking bay, VAT and Claremont Road use Zwelinzima
Prop 3 Residential densification
transfer costs).
4 New businesses opening
The Claremont was the first MontClare 2006 Main Mixed Completed Growthpoint R450m
Place Road use Properties 5 Clean and safe streets
development of its kind in the
Lightstone 6 Public space for public life
6 7
2016
claremont State of CHAPTER 3
improvement claremont
district report
Cavendish Square
DOING BUSINESS
FIG. 7 Four largest sectors within prime office
space in Claremont CBD & their AREA (sqm)
55 22 3
IN CLAREMONT
Retail & car Gyms
Restaurants and
fast-food OUTLETS
dealerships
7 523m2
14 563m 2
The Claremont CBD features various distinctive
business profiles. Both high-end retail and more
affordable options are available. Commercial
businesses thrive within office buildings and bars,
restaurants and night clubs come alive after hours.
32
health and beauty 7 55
outlets Call
centres Financial
Services
16 633m 2
30 316m2
9. SAPOA
Built in 1973, Cavendish Square The diverse
retail offerings
Shopping Centre anchors the include:
retail activity in the area. It serves
an affluent market of shoppers
55
pubs/clubs/
It serves a catchment area of
around 34 000 households, with
seeking high-end brands in a restaurants
an average monthly income of
formalised trading environment.
6 R43 000 per month5. This retail
Other retailers serve a lower- medical traffic has a positive knock-on
income audience, in street-facing effect on the other retailers
stores on the eastern edge of 10
motor retail
in and around the CBD, who
Main Road. Commercial activity benefit from the success of the
inside the CBD’s office complexes 11 larger centre.
is dominated by the BPO and financial services
financial services sectors. After
hours, the bars, restaurants and 8
supermarkets
Commercial activity
night clubs keep the area active. The growing trend towards
As Claremont CBD’s anchor 4 Entrance to Cavendish from Cavendish Connect decentralised business nodes
estate agents has attracted many commercial
tenant, the shopping centre
businesses to relocate to
attracts on average 1,7 million
shoppers every month.
41
clothing
the Claremont CBD. Newer
commercial developments offer
more space for lower rentals
FIG. 6 Breakdown of SHOPPING MALL RETAIL in the than the Cape Town CBD. This
Claremont CBD 4 is a particularly attractive benefit
Number Gross Parking for businesses that need larger
stores lettable bays floor areas and accessible
retail (sqm) transport options, such as call
centres and financial services
Cavendish Square 206 53 264 1 800
institutions.
and Cavendish
Connect (formerly Currently, Claremont CBD
The Link features 118 901 square metres
MontClare Place 16 8 087 500 of commercial space, and six
new developments are planned
Stadium on Main 42 26 078 850
over the next five years.6
Total 87 429 Stadium on Main
4. mallguide.co.za | 5. Cavendish Square research 6. Claremont Improvement District Company Cavendish food court
8 9
2016
claremont State of CHAPTER 3
improvement claremont
district report
FIG. 9
COMMERCIAL average
BUSINESS
VACANCY
PROPERTY TRENDS rate FIG 10 Claremont OFFICE RENTAL RATES (2012 to Q2 2016)
Total rentable office space in the 180
Claremont CBD has increased
6.4% 160
FOCUS
by 15 279m² over the past five
140
years. Today, it totals 118 901m².
Claremont CBD B GRADE
120
An additional 3 000m² rentable
A GRADE
office space became available 100
during the second quarter of 80
2016, with the release onto the 10.3% 60
C GRADE
market of 11 000m² A grade
With lower rental rates, excellent transport office space. 40
Cape Town CBD
links and diverse leisure facilities, Claremont This space was created with 20
is becoming a well-established hub for 6 500m2 within the new Citadel 0
commercial businesses in all sectors development, and the remaining
9.5%
2012 Q2 Q3 Q4 2013 Q2 Q3 Q4 2014 Q2 Q3 Q4 2015 Q2 Q3 Q4 2016 Q2
SAPOA
4 500m2 in Grove Exchange.
