July 21, 2005
By Anish Abraham
REGENERATION in Johannesburg's inner city will be given a much-needed boost when Executive Mayor Councillor Amos Masondo launches the Urban Development Zone (UDZ) on 18 August.
Fittingly for an incentive aimed at improving the inner city, the launch will take place at the Parktonian Hotel in Braamfontein, during a conference that runs from 18 to 20 August.
The conference is being held for interested parties to gain more information about the benefits of the tax incentive aligned to the UDZ from several experts.
The Joburg UDZ
Among those expected to attend are representatives from the property sector and investors in inner city properties.
According to Lebo Ramoreboli, a project consultant for area regeneration in the City's Economic Development Unit , the UDZ tax incentive is aimed at encouraging investment in inner cities in all the country's major cities.
Under the incentive, tax-paying investors located within the designated area are allowed to deduct from their taxable income, their entire investment in refurbishing the property over a period of five years, at the rate of 20 percent.
For new property developments, the deduction amounts to 20 percent in the first year, and 5 percent a year over the next 16 years.
National Minister of Finance Trevor Manuel identified Johannesburg as the largest UDZ in the country, comprising almost 18 square kilometres of residential, industrial and commercial areas in and around the central business district.
The zone covers the central business district, Newtown and Braamfontein, as well as the high-density, high-rise residential areas of Hillbrow and Berea.
Lower-density residential districts in the general Ellis Park area, like Bertrams, Judith's Paarl, Doornfontein and Troyeville, as well as Bellevue, Bellevue East and Yeoville, also fall into the approved area.
In addition, the manufacturing and industrial strip to the north of the M2 East/West freeway, from Benrose in the east to City West in the west, is part of the zone.
Masondo had earlier hailed the proclamation of the zone as a major contributor to the future of Johannesburg's city centre, saying it complemented efforts undertaken by the City and the provincial government.
"The UDZ incentive allows for far more private sector investment than before, and makes redevelopment of existing building stock far more attractive and financially viable for property owners," he said.
There will be an interactive expo at the conference that will allow City officials to network with property investors, owners, architects, planners, quantity surveyors, engineers, brokers, agents and interested members of the public, to give detailed explanations of how the tax incentive works.
Ramoreboli said since the proclamation of the zone in October 2004, the City had received inquiries from more than 120 individuals and companies interested in taking advantage of the tax incentive.
There had been 30 registrations by individuals and companies who were spending between R100 000 and R400-million on refurbishing buildings within the zone, she said.
To feature inner city property up for sale or any property-related services and products at the conference, contact Angela Davies from Finlay and Associates on 011 807 4724 or angela@finlay.co.za
For information on the tax incentive, contact Lebo Ramoreboli on 011 358 3442 or lebor@joburg.org.za
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