November 30, 2004
By Hannah Dawson & Lucille Davie
INVESTORS are being invited to buy buildings for refurbishment in what is to become the core of Jozi's fashion industry - a square and fashion house - as part of the City's drive to revamp buildings in the downtown Fashion District.
The District incorporates an area of some 26 city blocks on the eastern end of the CBD, bounded by Jeppe, End, Commissioner and Von Weilligh streets. It houses over 100 fashion-related businesses, including Cut, Make and Trim operators, a budget clothing retail industry and studios of several emerging and established designers like Clive Rundle. The core will be located as a square in the northern section of the district.
"This is a council initiative, and what is critical is the long-term sustainability of the district," said Graeme Reid, CEO of the Johannesburg Development Agency (JDA), the overseeing body of the development. He was speaking at the announcement on Monday, held primarily to interest potential investors.
The Johannesburg Property Company (JPC), the property arm of the City, has been brought on board to help identify buildings for potential investment.
The key element of the development is the identification of "bad" buildings - buildings that have diminished in value because of overcrowding by squatters. Such buildings are then taken over by the JPC and made available to potential investors. These new investors are tasked with removing the occupants, and renovating the building, and maintaining them to JPC standards. The JPC has a database of 183 interested investors, and has identified 52 bad buildings in the inner city.
Some 32 buildings in the fashion core - with a total floor area of 120 000mē and a combined value of R30-million - have been identified as potential investments. Some of the larger buildings have a vacancy rate of between 35 and 65 percent, while many buildings are completely vacant above the retail ground floor. Most of the buildings are in a state of disrepair and are expected to sell for between R800 000 to R1,5-million.
It is hoped that the creation of the square and fashion house will boost investment in the district. The square will be located in the block between Pritchard, President, Troye and Polly streets, created by the demolition of one building and framed by four buildings, one of each corner of the square. It will contain a large, open fashion ramp which will form a permanent feature, and a venue for fashion events. Restaurants and entertainment venues will also enhance the functionality of the square.
The square will integrate with the surrounding buildings, which will be refurbished and adapted to provide attractive frontage on to the square.
Leila McKenna, managing director of the JPC, says the Fashion District "represents an area of vibrant activity and intriguing buildings such as the residential studios of Fine Art House and the eye-catching of Gallo House".
The JPC will purchase a building in the fashion core to be used as the Fashion House, housing a production house consisting of a number of CMT operators, and complementing the activities of the nearby SewAfrica Fashion Hub, an incubator project developing clothing design skills, and the Fashion Shack, a retail outlet for local designers.
It is hoped that the Fashion District will become a "vibrant and unique centre of economic activity if the private sector joins the City in its vision", says Sthembiso Mntunwa, general manager of property development at the JPC.
"It may take some time, but the Fashion District initiative promises to meet the City's vision to consolidate and develop the 'Urban Edge of African Fashion' in this area that once housed many leaders in the fashion and clothing industry. With the strategy on the table, JPC and JDA should be able to realise the potential for the City," he added.
The district has been demarcated by mosaic stitch patterns running up pavements and tall stitch gateways at its entrances. Development of the square and Fashion House will begin within the next few months.
For investment information, contact JPC Fashion District project manager Alan Dinnie on 011 339 2700 or 083 631 4409 or Thembi Vanqa on 011 339 2700.
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