This was partially offset by an
8 000m² decline in available Century City FIG 11 Claremont OFFICE vACANCY RATES (2012 to Q2 2016)
Business process A number of leading financial
institutions have relocated to the
outsourcing7 CBD, including Brait, Peregrine, Grove Exchange FIG. 8 Summary of rental office space in the
60
Coronation, Deloitte, Citadel and Claremont CBD (Q2 2016) 50
South African call centre staff
RE:CM and the Institute of Bankers
have an excellent reputation Grade Total rentable Available
of South Africa. 40
internationally for their customer area (m²) for leasing
service ethic, while the time zones, Like the BPO sector, these entities CORPORATE BUSINESSES BENEFIT 30
B GRADE
A grade 62 636 4 673
good English language skills and are taking advantage of lower
office rental costs, and greater
FROM THE CACHET OF AN AFFLUENT C GRADE
comparable cultural outlook make
the country attractive particularly to variety in accommodation options. ADDRESS WHILE AVOIDING B grade 46 586 1 379 20 A GRADE
the British call centre industry. The financial services companies CONGESTION AND HIGH RENTALS. C grade 9 679 1 502 10
benefit from the cachet of an
The first call centre in Claremont affluent address, while avoiding the TOTALS 118 901 7 554 0
was established in Stadium congestion and high rentals of the 2012 Q2 Q3 Q4 2013 Q2 Q3 Q4 2014 Q2 Q3 Q4 2015 Q2 Q3 Q4 2016 Q2
SAPOA Office Vacancy Report Q2 2016
on Main in 2006. Today, the Cape Town CBD. SAPOA
Claremont CBD is part of a growing names and long-standing venues.
The Claremont CBD provides a Others, including the popular Tigers Milk Kitchen & bar
network of nodes attractive to B grade office space. A grade While both B and C grade office
vibrant environment in which to Tiger’s Milk restaurant are new
business process outsourcing office space comprises around rentals have shown modest
(BPO) enterprises seeking larger
work, live and play. The central
location, convenient lifestyle
55 additions to the entertainment
53% of the total office space in growth, A grade rentals have
floor space for lower rentals nightclubs, bars, selection.
offerings, easy access to prominent fast-food outlets the Claremont CBD. (See Fig. 8) increased steadily since late 2013
combines. and restaurants
– suggesting robust demand for
schools, public transport and Increased activity after dark helps
The vacancy rate in Claremont
In addition to attractive property A Grade office blocks ensure that to improve surveillance in the area, quality office accommodation in
CBD has been declining in
rentals, BPO organisations in office space in the Claremont CBD enhancing the safety of people Claremont. (See Fig. 10)
recent years (See Fig. 11). In
Claremont are able to offer is in constant demand. who live and work in the area once
the second quarter of 2016, The refurbishment of Claremont,
their staff access to good public the commercial offices have closed
the average vacancy rate for with many office buildings being
transport, excellent shopping
facilities and diverse entertainment
night-time economy for the day.
Claremont CBD (See Fig. converted to residential units,
But effective management is key. 12) was 6.4%, compared to largely wiped out the CBD’s large
and leisure amenities. To be successful, urban
Owners and managers of the 10.3% in Cape Town CBD and office oversupply – which had
environments need to support
At the time of writing, seven various establishments need to 9.5% in Century City. reached almost 25%.
