PROPERTY: Nedbank Unlocks Value In The Cape
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INGENUITY Property Investments is unlocking value in its substantial development portfolio by utilising recent financing from Nedbank Corporate Property Finance, Cape for the refurbishment of two prime properties in Cape Town.
The loan facilities amount to R700 million, of which R336 million will be utilised for new projects, including the refurbishment of the office and retail-based Atlantic Centre on the Foreshore in Cape Town, and Newspaper House, tenanted by Independent Newspapers, in the Cape Town central business district.
The acquisition of Atlantic Centre in Roggebaai was strategic for Ingenuity, given that the fund already owns three other buildings on the same block, including the adjacent Reeds building. The precinct has been earmarked by the City of Cape Town as one of the new growth areas for the city and Atlantic Centre is superbly situated just metres from the new BRT (Bus Rapid Transit) station and the Cape Town Station. Located on the corner of Christiaan Barnaard and Louis Gradner Streets, the Atlantic Centre, together with the Reeds building, provides a valuable 75m frontage onto Christiaan Barnard Street as well as easy access to the N1 and N2. Given its visibility from the Eastern Boulevard, the property is ideally suited to a high profile office block.
As such, Ingenuity will redevelop the site and convert the property into A-grade offices, unlocking the site’s full potential. The redevelopment will entail a comprehensive refurbishment including converting the existing parking level into offices and replacing the current sixth floor with three floors of steel constructed offices. A new lift foyer will provide access for the future development of the other three buildings on the block also owned by Ingenuity. The development of a parking garage component on the four consolidated erven will utilise the full bulk available on the whole site.
Ingenuity also recently acquired a property situated at 122 St George’s Mall in Cape Town, known as Newspaper House, from Independent Newspapers who will be leasing approximately half of the available space on a 12-year triple net lease basis. The property is well located in the CBD and its remarkable saleability was confirmed by the fact that three offers to purchase were received before Ingenuity’s offer was accepted. The building has a loading bay facility convenient for a retailer and negotiations with a number of leading national retailers are underway. The refurbishment includes redeveloping the basement – featuring exceptionally high ceilings due to the old printing presses installed - into two levels of parking. The ground floor will also be opened up to accommodate smaller retail and coffee shops around the existing open garden space.
“The refurbishment of these two strategic property assets backed by finance custom-designed for Ingenuity by Nedbank Corporate Property Finance, will unlock significant value in the fund together with a number of other development projects,” comments Richard Thomas, regional executive Nedbank Corporate Property Finance, Cape. “Ingenuity, a JSE-listed company and a highly valued Nedbank Corporate Property Finance client, already owns assets valued at more than R880 million, which will increase substantially over the next 12 to 18 months as the new developments and refurbishments are completed.”
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