2016 REPORT and CAPE TOWN 01 in GENERAL EXECUTIVE SUMMARY Welcome to the Cape Town Central City, Within Ithe CCID’S Boundaries

01_SOCC16_PIC.indd 1 2017/04/09 10:48 PM INTRODUCING THE 2016 REPORT AND CAPE TOWN 01 IN GENERAL EXECUTIVE SUMMARY Welcome to the Cape Town Central City, within ithe CCID’s boundaries. These A major catalyst for this is expected to be and to the fifth edition of our annual “neighbourhoods”, in many ways, have the City of Cape Town’s Foreshore Freeway investment guide, this time looking at now evolved into their own personalities Precinct project, which has generated 2016 in review. and the business done within each of much discussion and interest both in how This publication is compiled and them has evolved as well. to incorporate affordable housing into the brought to you by the Cape Town Central The usual synopses still exist among CBD to ensure that it can provide homes City Improvement District (CCID), an this publication's pages, but as it has for all tiers of its economy, and as a model organisation that has been the custodian always been an investment guide to to relieve traffic congestion. of the city’s traditional CBD since 2000. assist investors to make well-informed At the end of the day, a downtown’s The economic growth and prosperity our decisions, we hope it will now assist success can only be measured in terms of downtown has witnessed in the past those decision makers, across the how it meets the demands of the people 17 years has been extremely gratifying, broadest economic spectrum, to drill who use it. To this end, we believe many but the rise in investor confidence we down to discover even more about the opportunities still exist, whether they lie have witnessed in just the past five CBD. In this way, they can make even in creating the type of commercial space years, since the first report (looking better investments that also meet the that both corporates and coworking back at 2012), has been nothing short need and desires of other stakeholders entrepreneurs seek, or the type of retail of breathtaking. who live, work, place, visit or stay here. that will bring office workers and residents We owe huge thanks to each and into the streets to safisfy the expectations every stakeholder who has placed their of their purchasing power. All of these confidence in the Central City, whether “This edition takes the data we work together to continually invigorate they be property owners, members of the Central City to be a high potential, have accumulated and uses it to public or private enterprises, or parents high opportunity economic node. who have brought their children into the intensively dissect the Central CBD to attend an event. City into the four precincts We would also like to thank the many that exist within ithe CCID’s entities and organisations that have boundaries.” contributed their own valuable data and insights into this report, from the City of Cape Town and Western Cape Like many other global downtowns, Government to private enterprise. ours is seeing the rise of the millennials. This edition takes the data we have Likewise, we are starting to see much- TASSO EVANGELINOS ROB KANE accumulated over many years and uses needed densification take root, as we CHIEF EXECUTIVE OFFICER: CHAIRPERSON: CAPE it to intensively dissect the Central give rise to the vertical city, on both CAPE TOWN CENTRAL CITY TOWN CENTRAL CITY City into the four precincts that exist a commercial and residential front. IMPROVEMENT DISTRICT IMPROVEMENT DISTRICT

02_03_SOCC16_DOING_BUSINESS.indd 2 2017/04/09 10:55 PM THE STATE OF CAPE TOWN CENTRAL CITY REPORT 2016 INTRODUCING THE 2016 REPORT AND CAPE TOWN IN GENERAL

ACCOLADES FOR CAPE TOWN

100 RESILIENT CITIES NETWORK: Cape Town was one of the 37 newly selected cities that joined the 63 existing cities that form the 100 Resilient Cities (100RC) Challenge. The programme is aimed at helping cities build resilience to social, economic and physical challenges in urban CAPE TOWN’S WEATHER | AVERAGES environments. Best metro for ﬁ nancial management 17°C 475mm 48.33mm 8.7hrs 111 by Ratings Afrika. This award was based Temperature Annual Monthly Daily sunlight Annual number on a survey of all South African metros. precipitation precipitation of rainy days “Best value long-haul Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec destination in the world” AVERAGE HIGH 25 25 24 22 19 17 16 17 18 20 22 23 (2016 UK Post Office Travel Money Report) TEMPERATURE (°C) LOW 17 17 15 13 11 8 8 8 10 12 14 16 AVERAGE NUMBER ONE IN THE CATEGORY “TOP PRECIPITATION 20 20 30 50 70 90 100 70 50 40 20 20 CITIES IN AFRICA AND THE MIDDLE EAST” (MM) (Travel and Leisure 2016 World’s Best Awards)

“Luxury travel destination of the year in Africa and the Middle East” CAPE TOWN IN CONTEXT (Luxury Travel Guide) The Cape Town Central City (an area covering 1.62km²) is the traditional downtown of the metropole of Cape Town, which itself is situated in the Western Cape province of South Africa. The following gives some background to the context “Best city in the world” in which each of these destinations ﬁ nd themselves, and provides a deeper (Telegraph Travel Awards – Vancouver understanding towards the Central City. and Venice took second and third place) as well as “Cheapest long haul destination” Cape Town’s gross geographic product R3 069.817 R424.377 (GGP) as a percentage of the National 9.9% GDP (the second-highest metro in the Among Lonely Planet’s Best Travel Guide's billion billion "Top 10 cities to visit in the world” South Africa’s Western Cape’s country, with Johannesburg 15.39% GDP GDP and eThekwini 9.2%) “Best city for restaurants and bars” CAPE TOWN’S HIGHEST GROSS VALUE-ADDED (GVA) SECTORS IN ITS ECONOMY (Condé Nast Reader’s Choice Awards) 35.5% 17.2% 16.9% 13.3% 11.1% Finance Community Trade Manufacturing Transport services

POPULATION (AS AT 2015) 54 956 920 6 200 098 3 957 798 South Africa Western Cape Cape Town

UNEMPLOYMENT Number one for the “Best winter vacations of 2016” (Condé Nast Traveler). Cape Expanded unemployment: of the 8 879 779 LITERACY Town was selected as the number one 462 442 unemployed people in South Africa during favourite destination to visit in the northern the second quarter of 2016, 462 442 lived in 83.3% 92.5% hemisphere’s winter. Condé Nast Traveler Cape Town. While the official unemployment noted that Cape Town, as a cosmopolitan city, National Cape Town’s has prime weather conditions during this time rate for South Africa during 2016 averaged literacy rate literacy rate around 26- to 27%, in Cape Town this figure (December to March), with the restaurant, stood at an average of around 21%. hotel and nightlife scene at its best, rivalling report, Quarter 2 (April – June) Town Cape Indicators for Economic Performance SOURCES: City of Cape Town and www.cape-town.climatemps.com 2016; www.weatherbase.com major European and American metropolises.