economic activities during both the
call centre operations employ commit to ensuring that revellers
day and night. Night-clubs, pubs
more than 2 100 people in the and establishment staff are kept
and restaurants attract patrons FIG. 12 A GRADE B GRADE C GRADE
Claremont CBD. safe, and property is protected
well into the early hours, creating a
from anti-social behaviour at all
vibrant and dynamic environment. average VACANCY
Financial services The Claremont CBD hosts 55 bars,
times. In this context, the work of
the CIDC is critical. We welcome
rate of OFFICE 7.5% 3% 15.5%
SPACE
Claremont is a financial hub – with restaurants, fast-food outlets and establishments that attract
some of the country’s biggest nightclubs operating at street level people 24-hours a day, but we
financial and private equity and within the various centres, do also emphasise the need for Average gross
companies based in the CBD. some of which are household responsible management. asking rentals R170m2 R120m2 R65m2
10 7. www.eprop.co.za/commercial-property-news/item/6758-Claremont-CBD-secure-South-Africa-s-biggest-call-centre-investment.html 11
2016
claremont State of CHAPTER 4
improvement claremont
district report
CLAREMONT PROPERTY
FUTURE DEVELOPMENTS
During the past decade, the total value of property Werdmuller Centre
within the Claremont CBD has risen from R1.4bn in At the time of writing, new
2005/06 to R7.1bn in 2015/16 – an increase of 399% owners New Property Ventures
or R5.7bn. During the past year alone, the value of (NPV) are seeking approval to
demolish the centre and develop
property in the CBD has risen by R1.9bn10. a more commercially efficient,
mixed-use design incorporating
21 500m2 of retail, commercial
and student accommodation.
FIG. 13 MUNICIPAL VALUATION OF PROPERTIES IN CLAREMONT CBD (Rm)
Development of the R450m
R7.1bn project is scheduled to be under-
way within two years.
399% increase or R5.7bn
DRAPER ON MAIN
Draper on Main is Growthpoint
Properties’ next venture in the
R1.4bn Claremont CBD. The 5 500m2
development on the corner
of Main and Draper Roads is
scheduled for completion by June
5
6
7
8
9
0
1
2
3
5
4
6
7
2018.
4/’0
5/’0
6/’0
7/’0
8/’0
9/’1
0/’1
1/’1
2/’1
4/’1
3/’1
5/’1
6/’1
201
201
200
200
200
200
200
200
201
201
201
201
201
City of Cape Town
old MARSHALL HOUSE
The Claremont CBD’s property the early stages of the development process.
Located on the corner of Main
development profile continues to Among these, the Werdmuller Centre is perhaps
Road and Grove Avenue, Old
grow, with 6 new developments the most high profile, as the subject of a
Marshall House is another
scheduled for completion over controversial redevelopment plan. It is seen by
development project by New
the next five years. Some of many as an exemplar of modernist architecture.
Property Ventures. The R140m
these developments are currently Others consider it a prime candidate for
development will comprise office,
underway while others are still at renewed, inclusive development.
retail and accommodation. The
construction is scheduled for
Above:
2019. Proposed
FIG. 14 Proposed Retail
3 500m² Draper Square
Residential
Werdmuller
Centre mixed-use 11>150000
units
m² FUTURE PLANS development
redevelopment Other developments are also
Offices in the early stages of planning,
5 000m² including projects on the current
Food Lover’s Market and the
21 500 m2 Gym
Market Toyota sites. Details are
yet to be disclosed, but we look
forward to seeing these plans
TOTAL AVAILABLE FLOORSPACE in the
WERDMULLER REDEVELOPMENT: 2 000m² progress in the near future. Right:
Current Food Lovers
New Property Ventures Market building
12 13
2016
claremont State of CHAPTER 5
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district report
BUILDING A
The next phase of the MyCiti to design and build with a The Green Building
Council of South
roll-out and the redevelopment commitment to sustainable Africa applies
of the Werdmuller Centre development and construction. the Green Star
SA rating tool to
will catalyse development developments
The 2016 World Building Trends
SUSTAINABLE CBD
opportunities within the that uphold
report revealed that 41% of sustainability
Claremont Public Transport
developers are working on more standards. The
Interchange, that will maximise Green Star SA tool
sustainable, green projects.
