August 10, 2005
By Lucille Davie
THREE more buildings in Joburg's central business district are to be converted into apartment blocks, one of which is a development in a joint venture between Old Mutual Properties and City Property Administration.
The New Plaza building in Jeppe Street will be converted into 211 flats, to be ready for occupation in early 2006. It is to be called Plaza Place, and will contain 78 bachelor, 93 one-bedroom, 12 studio, six duplex, and 22 two-bedroom units. Rentals will start at R1 500 a month.
"Old Mutual Properties is hoping its joint venture with City Property Administration to convert existing office buildings into apartments will play a significant role in accelerating revitalisation of inner Johannesburg," says Ben Kodisang, the company's managing director.
His company recently sold two of its buildings to property company Urban Ocean - the 11-storey Art Deco Shakespeare House and the neighbouring 10-storey CNA building. Both are older than 60 years. The buildings will be converted into residential units with retail outlets on the ground floor.
Kodisang says that the joint venture and refurbishment of other buildings in the CBD, including the once-glorious Barbican building, on the corner of Rissik and President streets, was prompted by several developments.
"One is the progress made by the Central Johannesburg Partnership, the Johannesburg Development Association and the City authorities in revitalising the CBD and in improving security there."
Old Mutual Properties has identified another three buildings for redevelopment, including Persam House in Bree Street. This building will be converted into about 180 flats. Old Mutual plans to create more than 1 000 residential units in the inner city.
It owned about 40 buildings in the area, but over the past three to four years has sold about 28 of them. Some have been allowed to become run down, and have been roughly bricked up to prevent squatters from entering.
An example of this is the Barbican, a beautiful building about which many residents feel particularly passionate. Old Mutual is not planning to sell the building but will be refurbishing it in the future, incorporating the surrounding vacant block.
Urban Ocean's acquisitions
Urban Ocean's latest acquisitions bring its portfolio of inner city buildings to 10, says director Alfonso Botha.
Because of the ages of Shakespeare House and the CNA building, permission will have to be obtained from the Provincial Heritage Resources Agency before restoration can be undertaken. This was also the case with some of its other acquisitions.
Says Botha, "We are very sensitive to the heritage aspects of the buildings." Most of them have been mothballed in recent years and have been identified by the City as "sinkholes". "The buildings have been a liability to the City."
Urban Ocean has been involved in inner city rejuvenation over the past two years, with its most significant acquisition being the historic Corner House, on the corner of Commissioner and Simmonds streets. It is to be turned into 15 luxury loft apartments, offices and 52 hotel rooms.
Another acquisition is the old Ernst & Young building. It has been renamed The Franklin and is to be turned into 135 residential units. No 1 Rissik Street has also been acquired to be turned into residential space.
300 residential units
Botha says Urban Ocean plans to create about 300 residential units in the 10 buildings it owns. He feels that collectively this is "still not enough" residential space in the CBD.
"There are 70 000 white collar workers in the inner city, and together with the Gautrain development, there'll be plenty of people to occupy this space."
Construction on Shakespeare House and the CNA building will start in the new year, with the buildings available for occupation from mid-2006. The units will sell for R399 000 to R699 000.
Although a major investor in the CBD, Botha is reluctant to reveal the extent of Urban Ocean's investments.
He says that until a year ago he felt like a "lone ranger" in the city, but other developers are moving in. Brian Green is converting an office building in the CBD into residential space.
Gerald Olitzki has been buying buildings and revamping them for the past 15 years. His major triumph was restoring Gandhi Square into a pleasant people place.
While acknowledging that the city is not perfect, Botha is confident that Joburg
will be successfully revived through efforts like his and others.
The Financial Mail recently reported that 31 high-rise office buildings were being refurbished for residential occupation.
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