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INThe following fi guresNUMBERS give an overall viewpoint of private and public enterprise across the entire Central City as these stood in December 2016 when research undertaken1 for this publication was analysed. These numbers are broken down further in EMPLOYMENT & Section 2 of this publication (containing high-level overviews of various sectors), RECRUITMENT as well as precinct-by-precinct in Section 3 in order to refl ect the specifi c 40 AGENCIES nature and characteristics of the four different “neighbourhoods” in the Central City. 97 EDUCATIONAL INSTITUTES & RESOURCES 82 3 12 BUSINESSES IN THE CBD Education Libraries Museums The following indicate in which categories and subcategories the 3 061 entities doing business in ARCHITECTURE, the Central City operate. These 92 ENGINEERING & SURVEYING exclude government facilities, THE VALUE OF which are listed elsewhere on these pages. 53 32 7 CENTRAL CITY PROPERTY Architecture Engineering Surveying The City of Cape Town’s most recent offi cial property valuations report (as at 2016-17) shows the overall nominal FINANCE, INVESTMENT, value of all property in the CBD to be 217 INSURANCE & BANKING R30 628 149 724 R30 628 149 724. 30 25 103 36 23 In addition, to this, there is currently Accountants Business Financial Insurance Investment (conservatively) R12.086 billion of development services & brokers companies property currently under construction, banking planned or proposed for the Central City, to be completed by 2020 (and including ACCOMMODATION those that were completed late in 2016). 297 172 & TRAVEL ENTERTAINMENT (INCLUDING CLUBS, Accommodation THEATRES, BARS & EATERIES) 65 venues (including student hostels)

11 69 4 209 4 Embassies Adult Bars & Conference Eateries Theatres or 21 entertainment clubs venues inside (see more places of complexes below) performance 86 Travel services FREIGHT, CUSTOMS BROKERING, 54 SHIPPING & IMPORT/EXPORT 12 12 30 37 Freight Import & Shipping ART & DESIGN 1 The external and independent resources forwarding export companies STUDIOS that have been used throughout this publication are sited in Sections 2 and 3, as & customs well as in the acknowledgements at the end. brokering

or 62% are RESTAURANTS, of which EATERIES or 33% are open after OF 131 11 (8%) also function as bars/clubs OF 69 18h00 There are 209 eateries THESE: or 22% are FAST FOOD/TAKEAWAY THESE: whose primary function or 8% are open seven 45 OUTLETS is to serve food. 16 days a week 33 or 16% are COFFEE SHOPS 4

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GOVERNMENT FACILITIES RETAIL THERE IS A TOTAL OF 182 GOVERNMENT Of the 627 retail outlets, the top 20 retail types are (by numbers of venues): FACILITIES, BROKEN UP INTO: Total number Total number of government of general public Clothing 137 NATIONAL PROVINCIAL LOCAL employees: using these Jewellery 75 22 638 facilities daily: Furniture, lighting & decor 56 109 38 35 29 317 Motor & related 49 60% 21% 19% Hair salons 47 Galleries 31 Cellphones & accessories 27 Specialty 26 COMMUNICATIONS, Superettes (independent) 22 79 MEDIA & ADVERTISING 58 Electronic, photography & music 20 PROPERTY & Health & beauty 19 REAL ESTATE 32 29 18 Curios 17 Communications Film & TV Media & advertising companies companies Sports & outdoors 16 Books, cards & stationery 12 678 GENERAL CORPORATE OFFICES 40 Liquor 12 LEGAL SERVICES 28 (INCLUDING HEAD OFFICES) HEALTH & BEAUTY Hardware & locksmiths 11 (FROM ADVOCATE (INCLUDING SPAS Department stores (national chains) 10 OFFICES TO LAW 7 10 8 3 & GYMNASIUMS) Printing, copying & lamination 10 FIRMS) Corporate Energy Food Mining Tailors 7 head offi ces companies companies companies Eyewear/opticians 6 SPECIALIST SERVICES The balance of 17 outlets include MEDICAL 189 those dealing in adult entertainment, Courier Other specialist 96 PRACTICES plumbing & bathroom fi ttings, postage services services companies 5 184 & courier, fabrics & haberdashery, NPOS, INDUSTRIAL auctioneers, DVD rentals, fl oristry, 102 COUNCILS & PARASTATALS and educational toys. 22 39 6 10 25 Industrial Non-profi t Parastatals Political Religious councils organisations parties services/ places of worship COMMERCIAL RETAIL SALES, ADMINISTRATION, 654 MANUFACTURING & DISTRIBUTION & RETAIL SPACE Clothing Retail Retail total rentable 19 manufacturers 627 (see top 8 administration 1 042 605m² commercial & distributors right) space available in the CBD, of which 105 319 was available at December 2016 ICT & TELECOMMUNICATIONS the average occupancy 131 (INCLUDING CALL CENTRES) 91% rate across all grades of commercial property in Q4 2016 37 71 23 (up from 90% Q4 2015) Call centres ICT Telecommuni- cations 279 579m² total rentable retail space available in the CBD, of which it was estimated 95% was occupied as at Dec 2016

In December 2016, there were 116 units available to LIVING IN THE CENTRAL CITY During 2016, a total Average Average Average rent, against the following average rentals per month: There is currently a total of number of 228 units price size price 57 RESIDENTIAL COMPLEXES, were sold against per unit per unit per m² STUDIO/ ONE TWO THREE including those under construction a total value of R533m. R2.337m 71m² R33 921 BACHELOR BEDROOM BEDROOM BEDROOM as of 31 December 2016. R10 608 R15 081 R22 290 R27 500