the economic contribution of is designed to:
Report respondents indicated
informal traders within the CBD. 1
that over 60% of projects will be Establish a
fully sustainable by 2018 – more common language
Successful urban centres need to be underpinned SUSTAINABLE CONSTRUCTION than the global average of 37%. and standard of
measurement for
by sustainable social, economic and environmental These two examples demonstrate
If this trend continues, South green buildings
Africa will emerge as a global
management and development approaches, which are progress towards a more
leader in sustainable construc-
2
Promote integrated,
three key parts of the Claremont CBD’s growth path. sustainable CBD, but there is still
tion practices. whole-building
a long way to go before Claremont design
Developers in Claremont 3
are among those who are Raise awareness of
The Claremont activity spine
contributing to this trend by the benefits of green
dictates that the commercial building
including sustainability measures
limits will not be moved. 4
into their buildings.
This means that further Recognise
development takes place within environmental
the existing CBD. As a result, Green star-rated leadership
there is likely to be re-zoning buildings currently in 5
Reduce the
and greater densification in the Claremont CBD: environmental
the CBD. While densification is impact of
development
an important urban strategy, it
does need to be supported by 01 / THE CITADEL
positive economic activity and Cnr Cavendish & Warwick Rd
increased social cohesion that 4-star Green Star SA; achieved
also mitigates environmental March 2016 (51 points)
risks. Office Design
Sustainable building features
DENSIFICATION include:
• Water strategy includes low The Citadel development
High-density and mixed-use Dreyer Street market
accommodation facilitates a flow fittings and dual flush
more environmentally conscious, toilets. An air-cooled system 30% have high quality daylight. air, lights and heating/ventilation
Informal traders
sustainable lifestyle for residents. reduces potable water
• More than 90% of all steel • Solid waste management
Building the informal economy demand.
Amenities within walking
distance and easy access to is an important pillar of urban
High-density and mixed-use sourced for the development strategy
public transport allow people sustainability. One method of accommodation facilitates a • Cyclist facilities provided, and
easy access to mass transport
is either recycled/reused steel.
Construction on a brownfield site
• Energy efficient inverter air
to leave their cars at home and achieving this is to include micro-
enterprises and informal traders in
more environmentally conscious, routes and local amenities. mitigates ecological impact.
conditioning
reduce carbon emissions.
formal retail areas. Doing so helps sustainable lifestyle for • Water and electricity me-
• LED lighting throughout
Six new developments are
scheduled to be built over
to provide economic opportunities residents. ters measure and manage 02 / 200 ON MAIN • Green leasing criteria introduced
for emerging traders and consumption, reducing potable 200 Main Road
the next five years in phased entrepreneurs, and builds a more • Ongoing energy monitoring and
water by 28% p/d and energy 4-star Green Star SA; achieved
construction programmes to inclusive, resilient and sustainable metering strategy
by 33% p/a. September 2015 (46 points)
prevent the market from being urban centre. is a fully sustainable urban node.
flooded with new vacancy. • Fresh air rates are increased to Existing Building Performance
Traffic congestion remains a factor,
Many of the new developments The Dreyer Street Market is and many of the older buildings in 15.1l/s/person. Sustainable building features 03 / MONTCLARE PLACE
will be mixed-use in nature, the result of a public-private the CBD are not energy efficient. include: 45 Main Road
partnership to formalise the • Within the office 71% of Preparations underway for 4-star
reflecting current trends • Management strategy for quality
informal trading infrastructure in That said, more South African occupants have access to Existing Building Performance Rating
towards integrating commercial, of indoor environment, including
that area. developers are beginning external views and in addition
residential and retail uses.
