An Irish developer is one of the key people behind a landmark development in Cape Town's inner city - where apartments are for sale from €285,000. Kate McMorrow reports
Buyers have an opportunity from today to book a place in an Irish-driven Cape Town scheme which locals believe will change the face of their city.
Christies' Donnybrook office is handling sales of Mandela Rhodes Place, an exciting new development that promises to transform the "Old Town" into a bustling cultural hub within the city.
The 500 million Rand (€63m) project is by Eurocape Developments, a company chaired by Irish developer Frank Gormley of Howard Holdings. The term 'landmark development' is often misused, but not with Mandela Rhodes Place, which incorporates seven historic buildings bought less than two years ago by Gormley's team.
This is the largest inner city scheme yet attempted in Cape Town and is expected to have a domino effect on housing trends, in much the same way that Temple Bar drew people back into the centre of Dublin.
The new redevelopment falls within the city's designated tax rebate area, so a percentage of the rental income will be exempt from tax.
The designated area for the new venture is located opposite Parliament Buildings and The Company's Gardens, close to Green Market Square at the top end of St George's Mall.
Developers Eurocape are working in partnership with a number of civic and commercial bodies in the renaissance of the Old City, among them Cape Town City Council, The Heritage Trust and The Mandela Rhodes Foundation. The Foundation headquarters will remain in the area as the only building not part of the overall re-development.
Billed as a global trophy address on a par with New York's Trump Towers, Mandela Rhodes Place is the beginning of a Capetown city centre revival that has caught the imagination of the local population.
About 100 apartments have already been sold, a good half snapped up by Cape Towners when the project was launched recently.
The remaining half were bought by canny overseas investors, who saw the value of getting in at the beginning of such a ground-breaking development. Christies is now selling another 25 units on the open market, spread between an Art Deco period building and the contemporary tower block.
Prices have gone up since the initial phase and are high for South Africa - on a par with new developments in this country, although you do get a lot more square footage for the money.
One-bedroom apartments start at €285,000 for 73 sq m (786 sq ft) of living space. Two-bedroom units of 87 sq m (937 sq ft) cost from €296,000. Larger two-bedroom apartments of 109 sq m (1,173 sq ft) start at €450,000 and 145 sq m (1,561 sq ft) apartments cost €750,000. Prices are fixed in South African Rand and may fluctuate according to exchange rates.
The fit-out is impressive by international standards. Floors are washed oak, stone, natural Panga wood and honed mosaic, worktops are granite and bedrooms will be carpeted.
Lighting will be at designer level and 'smart' cabling will be installed. Kitchen appliances are also part of the package.
A five-star hotel, leased by the international Sofitel chain, will supply a concierge service to tower residents and a pool will be located on the top floor, along with a gymnasium, wellness centre and clinic. A working winery is also planned for the complex, several restaurants and retail outlets selling upmarket branded goods under the Provodores label.
Two free parking spaces are allocated for Towers residents and one for owners elsewhere on the complex. Mandela Rhodes Place is expected to be ready to move into by April 2006.
Finance has been arranged with three major South African banks, which will lend a maximum of 50 percent of the purchase price. Interest rates are notoriously high in South Africa, so buyers may prefer to source finance elsewhere. However, borrowing in the local currency would be advantageous if owners intend to rent out their apartment.
Developer Frank Gormley of Howard Holdings and Eurocape has a strong track record in redevelopment in Ireland and in the UK, with Lapps Quay in Cork among his previous projects.