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WORKING IN THE CAPE TOWN CBD ENTREPRENEURSHIP AND With the Central City being a services- business services and retail sectors – BUSINESS START-UPS driven centre, it is no surprise that again, all strongly represented in the hospitality, finance and business Central City. According to Wesgro CEO Tim Harris, services1 drive its economy. It is also in The legal sectors continue to retain Cape Town has become Africa’s largest the CBD that the highest concentration a strong presence as well, from the startups scene. Homegrown companies of government services (municipal, hundreds of offices of advocates that from Cape Town are moving into Africa and regional and national) exist in the Cape service the Western Cape division of the going global. These include online retailers Town metropole. High Court of South Africa (situated in such as Takealot* and Zando, as well as In addition, investment in real estate the heart of the CBD in Precinct 3) to the mobile payment solution company Yoco*, in the area has seen a dramatic increase numerous head offices of some of South online education provider GetSmarter and over the past few years (see Residential Africa’s largest law firms (predominately nutrient recycling business AgriProtein*. Development on pg 14 and Commercial situated in Precinct 1). Giving Cape Town the edge was its Property on pg 15) and, in support, the The call centre industry is growing infrastructure base and strong skill set architecture and engineering sectors steadily year-on-year in the Central City, drawn from the city’s four universities, play a large role in the CBD in terms of which is proving to be particularly popular which collectively produced about their office presence. Likewise, several as an offshoring destination. Meanwhile, 12 000 graduates each year in science, educational institutions are located the sectors that have been particularly technology, engineering and mathematics. throughout the CBD, while one of the targeted for growth are those servicing country’s largest – the Cape Peninsula the medical industry, due in no small part *The head offices of Takealot, Yoco and AgriProtein are all three based in the Cape Town Central City. University of Technology – lies right on to the opening in 2016 of the state-of- its boundary. the-art new Netcare Christiaan Barnard Of the main sources of growth Memorial Hospital in the Foreshore recorded for Cape Town in the second (Precinct 1). The opening of this facility is GOVERNMENT SERVICES quarter of 2016, improvements were the first phase of development in this area noted (among others2) in the transport that will culminate in the establishment of IN THE CBD and communication, financial and a world-class medical precinct. There are an estimated 182 government services in the CBD across local, provincial and national government, of which 113 are accessible to the 1 These are three of the seven industries in which the City of Cape Town has the biggest comparative advantage public. There are an estimated 22 638 employees, compared to South Africa as a whole. The other five industries are fishing, clothing & textile, wood product manufacturing, electronics and furniture. and an estimated 29 317 users are serviced each 2 The other areas of growth in the city being manufacturing and wholesale. day on average.

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The Cape Town Central City accounts for 25% of the metropole’s entire economy and over 30% of its workforce. Together with the approximately 3 061 private businesses, 182 government CALL CENTRES service ofﬁ ces, there are an estimated 900 informal traders. AND E-COMMERCE

According to fi gures released by BPeSA, BREAKDOWN OF BUSINESSES IN THE CENTRAL CITY there are 37 call centres in the Cape Town The following is the breakdown overall of the primary formal business sectors in Central City. This is a sector poised for future the Central City, and includes all sectors other than government services. investment, particularly as e-commerce grows from strength to strength. The City of Cape Town’s most recent Economic Performance Indicators (EPIC) report, for Q3 of 2016, has revealed that Cape Town is doing exceptionally well in establishing itself as a “seedbed” for 172 92 37 79 emerging e-commerce companies and is widely considered to be a tech and Accommodation Architecture, Art & design Communications, e-commerce hub within South Africa. & travel engineering media & Cape Town, therefore, accounts for the & surveying advertising lion’s share of the headquarters of the most well-known e-commerce companies in South Africa, many of which are situated in the Central City. Factors that have underpinned the area’s attractiveness to e-commerce companies include the city’s appealing lifestyle, an 97 40 217 54 extensive network of supporting companies and institutions (including payment Educational Employment Finance Freight, customs gateways), software developers and tech institutes & & recruitment (incl investment, brokering, shipping incubators, a strong supply of ICT skills, insurance, business resources agencies development & banking) and import/export and better venture capital than in other parts of the country. In terms of the latter, 75% of all venture capital deals in 2015 were in the Western Cape, according to the Southern African Venture Capital and Private Equity Association. Due to these call centres often servicing areas in other time zones, CBD-based 28 40 131 678 employees make up a signifi cant portion of the Central City’s nighttime economy. General Health & beauty ICT Legal With many staff currently relying on (incl gymnasiums) corporate offices (incl telecoms and call (incl advocate offices private transportation (including taxis) after centres) and law firms) (incl head offices) hours, this sector of the CBD economy could increase substantially once safe and affordable public transportation increases in terms of both volume and daily operating hours. Along a similar vein, further development for housing that is affordable and close to places of work may also have says Wesgro", Engineering News , 18 August 2016) says Wesgro", 189 an impact on the development of residential 96 102 58 and lifestyle retail in and around the CBD, Medical NPOs, industrial Property & Specialist as investors turn their sights towards practices councils & real estate services accommodating the millennial generation parastatals that now drives many downtown economies. Further, according to EPIC, while estimates of the size of the local e-commerce industry Retail – general Retail1 – entertainment may vary, forecasts for its future growth (incl sales, administration (incl clubs, theatres, bars are quite similar. In 2016, Worldwide Worx 654 offices, manufacturing & 297 & eateries) predicted a doubling of online purchasing distribution) between 2016 and 2020. Deloitte shared 1 As the after-hours/leisure market is a large component of business in the CBD, we have distinguished the same sentiment, with estimates that between venues that can be classifi ed as “Retail – entertainment” (ie, clubs, bars and restaurants) as opposed to “Retail – general” (all other retail outlets as well as administrative offi ces, distribution or manufacturing). the industry will more than double its share

report, Quarter 2 (April – June) 2016]; Economic Performance Indicators for Cape Town SOURCES: City of Cape Town on track to be the start-up capital of Africa , "Cape Town Retail outlets are deemed to be any business that carries inventory and sells this on to a customer. of retail sales by 2020.

06_07_SOCC16_DOING_BUSINESS.indd 7 2017/04/09 11:13 PM CENTRAL CITY CONNECTIVITY WORKING IN PARTNERSHIP With the global emphasis on "smart cities", it is internationally recognised that a city is deemed to be smart in terms of the emphasis it places on human capital, social cohesion, economic development, public management, good governance, environmental performance, mobility and transportation, urban planning, international outreach, and technology. The Cape Town Central City is making huge strides towards these goals through a number of successful partnerships that exist between various organisations and the projects that are being piloted in the CBD by those entities – all of which collectively connect the area’s stakeholders to crucial local, regional, national and international economic influencers and role players. The following highlight key partnerships and projects.