14 15
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claremont State of CHAPTER 5
improvement claremont
district report
Sustainable building features • Operating 64% more efficiently
TRANSPORT and
include: than industry in terms of water
• Energy-efficient LED lighting in usage
parking garages, saving 41% www.gbcsa.org.za
• Green leasing criteria introduced
• Indoor air quality management
strategy
05 / THE OVAL
1 Oakdale Road
PUBLIC SPACES
• New system installed for better Submitted for 4-star Existing Inclusive public spaces and accessible transport links lays the foundation for a
trending and HVAC control Building Performance Rating sustainable, cohesive urban environment for visitors, commuters and residents
Expected score: 45 points
Sustainable building features
04 / GROVE EXCHANGE include: FOUR SQUARES PROJECT
Grove Avenue Developed in partnership with Developments
• Green cleaning policy in summary:
3-star Green Star SA; achieved May the City of Cape Town, the Four
2016 (40 points) • Green leasing criteria introduced Squares concept is a project Cavendish
Connect R104m
Sustainable building features • Ongoing energy monitoring and aimed at establishing inclusive
include: metering strategy public spaces throughout the Claremont
Claremont CBD where people Boulevard
• Inclusion of green lease criteria • Indoor environment air, lighting R46m
are able to relax and which
in all new leases and renewals and thermal quality management will also provide venues for Claremont
strategy open-air markets and outdoor Public Transport
• Sustainable procurement Interchange
and purchasing practices entertainment. R38m
• Solid waste management policy
encouraging the use of products
MyCiti Phase 2
that are environmentally The CIDC is implementing the R4.7bn (for
preferable 06 / Vineyard Hotel Grove Exchange City’s policy, starting with the the whole of
Colinton Road refurbishment of the original phase 2)
• Solid waste management
Installing ground-breaking solar cottage on Draper Square -
the green lung of Claremont.
• Green cleaning policy to
encourage use of green cleaning
units to convert and store renewable Sustainability is becoming an Cavendish Connect and Sunclare
energy
chemicals inside building important driver of development Square, Warwick Square and
• Operating 11% more efficiently
The 207-room luxury Vineyard
Hotel has been selected for a
everywhere – particularly in Newry Place complete the picture
for inclusive public spaces.
than industry in terms of energy green demonstration project, urban areas.
consumption subsidised by the Dutch TRANSPORT
INFRASTRUCTURE
government, which will see the Two significant infrastructure
installation of 60 hybrid solar developments have taken place
PowerCollectors. within the last decade: the R38
million invested in the Claremont
The photo-voltaic units convert Public Transport Interchange,
and store renewable electricity which opened in October 20088,
with thermal units that use and the construction of the
renewable energy for heating Claremont Boulevard – a R46m
purposes. Solarus Sunpower’s partnership between the CIDC
PowerCollectors provide both and the City of Cape Town.
solutions in a single unit –
offering greater efficiency while The Claremont Boulevard has
saving space. two aims – relieve the traffic
The installation at the Vineyard congestion on Main Road and
Hotel is the first of its kind create a safe and efficient public
on the continent and marks transport interchange. The Boulevard
Solarus Sunpower’s official entry The CIDC invested R22m into the 8. The City of Cape Town www.capetown.gov.za/en/Pages/MayoropensnewClaremontTransportInterchange
into the African market. construction of the Claremont
16 The Vineyard Hotel CAPE BUSINESS NEWS
172016
claremont State of CHAPTER 5
improvement claremont
district report
R22m:
The amount invested
by the CIDC into the
construction of the
Claremont Boulevard
denser and concentrated
CLAREMONT around efficient and affordable
public transport.
Over the next 16 years, the
City Council wants to see
new developments become a
high-density mix of housing,
shopping, recreational and
transport choices. Residents
should be able to walk,
cycle or use public transport
to get to their destination.
The plan intends for all
FIG. 15 PHASE 2A - PROPOSED MYCITi Rollout plan future development to be
myciti.org.za strategically located around
public transport – either rail or
MyCiTi routes.
