Octodec redevelopments worth R537m contribute to Pretoria CBD rejuvenation
JSE listed REIT Octodec is undertaking two new exciting development projects, 1 on Mutual and Centre Forum, for a total value of R537m. These projects will enhance its portfolio and contribute positively to urban renewal in the Pretoria CBD.
Jeffrey Wapnick, Managing Director of Octodec, commented: “We are passionate about the Pretoria inner city and are proud to play a part in restoring South Africa’s capital to a vibrant epicentre of culture, arts, government and business.”
1 on Mutual broke ground in June last year and is a R161 million mixed-use development situated just off Church Square. On the commercial side it will consist of 400m2 of prime office space and a 1550m2 quality retail offering. In addressing a requirement for more upmarket accommodation in the CBD, this development will include 142 modern city apartments encompassing bachelor, one and two bedroom units. The building will also provide 210 much needed parking bays.
The red-brick Volksbank heritage building will be included in this impressive mixed use development, and in embracing the city’s legacy, the outside façade of the building will remain unchanged. The double-storey office building will be refurbished internally and an outside landscaped courtyard will be created between the existing and the new building. A new arcade, linking 1 on Mutual to the existing Capitol Towers building will offer further retail opportunities.
1 on Mutual is scheduled for completion in April 2016 and represents a favourable forward yield.
“National retailers have already expressed interest in the retail offering available at 1 on Mutual and our offering of more upmarket residential accommodation is in demand. This new development will be popular with upcoming young urban professionals who are looking for a place to work, stay and play in the city.
Centre Forum, a convenient shopping destination for those who frequent the area between Lilian Ngoyi, Struben and Johannes Ramokhoase streets will be redeveloped into a people friendly residential and retail hub in close proximity to where Tshwane House is to be erected. The gross floor area of the retail component will comprise almost 5000m2. Two parking levels will accommodate up to 258 parking bays and the residential section will offer 400 modern, upmarket city apartments with a choice of bachelor, one or two bedroom units.
This R375m project commenced in January of this year and is estimated to be completed in mid-2017.
Jeffrey Wapnick, Managing Director of Octodec concluded: “These developments are in line with our strategy to unlock value and continue delivering above average returns for our shareholders.”
Instinctif Partners: 011 447 3030
Louise Fortuin: 071 605 4294
Frederic Cornet: 083 307 8286
NOTES TO EDITORS
Octodec is a Real Estate Investment Trust (“REIT”) listed in the “Real Estate Holdings” sector of the JSE Limited (“JSE”) and invests in the retail, industrial, office and residential property sectors. Following the merger effective 01 September 2014, Premium Properties and IPS Investments became wholly owned subsidiaries of Octodec with the combined portfolio comprising 325 properties mostly located in the Pretoria and Johannesburg CBDs and valued at approximately R10 billion.
Jeffrey Wapnick, the Managing Director of Premium Properties and Octodec Investments since 1998, is responsible for the effective management of both companies with a strong emphasis on the upgrades and redevelopment of properties. He holds various other directorships of unlisted companies including IPS Investments Proprietary Limited and City Property Administration Proprietary Limited where he is the Managing Director. He is a member of the risk committee of Octodec Investments Limited.
The Wapnick family has a long history of experience in the property industry and holds a significant stake in Octodec, aligning their interests with those of minority shareholders. Management have played an integral role in the running of the portfolio for over 15 years and therefore has an intimate knowledge of every asset and solid relationships with tenants. The companies along with City Property, as the property and asset manager, are focused on and committed to the continued investment into the Johannesburg and Pretoria city centres because of the higher yield and growth potential.