Planning and Urban Design, Geomatics 2016 to assist with the initial phases of THE CAPE TOWN CENTRAL CITY & Geographic Information Systems (GIS), this project, which involve: pedestrian IMPROVEMENT DISTRICT (CCID) the Corporate Service Directorate and counts; stabilisation of the area in terms AND THE CITY OF CAPE TOWN the Transport and Urban Development of safety and the rendering of cleaning In its day-to-day mandate to ensure the Authority (TDA). and beautification services; documenting Cape Town Central City is “safe, clean, However, to strengthen the value the current physical state and challenges caring and open for business” via the proposition of the CBD, the CCID has of the space, and presenting ideas provision of top-up services to CBD during the course of the past two years for improvement based on local and property owners, the CCID and its four also developed relationships with other international best practice examples; and departments liaise extensively with the City departments across a number of various surveys conducted with formal primary service providers at the City pilot projects, including the following. businesses, kiosk owners and users of of Cape Town, namely the municipal the space to complement a survey with departments of Law Enforcement, Metro informal traders the City has already Police, Traffic, City Parks, Electricity The Department of Economic conducted via the CSIR. It is the City’s Services, Environmental Health, Facilities Development’s Pilot Project on vision that the results of these initial Management, Outdoor Advertising, Public Public Space Management studies will steer the development of Lighting, Roads & Stormwater, Solid With the Department of Economic a long-term plan for the management Waste, Cleaning, Traffic Signals, Water Development having begun a process to not only of these two crucial CBD nodes & Sanitation, Social & Early Childhood enable the best-practice management but of public spaces across the metro. Development and Communications, as and revitalisation of public spaces well as with the national South African across the metropole, an initiative Police Service (SAPS). has been set up to use two nodes Department of Telecommunications In terms of The State of Cape Town of great economic importance to the Broadband Pilot Project Central City Report, the CCID research CBD, namely Greenmarket Square With the City having invested over team behind this publication has also and St Georges Mall, as a pilot study R1.7 billion in the creation of its Municipal collaborated extensively over the years towards the incubation of ideas. To this Broadband Network, (primarily to with the City’s departments of Spatial end, the City approached the CCID in connect over 700 of its own buildings

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and facilities throughout the metro), by played a facilitation role in this project 2015 this network had become robust between City Telecommunications and and extensive enough for leveraging by private property owners in the pilot area. the private sector. A “last kilometre” pilot project has therefore commenced within a four-block radius in the CBD, which will THE WESTERN CAPE see the installation of cables into every GOVERNMENT (WCG), CITY OF private building in the area. This will result CAPE TOWN AND THE CCID in faster fi bre allocation and will encourage The WCG’s Department of Community competition between operators to give Safety (DoCS) commenced a pilot tenants choice, improving services and project in 2016 in collaboration with driving down prices. During 2016, the CCID the City of Cape Town and the CCID in which graduates from the WCG’s youth MYCITI ELECTRIC BUSES leadership development organisation, Affi rming a commitment made by the City WORLD ENERGY CITIES PARTNERSHIP (WECP) Chrysalis Academy, are trained as of Cape Town at COP21 in Paris in 2015, In 2016, Cape Town hosted the World Energy ambassadors for the iconic The its Transport and Urban Development Cities Partnership (WECP) annual general Company’s Garden in the CBD, a public Authority1 (TDA) has proceeded with a meeting in which 13 cities took part. This facility that falls under the City of Cape pilot project to expand its current fl eet event brings together cities recognised Town’s Parks Department. The students, of diesel buses with 10 electric vehicles. as international energy capitals to share who receive stipends from WCG, are The purpose of the pilot is to evaluate experiences in the development of the deployed on nine months’ rotation at the benefi ts of battery-powered electric energy sectors. Cape Town was welcomed a time. They are upskilled and managed buses as an alternative fuel option as the newest member in recognition of it during their deployment by CCID Safety for the MyCiTi fl eet, which is to grow being the leading city in this sector in South & Security, and are trained to assist signifi cantly over the next decade. Africa, in terms of contributing to the growth visitors, report damage to infrastructure, The City will also be offsetting the of the green economy, building resilience and be the eyes and ears on the ground electricity requirements of the electric and combatting climate change. with regard to public safety, illegal buses with solar photovoltaic technology. dumping and anti-social behaviour. In addition to the approximately 1 080

tonnes of CO2 per annum that will be avoided as a result of this project, and as the carbon footprint is reduced, TDA will earn carbon credits, which the City WORKING TOWARDS will be able to sell on the international market through mechanisms provided to THE GREEN ECONOMY signatories of the Kyoto Protocol, as well THE CITY OF CAPE TOWN’S ENERGY2040 STRATEGY as on local emerging markets as a result Energy2040 informs the sustainable energy action plan that is guiding Cape Town of the current SA Carbon Tax Act and the towards becoming a more resilient, lower-carbon, resource-effi cient and equitable city. carbon offset regulations. Part of the City’s Energy2040 strategy is Action Plan 2020, which includes clear targets The MyCiTi service aims to start taking for increasing renewable energy usage and reducing carbon emissions within the delivery of the buses in June 2017, residential, commercial and transport sectors, and includes: making Cape Town the fi rst municipality The Energy Game Changer programme pushes rapid diversifi cation of the energy in the country to benefi t from the use 1 supply mix, including and encouraging the use of renewable and cleaner energy. of electricity as an alternative fuel The Electricity Savings campaign is a communication campaign targeting technology for its bus fl eet. 2 the commercial and residential sectors. Small-scale embedded generation promotes a feed-in tariff system for alternative 3 energy producers. Energy effi ciency and renewable energy in municipal operations, where the 4 City is leading by example by retrofi tting street and traffi c lights as well as its buildings with energy-effi cient lighting and rooftop photovoltaic systems, accompanied CYCLING by energy management training for facilities and fl eet staff as well as behaviour change programmes for building users. The City of Cape Town aims to have at The Smart Living and Working programme targets the general public in resource least 8% of its workforce going to work 5 effi ciency across energy, water and waste. on bicycles by 2032. To make this a reality, TDA is developing a strategy to cultivate a cycling culture in Cape Town. This will CONNECTING THE CBD VIA PUBLIC TRANSPORT include business case studies for how Along with the MyCiTi system (see Section 3 for passenger numbers per precinct) and such a culture can contribute to the local the Golden Arrow bus service, public transport commuters also make their way via rail economy through opportunities such and along minibus taxi routes. In terms of Metrorail, 4 004 296 passenger trips (singles as bicycle manufacturing plants and and returns) were undertaken via the Central City in 2016. In terms of minibus taxis, bike-share systems. Currently only there are 32 routes operating from Cape Town’s main railway station in the CBD, with 1% of commuter trips in the city are each route servicing a different suburb. In 2016, a comprehensive map of these routes made by bike. was compiled for the fi rst time and can be found online. (https://whereismytransport.com/wp-content/uploads/2017/02/WhereIsMyTransport-

City of Cape Town Energy2040, brochure available from www.savingelectricity.org.za/pdf/2040_energy_ SOURCES: City of Cape Town vision_cct_brochure.pdf; ; https://energycities.org Vertical-Minibus-Taxi-Routes-Map-Digital.pdf) 1 Formerly known as Transport for Cape Town (TCT).