Boulevard, which is a relief road The Claremont Boulevard also Phase 2A: Boulevard – serves an average of Under the plan, businesses
running alongside the existing provides upgraded facilities The Integrated 8 200 commuters per weekday.9 and developers will be
Public
railway line. for informal traders within the Transport incentivised to locate new
The original informal interchange
interchange area. Network (IPTN) higher density developments
The Boulevard was designed lacked adequate shelter and
Plan 2032 near public transport routes.
to shift traffic away from Main The public transport interchange Adopted by offered no lighting, seating or
The council has stated a
Road, allowing the two halves of was co-funded by the City of Cape Council in 2014, information signage. There were
it aims to halve clear desire for all future
Claremont – above and below the Town as well as the provincial and no auxiliary or trading facilities. As
the cost of access residential developments to
Main Road – to be reconnected. national governments. the number of commuters grew,
in the coming cater for all income groups in
decades and it became necessary to upgrade
This would allow Main Road to This integrated transport hub – relation to economic and work
continue to drive it to a fully-fledged facility which
become a more pedestrian- which consists of a bus terminus, it down, in line opportunities, to reduce travel
brought all modes of public
friendly environment. With this taxi rank and taxi holding area, with international distances and travel times.
transport together.
in mind, residential development as well as the train station on norms. To this end, the Council has
was located along the Main Road. the other side of the Claremont Over the next five years, the City identified selected parcels of
myciti.org.za
of Cape Town’s transport authority land to create these mixed-
aims to reduce the cost of public development precincts.
transport for all households,
particularly low-income groups
who face a long commute to work
WIFI INFRASTRUCTURE
each day and spend an between new trunk routes – one of which FIG. 16 Commuter numbers (2016 estimate) While there is no official
40% and 70% of household will transport commuters along e trips commuter numbers broadband policy, a number
income on transport. a 25km route between Mitchells of private service providers,
Plain and Claremont. It will take including Neotel and Telkom,
The city plans to ultimately intro- at least five years before the 5 440 2 720 TOTALS have rolled out fibre optic
duce electric buses, which have routes are fully operational. 16 401 cabling in the Claremont
lower operating and maintenance
costs.
8 587 4 249 8 200 CBD. This effective broadband
infrastructure encourages
A new, long-term spatial and
transport plan – the Transit businesses to establish them-
MyCiti Phase 2 Orientated Development 2 373 1 187 selves in the CBD, particularly
Roadworks have begun in strategic framework – has data-dependent businesses
preparation of the roll-out of the Estimated commuter numbers based on such as financial services,
been adopted, aimed at making
MyCiti bus service along two research conducted in 2013 and an annual
Cape Town more compact, fintech and BPO companies.
growth rate in commuter numbers of 5%.
18 9. New Property Ventures, 2016 New Property Ventures (2016 estimates) 192016
claremont State of CHAPTER 6
improvement claremont
district report
Boulevard has awakened a spine
THE CLAREMONT
of activity along Main Road,
and the redevelopment of the
Werdmuller Centre will stimulate
even more economic activity.
Long-term retailers are retaining
IMPROVEMENT DISTRICT
their centres of operation. New
businesses are opening and new
residential accommodation is
being developed within mixed-
use developments.
COMPANY NPC
As we look to the future, we
also look forward to a new
phase of green development
throughout the CBD, supported
by additional transport links
that will reduce congestion and
During the 1970s and 1980s, Claremont enjoyed a high profile, dominating Premier Helen Zille and Chris Drummond at the opening of the Boulevard in 2008
Cape Town’s retail landscape, but changing economic and governance factors
led to the area’s terminal decline. Since it was established, the CIDC has been
the principal guiding hand behind the CBD’s recovery.
During the 1970s and ‘80s, commercial, retail and residential
Claremont’s future looked
assured. However, the 1990s
The focus was not just on the developments. The focus was
heralded a shift in the suburb’s development of new buildings but not just on the development
of new buildings but also
fortunes while new destinations also the refurbishment of existing the refurbishment of existing
flourished across the peninsula
and consumers flocked to
buildings, with public facilities buildings, with public facilities
such as the Claremont Clinic,
malls like Tyger Valley, the V&A such as the Claremont Clinic, the library and public transport
Waterfront and Somerset Mall.