08_09_SOCC16_CONNECTIVITY.indd 9 2017/04/09 11:19 PM RETAIL AND VISITOR ECONOMIES IN THE CAPE TOWN CENTRAL CITY There are a number of opportunities still available in the CBD for the retail community, particularly to service the growing after-hours residential and diversifying daytime customer bases. RETAIL IN THE CBD The bar and club scene in the Central The fl ipside of this coin is that there are City’s nighttime economy has been still opportunities for astute retailers to thriving for some time, but over the service existing potential customers past few years, recognition has also who are currently taking their day-to-day been given to the potential of a growing business and service needs elsewhere; market looking for after-work drinks or ie outside the CBD to other shopping dinner and even theatre venues. areas and, in particular, malls. In terms of shopping, the CBD is A full breakdown of the type and gradually starting to see retailers numbers of retail outlets that exist embracing extended hours as well as throughout the CBD can be found in the diversifi cation of products on offer, albeit precinct-by-precinct analyses further on perhaps not as quickly as the markets – in this publication, and may be useful to both the growing residential and daytime those looking to fi nd geographical and business communities – would like. sector gaps in the CBD marketplace.

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RETAIL OCCUPANCY RATES While the estimate of all available retail than an actual increase in space available. available, rather than an actual increase in space in the Central City has increased Of the space available currently in the vacancies. slightly from the 269 293m² available at CBD for retail, there has been a marginal The following indicates the total space in the end of 2015 to 279 579m² by the end decline in occupancy from 95% at the end each precinct plus retail occupancy rates of 2016, this is due in a large part to the of 2015 to 94% in 2016 (back to the same as of December 2016, compared year-on- fact that property and business owners level of 2014). Again, this can be attributed year to 2015 and 2014. Where shopping are becoming increasingly willing to share in part to the fact that the publisher of centres exist, these are indicated. information with our research team, rather this report now has more accurate ﬁ gures

PRECINCT 1 PRECINCT 2 PRECINCT 3 PRECINCT 4

51 378m2² 92 340m²* 30 088m² 105 773m²** December 2016: 91% December 2016: 97% December 2016: 89% December 2016: 95% December 2015: 93% December 2015: 97% December 2015: 89% December 2015: 97% December 2014: 90% December 2014: 94% December 2014: 92% December 2014: 97% *Includes 12 610m2 inside Picbel **Includes 43 840m² inside Golden Acre and Parkade (Strand Street) 9 478m² inside Grand Parade Centre (both in Adderley Street), and 12 388m² inside Grand Central (cnr Plein & Darling streets) FORMAL RETAIL OPINION SURVEY Since 2009, regular surveys have been conducted with a sample group of around 240 retailers in the Cape Town CBD to determine the economic climate of this sector in CHANGE IN CUSTOMERS terms of whether they have seen a growth or decline of retail, as well as to gauge their In 2016, a question was introduced to overall satisfaction with being in the area. The following indicate some of the results from gauge whether retailers had seen their the latest (May 2016) survey, comparing them to those of a year before. customers change over the years (and, if so, what they were doing about it). EXTENDED OPENING HOURS YEAR-ON-YEAR Responses were as follows: A question around extended opening hours was ﬁ rst posed to retailers COMPARISON OF "Yes, my customers have changed but in November 2015, and again in May 2016, to gauge whether they were CURRENT BUSINESS a) starting to pay heed to the growing residential community who were 37% I am still selling the same products." calling for extended shopping hours and b) servicing CBD workers who STATUS choose to do their shopping in the CBD after work rather than in their There has been "Yes, my customers have changed and own neighbourhoods (in some cases, to avoid rush-hour trafﬁ c). 21% I’ve adjusted the products I sell." a 12% increase (from 21% to 33%) "I am noticing more tourists/visitors 18% visiting my store." in retailers who have seen a growth "I am noticing more locals (CBD 31% 30% 27% 12% in their businesses. 10% residents or people working in town) “I already stay “I already “Yes, I would be “No, there is visiting my store." open beyond stay open over prepared to stay no value in 17h00.” weekends.” open beyond this for me.” "No, my customers have not changed 14% at all and I am still selling the 25% in 2015 22% in 2015 17h00 and/or 25% in 2015 same products." on weekends.” 28% in 2015

10_13_SOCC16_RETAIL.indd 11 2017/04/09 11:36 PM THE VISITOR ECONOMY The strength of investment into the Cape Town Central City across numerous platforms is resulting in an ever-increasing visitor economy (made up of both local visitors from other parts of the city as well as those from outside), which in turn helps market the area towards further development of new business and job opportunities.

Close to 400 000 people attended 114 offi cial, permitted events1 in CAPE TOWN INTERNATIONAL CONVENTION CENTRE (CTICC) public spaces in the Central City In 2017, the CTICC will add 31 148m² to its existing 109 707m² space when it opens its during 2016, while an additional East wing expansion, increasing the popular venue’s potential for hosting conferences 504 events with total visitor days of and exhibitions by 28%. Situated in the Foreshore (Precinct 1) area of the Central City, 875 297 were held at the Cape Town year on year it continues to contribute enormously to the local, regional and national International Convention Centre economy, particularly with its after-tax profi t in 2015-16 of R47m – R30m over target. (CTICC). Add to these the hundreds 2013-14 2014-15 2015-16 of thousands who fl ock to the Generated towards Western Cape GGP R2.8bn R3.1bn R3bn numerous “happenings” in the Contributed to national GDP R3.1bn R3.4bn R3.5bn CBD such as the highly popular monthly First Thursdays and other Total revenue generated R172m R197m R209m “regulars” such as Tuning the Vine, Direct and indirect jobs sustained throughout South Africa 7 649 8 058 7 758 not to mention the vibrant nighttime economy that has evolved as well THE 504 EVENTS HOSTED AT THE CTICC DURING THE 2015-16 YEAR INCLUDED as the high volumes of leisure and business tourists who spend time in the area, and it is clear the visitor 39 28 15 19 28 37 338 economy has become a signifi cant international national exhibitions trade fairs banquets special film shoots role player in the success of the conferences conferences events and other Central City. meetings TOP FOUR EVENTS (PER CATEORY, BY ATTENDANCE) 7 834 38 106 37 000 6 445 AfricaCom 2015 Cape Homemakers Cape Town African Utility (top international Expo 2015 International Jazz Week 2016 conference) (top exhibition) Festival 2016 (top trade fair) (top special event)

HOTEL OCCUPANCY There are currently 58 establishments in the CBD ranging from hotels (40) to backpackers (18), with an estimated 4 600 beds. The following occupancy and revenue per available room (RevPAR2) ﬁ gures are courtesy of Cape Town Tourism via the monthly Accommodation Performance Review and Forecast Report3. They compare the past two years and track occupancy trends in the CBD versus the rest of the metro.