The regeneration of the Cape
the library and public transport interchange, the construction of
Town CBD provided yet another interchange and the R450m the Claremont Boulevard and the
R450m redevelopment of the
alternative destination for MONTCLARE PLACE DEVELOPMENT Pick ‘n Pay site.
businesses and shoppers.
With Claremont located just
There was a growing consensus
that Claremont’s CBD was in
terminal decline. FIG. 17 P
roposed operational budget for 2016/2017
(CID) bylaw was created by local
In the face of growing urban
decay and investor flight,
government in 2000. This allowed
the first two CIDs – the Cape Town 25.3%
admin, rent, general
3%
bad debt
property owners and investors CID in the city and the CIDC – to expenses provision
in Claremont realised that any 10km from Cape Town city centre The new The Claremont CBD is now carbon emissions. The Bus Rapid
be established. and the major regeneration an active urban hub, bringing Transport (BRT) system and the
attempt to upgrade Claremont CIDC
71.7% of the
underway, it was anticipated that building, shoppers, workers and residents University of Cape Town’s (UCT)
would have to be undertaken by
local stakeholders themselves –
The process became known as the
“Claremont Renaissance”. 1.5%
social outreach
budget is
spent on core the suburb would position itself completed back to its centre. transport link play a critical role
business as a premier commercial, retail in 2015 in this regard.
from property developers to street Today, the second wave of
Under the dynamic leadership
vendors. Each group had a vested
of the late Chris Drummond, 19.8% 50.4 %
and residential hub – attracting a
significant influx of new residents.
the Claremont Renaissance is Set in this context, the CIDC’s
interest in an improved, functional urban management underway. work is a crucial element of the
an estimated R1.8bn was and cleansing security
urban environment. Since the CIDC was established, future sustainable success of the
invested in the area. The first The construction of the Claremont
The City Improvement District wave of redevelopment featured Additionally, a special levy is collected every year to pay this vision has become a reality. Claremont CBD.
the construction costs of the Boulevard
20 212016
claremont State of CHAPTER 6
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OUR WORK
SOCIAL DEVELOPMENT
IN NUMBERS together with other NGOs,
the CIDC has significantly
reduced the number of
The CIDC provides top-up services to the City of
homeless adults and
Cape Town. Our work is seen on the streets of
children on the streets
Claremont every day.
by offering alternative
accommodation and
employment opportunities
urban management
THE ROLE
150 grandparents for tea per year
Claremont CBD is 298 social interactions p/month
now largely
OF THE
438 job opportunities created for
we remove an Average of graffiti homeless people
CLAREMONT 40 tons free
13 cases
CID of litter each month, over and above
the litter removed by the Council as
part of the city’s normal cleansing
graffiti removed p/month
The CIDC’s vision seeks to make
service.
24 drains
Claremont CBD the top mixed- cleaned p/month during Crimes such as shoplifting,
use centre in the metropolitan the winter peak season drug-related crime and
area for all stakeholders. This assault have declined
is profound as it gives the CIDC % Ratio of commercial to 66 cases steadily in recent years.
illegal dumping attended to
an ethical base from which residential properties in the
to operate. It requires the Claremont CBD 10 potholes
alignment of property owners’ fixed p/month
PUBLIC SAFETY
81:19
economically-driven needs with
broader social and environmental 3000 waste/bags
needs. collected p/month
Since it was established,
the CIDC has maintained its
emphasis in two areas: improving Business has been vacancy rates have
318
the management of the CBD by
focusing on crime, grime and
retained in the CBD and declined as a result public safety & security
of a Positive take-up
social issues; and upgrading capital flight has of commercial space
incidents solved
the physical environment, by declined sharply throughout the cbd. 8
improving accessibility to the arrests made p/month
area and mobility within it
(achieved by the improved public 48
transport interchange and the traffic, parking & accidents
construction of the Claremont digital & social media attended to
Boulevard); and the physical
appearance and amenity of the 649 Facebook fans 84 Twitter followers 14
20 245 # visitors p/year 437 Tweets to date medical emergency assistance
area.