OCCUPANCY REVENUE PER AVAILABLE ROOM (RevPAR) Cape Town lowest three occupancy months Central City lowest three occupancy months OCCUPANCY ROOM 2016 RevPAR 2016 2015 2016 2015 RATE RATE June 48% June 46% June 44% June 45% Overall average 72% R1 596 R1 145 July 56% July 50% July 51% July 47% Cape Town Overall average May 56% May 53% May 57% May 54% 71% R1 784 R1 260 Central City Cape Town highest three occupancy months Central City highest three occupancy months OCCUPANCY ROOM 2016 2015 2016 2015 2015 RATE RATE RevPAR Nov 87% Feb 84% Nov 89% Nov 86% Overall average 67% R1 423 R957 Feb 85% Nov 83% Feb 84% Feb 85% Cape Town March 83% March 81% March 81% March 83% Overall average 66% R1 549 R1 026 Central City 1 According to the City of Cape Town Events Offi ce. 2 RevPAR is a performance metric in the hotel industry, calculated by dividing a hotel’s total guestroom revenue by the room count and the number of days in the period being measured. 3 This report is conducted by Horwath HTL South Africa, an independent member fi rm of Crowe Horwath International’s Hotel, Tourism and Leisure Group, consultants for potential investors, fi nanciers and operators. www.horwathhtl.co.za

10_13_SOCC16_RETAIL.indd 12 2017/04/09 11:38 PM THE STATE OF CAPE TOWN CENTRAL CITY REPORT 2016 DOING BUSINESS IN THE CENTRAL CITY

COMMERCIAL The Cape Town CBD is the only major inner-city area in South Africa bucking the trend of ofﬁ ce vacancies remaining high. While national inner-city ofﬁ ce PROPERTY TRENDS vacancies year on year were up Commercial property in the Cape Town CBD 40bps to 15.5%, the Cape Town CBD’s vacancies have continued to drop, the continues to grow overall from strength-to- latest year on year from 10% to 9.4%. strength against the previous year under review.

Although slightly higher than at the “It would appear that much of the world’s economy, including South Africa, has end of 2015, the City of Cape Town taken on a holding pattern and this is further portrayed in the country’s GDP overall continues to have the lowest growth fi gures. However, Cape Town seems to have escaped the downturn and offi ce vacancy rate1 of all South African municipalities (as at Q3 2016), at 7.6%. construction activity here continues to boost the local economy. We continue Focusing on the Cape Town Central to see high levels of activity in and around the Cape Town CBD, the V&A City, the fourth quarter of 2016 saw Waterfront as well as the Atlantic Seaboard. These activities certainly indicate vacancies sit at 9.4% overall, down the level of confi dence that investors still have in the future of our city.” from 10% in December 2015. JOHN MATTHEWS, president of the Master Builders Association of the Western Cape The most signifi cant drop in vacancy (MBAWC), www.netwerk24.com, 11 October 2016 rates in the CBD has been in premium (P) grade, which has declined signifi cantly year on year from 25% in 2015 to SUMMARY OF RENTAL OFFICE SPACE IN THE CBD (as at Q4 2016) 13.8% in 2016. There have also been notable drops in A grade (from 9.1% GRADE Total rentable Available for leasing Vacancy rate (%) Average gross asking to 6.7%) and C grade (from 16.4% to area (m2) rentals (R/m2) 11.9%), the latter due in no small part 2015 2016 2015 2016 2015 2016 2015 2016 to the conversion of C grade space into Premium 52 000 52 000 13 000 7 200 25% 13.8% 185 185 residential and hotel accommodation over the course of the last 18 months – A grade 349 883 361 883 31 819 24 310 9.1% 6.7% 130 133 a trend set to continue into 2017. B grade 501 612 509 362 36 865 52 555 7.3% 10.3% 95 105 The only category in which vacancies C grade 133 317 106 363 21 808 12 679 16.4% 11.9% 75 75 rose was B grade, which showed year- on-year movement from 7.3% to 10.3%. TOTALS 1 036 812 1 029 608 103 492 96 744 10.0% 9.4%

COMPARATIVE OFFICE RENTAL RATES 2012 TO 2016 COMPARATIVE OFFICE VACANCY RATES 2012 TO 2016

Rentals March 2012 to December 2016 Vacancies March 2012 to December 2016 200 40

180 35 160 30 140 120 25 100 20

80 15 60 10 40 5 20 0 0

Mar 2012June 2012Sept 2012Dec 2012Mar 2013June 2013Sept 2013Dec 2013Mar 2014June 2014Sept 2014Dec 2014Mar 2015June 2015Sept 2015Dec 2015Mar 2016June 2016Sept 2016Dec 2016 Mar 2012June 2012Sept 2012Dec 2012Mar 2013June 2013Sept 2013Dec 2013Mar 2014June 2014Sept 2014Dec 2014Mar 2015June 2015Sept 2015Dec 2015Mar 2016June 2016Sept 2016Dec 2016

P GRADE A GRADE B GRADE C GRADE P GRADE A GRADE B GRADE C GRADE

Western Cape construction activity continues despite SOURCES: Western economic conditions, Cape Business News ; 8 September 2016 1 All information on this page is as per the SAPOA quarterly reports, www.sapoa.org.za

10_13_SOCC16_RETAIL.indd 13 2017/04/09 11:38 PM RESIDENTIAL PROPERTY

TRENDSYear-on-year comparative sales in the Cape Town Central City1 continue to show a steady rise in residential interest and a downtown lifestyle. DOWNTOWN ON THE UP While the R/m2 value continues to climb of the property bubble felt across the The comparative selling price of units steadily overall against the demand for globe. It has, therefore, only really been against what they originally listed for is also Central City units, and well above the since 2014 that erstwhile downtown decreasing (-2.5% in 2016 versus -4.8% average growth rates seen in South “pioneers” looking for an urban lifestyle in 2015), although the average number Africa as a whole, the year-on-year have begun to see the CBD as a true of days that units spent on the market increases of average sales prices have live/work/play has risen marginally slowed somewhat as the CBD market destination and, most The placement of residential (47 days in 2016 versus stabilises, particularly when comparing importantly, a long- complexes across the 45 in 2015). these to the low base of the market back term investment. CBD can be found in the The year also saw in 2013, and in particular the signifi cant What is signifi cant, breakdowns of each individual a signifi cant increase escalation in averages from 2014 to 2015. however, is that precinct – see Section 3. in the numbers of units Prior to 2013, values in the Central City the average unit sold (228 in 2016 against had stagnated for many years, following size is becoming 185 in 2015) due to the a developers’ boom in the mid-2000s signifi cantly smaller2 than those built in transfer of many of the 169 residential units and rapid uptake by leveraging investors the mid-2000s, following the international that make up the commercial property-to- hoping for short-term and highly trend towards smaller units in popular residential conversion, by Signatura, of the profi table turnarounds, many of whom urban areas – and again showing old Triangle House in Riebeek Street into the were then struck by the same burst stabilisation against global standards. Radisson Blu Hotel & Residence complex.

TOTAL VALUE OF ALL OVERALL AVERAGE YEAR-ON-YEAR % INCREASE RESIDENTIAL UNITS SOLD SALE PRICE IN AVERAGE SELLING PRICE 2013: R249m across 163 units 2013: R1.428m 2013 to 2014: 8.68% 2014: R296m across 191 units 2014: R1.552m 2014 to 2015: 30.86% 2015: R376m across 185 units 2015: R2.031m 2015 to 2016: 15.06% 2016: R533m across 228 units 2016: R2.337m

14_15_RESIDENTIAL.indd 14 2017/04/09 11:43 PM THE STATE OF CAPE TOWN CENTRAL CITY REPORT 2016 DOING BUSINESS IN THE CENTRAL CITY

AVERAGES AND RANGES ACROSS THE SPECTRUM Average size across all units sold: 71m² (versus 82.97m² in 2015) RENTAL PROPERTIES Average R/m²: R33 921 (versus R24 483 in 2015) Average price sold against listed price: -2.5% (versus -4.8% in 2015) At the time of writing this report, there were 116 residential units to rent in the Cape Town Central City. This is a signiﬁ cant increase over LARGEST SMALLEST HIGHEST PRICE PAID LOWEST PRICE PAID the 63 units available at the time of 421m² three- 31m² one-bathroom The highest 47m² one-bedroom, writing the 2015 (previous) report, bedroom, two- studio units, no price paid for an one-bathroom unit but was due to the large release of bathroom unit with parking, sold in Hyde apartment in the (no parking) at rental units from the newly opened four parking bays Park (Jan 2016), CBD was also the Trafalgar Centre, 169-apartment block in Riebeek sold in Mutual 14 Jetty St (Precinct largest (see ﬁ rst Anton Anreith Street, the Radisson Blu Hotel & Heights (July 1) and Four Seasons column); ie the 421m² Arcade (Precinct 1). Residence. 2016), 14 Darling St (April 2016), unit sold in Mutual Sold at listing The highest – and highly exceptional (Precinct 4). Sold 43 Buitenkant Heights for R10.7m. price of R815 000 – rentals in the CBD at the time at listing price of (Precinct 4). Both sold (R17 340/m²) . of writing this 2016 report were R10.7m (R25 416/m²). at R1.2m (R38 710/ a three-bedroom, 309m² ultra-luxury m²), respectively for penthouse with its own extensive 11.1% and 0% below pool terrace (R130 000/month), list price. followed by two three-bedroom penthouses (respectively 156m2 NUMBER OF DAYS IN WHICH THE 228 UNITS SOLD IN 2016 STAYED ON THE MARKET and 168m2) each for R80 000/ Average: 47 days 0 to 7 days: 109 units 8 to 21 days: 45 units 22 to 59 days: 35 units month. Taking these rentals out 60 to 89 days: 8 units 90 to 179 days: 22 units 180 to 299: 6 units More than 300 days: 3 units of the equation (to calculate more standardised averages for monthly rentals) delivered the following results across a large selection (36) of CBD blocks, and included both furnished (65) as well as unfurnished (51) units.3

STUDIO/BACHELOR (excluding dedicated student accommodation – see below): Number of units for rent: 6 (4 unfurnished, 2 furnished) Average: R10 608 p/m (2015: R10 375 p/m) Highest: R15 600 p/m Lowest: R7 950 p/m

ONE BEDROOM: Number of units for rent: 67 (29 unfurnished, 38 furnished) Average: R15 081 p/m (2015: R15 860 p/m) 1 All values pertaining to sold residential properties on this page have been sourced via the Institute of Estate Agents of Highest: R35 000 p/m South Africa’s PropStats site (www.propstats.co.za) and WinDeed (www.windeed.co.za) and reﬂ ect properties listed as Lowest: R8 000 p/m transferred at the Deeds Ofﬁ ce on or before 31 December 2016. 2 This is in terms both of new units being built in new developments having smaller footprints, as well as the subsequent TWO BEDROOM: subdivision of a number of the very large units that hit the CBD market during the mid-2000s. Number of units for rent: 38 3 According to www.property24.com 4 While there were actually four three-bedroom units for rental at the time of writing this report, three of these were (16 unfurnished, 22 furnished) exclusive penthouses renting between R80 000 and R130 000 per month. As these were the exception and not the norm, Average: R22 290 p/m (2015: R20 120 p/m) they were excluded from the calculations in order to achieve reliable averages for rentals in the CBD. Highest: R40 000 p/m Lowest: R12 500 p/m

THREE BEDROOM: Number of units for rent: 14 (unfurnished) Average: R27 500p/m (2015: R36 000p/m) Highest: R27 500 p/m Lowest: R27 500 p/m

STUDENT ACCOMMODATION There are seven buildings in the Cape Town CBD dedicated to providing student accommodation, and with 82 educational establishments in and around the CBD, the demand for additional, affordable accommodation of this nature is still extremely high. Current monthly rentals, when units are available, range from R2 850 (double room, sharing) to R6 000 (studio apartment).