22 232016
claremont State of
improvement claremont
district report
CIDC BOARD
01 / David Stoll 01. 04 / Neil Gardner Insurance Institute.
She has owned commercial
CIDC Chairman: BA, CA Board member
property in Claremont since
(Scot), CA (SA) Neil is CEO of Gardner Property
2004 and has been a director
Growthpoint Properties Solutions and his GPS Team
of CIDC for eight years.
Limited (Regional Head – is working on several urban
Her background covers mainly
Cape Town) renewal schemes for private
Construction, Civil Engineering
Based in Claremont, David is clients, institutional investors
02. and Commercial business.
Western Cape Regional Head and the listed REITS. Neil was
of Growthpoint Properties Ltd. Deal Origination Manager at Old
He is a Chartered Accountant Mutual Property from 2001 to 08 / Gregg Huntingford
and has over 20 years’ 2014. And Managing Director BA (William and Mary, USA),
experience in the South of Stocks & Stocks Property LLB (Cape Town), MBA (Cape
African property industry. from 1989 to 2000. Town).
Prior to joining Growthpoint in Neil was Managing Director of Gregg is CEO of Spire Property
03.
2007, he was Regional Head Richard Ellis Cape from 1982 Management, a member of
of Investec Property Group in to 1989 the Spire Group. He is an
Cape Town. admitted attorney, notary and
05 / Mike Nixon conveyancer (non practising).
02 / Gavin Hiscock He has over 10 years’
Board member: Senior Board member: New Property
experience in the property
Leasing Manager of Eris Ventures
04. sector. Prior to joining Spire,
Property Group (Pty) Ltd, Mike is a long term property
he worked for Growthpoint
Western Cape. investor and developer with a
Properties and Investec
Eris Property Group is a significant holding of property
Property Group, focusing on
national property company in the Claremont area.
the office sector of these
offering a comprehensive Mike’s property company,
companies’ property portfolios.
range of services to the South New Property Ventures, is
African property industry. Gavin based in Claremont where his
05. Management Team manages 09 / Councillor Ian
has extensive commercial, Iversen
industrial and retail property the company’s commercial
management experience, properties, currently valued at Ian was first elected as a
spanning nearly three over R1bn. Councillor for the City of Cape
decades. Town in 1984. He is currently
06 / Brenda Bibby the Councillor for Ward 59,
03 / Paul Williamson encompassing Claremont,
06. Board member
Newlands, Kenilworth, part
Board member: Service Brenda, Centre Manager of
of Rondebosch, and a small
Co-ordinator Business Areas Cavendish Square in Claremont,
part of Rosebank and UCT. His
Management (Department has over 30 years of property
focus is on financial matters
of Economic Development experience. Brenda also serves
within the City of Cape Town.
City of Cape Town) on the South African Council
He is also a member of the
As the City of Cape Town’s of Shopping Centres Western
Western Cape South African
Business Areas Management 07. Cape Committee.
Local Government Association
Service Co-ordinator, Paul (SALGA), and trustee of
deals with co-ordination of City 07 / Claire Vaskys
the Municipal Councillor’s
services, problem solving in Board member
Pension Fund and of the Cape
the various business districts, Claire comes from an
Retirement Fund.
addressing crime and grime, entrepreneurial background and
managing informal and formal is the shareholder of Phoenix
trading, establishment of 08. Insurance Brokers North, a
business forums and engaging successful insurance brokerage,
with safety and security which was established in
forums. 1994 and has been based in
Claremont for the last 16 years.
She has a Fellowship from the Published by the CIDC, October 2016
Design: Sam Bainbridge, Editing & Proofreading: Hilary Alexander, Infestation www.infestation.co.za
24 09. Research: Sandra Gordon, Pam Golding Properties C25 Stegman Road, Claremont
PO Box 24063, Claremont, 7735
T 021 674 0639
E info@cidc.co.za
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