14_15_RESIDENTIAL.indd 15 2017/04/09 11:43 PM PROPERTY INVESTMENT UPDATE 14 13

39 20 21 32 17 23 19 2016 31 The developments listed here reﬂ ect the status of investments completed in the Central City during 2016, as well as those under construction, undergoing refurbishment or either in planning or proposed as of December 2016. They indicate, conservatively1, an investment value into the CBD between 2016 and 2020 of R12.086 billion. For more detailed information on each development in terms of 35 developers, status and timeframe, refer to the relevant precinct (P1 to 4 as indicated below) in Section 3 of this publication. COMPLETED UNDERWAY PLANNED PROPOSED

1 4 6 11 15 16

NETCARE CHRISTIAAN ARTSCAPE LIVE BEAUFORT HOUSE (P2) IZIKO PLANETARIUM (P3) CAPE TOWN STATION 1 BARNARD MEMORIAL 5 20!20 (P1) 9 GOVERNMENT, R120m 13 NATIONAL MUSEUM, 18 REDEVELOPMENT HOSPITAL (P1) ENTERTAINMENT R86m DEVELOPER City of Cape Town R27m PHASE 2 (P4) PRIVATE HOSPITAL, R330m (R1.5bn overall value) DEVELOPER Iziko Museums GOVERNMENT, R210m DEVELOPER Netcare DEVELOPER Western Cape SOUTHERN SUN DEVELOPER Prasa/Intersite Government 10 CAPE SUN IZIKO SOUTH AFRICAN WESBANK REFURBISHMENT (P2) 14 MUSEUM (P3) COLLEGE OF CAPE 2 HOUSE (P2) CAPE TOWN HOTEL, R250m NATIONAL MUSEUM, R187m 19 TOWN (P4) COMMERCIAL & RETAIL, R10m 6 INTERNATIONAL DEVELOPER Tsogo Sun DEVELOPER Iziko Museums EDUCATION, R19m DEVELOPER Emira Property CONVENTION CENTRE DEVELOPER College Fund EAST WING (P1) SUNSQUARE AND THE SENTINEL (P3) of Cape Town CONVENTION CENTRE, R832m 11 STAYEASY HOTELS (P2) 15 RESIDENTIAL & RETAIL, PIER PLACE (P1) DEVELOPER City of Cape Town HOTEL, R680m R200m MASTER OF THE HIGH 3 COMMERCIAL, R200m DEVELOPER Tsogo Sun DEVELOPER Nova Group in 20 COURT BUILDING (P4) DEVELOPER Aria Property KPMG PLACE (P1) association with Dogon FAMILY & REGIONAL COURT, Group 7 COMMERCIAL & RETAIL, TWINELL BUILDING R70m R400m 12 (P2) URBAN ON BREE (P3) DEVELOPER Department 4 LOOP STREET (P1) DEVELOPER FWJK COMMERCIAL & RETAIL, 16 RESIDENTIAL,TBC of Public Works 4 COMMERCIAL, RETAIL R120m DEVELOPER Urban On & RESIDENTIAL, R20m RADISSON BLU HOTEL DEVELOPER Kings Cross SPEAKERS CORNER DEVELOPER FWJK on behalf 8 & RESIDENCE (P1) Properties CAPE TOWN CITY 21 (P4) of Berk Property Holding RESIDENTIAL & HOTEL, R1bn 17 HALL (P4) COMMERCIAL & RETAIL, TBC DEVELOPER Signatura GOVERNMENT, R27m DEVELOPER Urban Lime DEVELOPER City of Cape Town

16_17_SOCC16_PROPERTY_MAP.indd 16 2017/04/09 11:48 PM THE STATE OF CAPE TOWN CENTRAL CITY REPORT 2016 PROPERTY INVESTMENT UPDATE

16 13 15 37 12 9 11 39 10 8 30 21 29 2 4 28 34 36 26 38 22 33 3 18 24 25

27 5 6 1

21 24 25 26 36 38

STRAND CONCOURSE THE MODERN (P1) MIKE’S SPORTS (P2) GOLDIES (P1) 60 QUEEN VICTORIA 22 (P4) 26 COMMERCIAL & HOTEL, 30 COMMERCIAL & RETAIL, 34 RESIDENTIAL & RETAIL, 37 STREET (P3) GOVERNMENT, R40m R1.5bn TBC R1.1bn HOTEL, TBC DEVELOPER City of Cape Town DEVELOPER Ingenuity DEVELOPER Gera Investment DEVELOPER FWJK DEVELOPER RDC Properties Property Investments Ltd Trust South Africa THE OLD GRANARY REEDS HOUSE (P1) 23 (P4) THE LINK (P1) 1 HARRINGTON (P4) 35 COMMERCIAL, R350m CAPE TOWN NGO, R42m 27 COMMERCIAL & RETAIL, 31 NGO & RESIDENTIAL, DEVELOPER Ingenuity 38 STATION MIXED-USE DEVELOPER Desmond Tutu TBC R130m Property Investments Ltd DEVELOPMENT (P4) Peace Foundation/ DEVELOPER TBC DEVELOPER Nicro MIXED USE TBC, R1.1bn City of Cape Town ZERO-2-ONE DEVELOPER Eris Property 16 ON BREE (P1) THE HARRINGTON 36 TOWER (P2) Group THE CAPETONIAN (P1) 28 RESIDENTIAL & RETAIL, 32 (P4) RETAIL, PARKING, HOTEL & 24 HOTEL, R200m R860m COMMERCIAL & RETAIL, TBC RESIDENTIAL, R1.5bn SPINDLE (P4) DEVELOPER Raya Hotels DEVELOPER FWJK DEVELOPER Blend DEVELOPER FWJK 39 COMMERCIAL, RETAIL & RESIDENTIAL, TBC TELKOM EXCHANGE 19A LOOP STREET (P2) 27 LOWER LONG DEVELOPER TBC 25 FORESHORE (P1) 29 COMMERCIAL & RETAIL, 33 STREET (P1) PARASTATAL, TBC TBC COMMERCIAL, R476m DEVELOPER Telkom DEVELOPER Kings Cross DEVELOPER Ingenuity 1 The word “conservatively” is used as a number of property Properties Property Investments Ltd investment values have yet to be conﬁ rmed by developers. Those for which the values are unknown appear above as TBC.

16_17_SOCC16_PROPERTY_MAP.indd 17 2017/04/09 11:48 PM THE CENTRAL CITY 03 PRECINCT BY PRECINCT PRECINCT 1 P1 The Foreshore financial district

Hammerschlag

Founders CTICC Garden DF Malan WALTER SISULU AVE Artscape Smuts Jan Vasco Da Gama

North Wharf HERTZOG BOULEVARD Pier Square Jetty Place LOWER LONG LOWER Hans Strijdom HEERENGRACHT CHRISTIAAN BARNARD CHRISTIAAN

Civic Centre

Mechau Old Marine Drive Thibault Square Prestwich

Cape Town Burg ADDERLEY

LOOP Railway Station BREE Riebeek

This map shows the clustering of the following types of activities in this precinct. Education Call centres Developments Hotels and accomodation Residential complexes MyCiTi Bus stations and stops Student accomodation

Bordered by Buitengracht, Nelson Mandela While sporadic development had taken CBD's financial and banking services. It is Boulevard, Christiaan Barnard Street, place, it is largely due to the opening in 2003 also currently home to large ground-floor Hertzog Boulevard, and Adderley and of the Cape Town International Convention retailers such as car showrooms and, lying Riebeek streets, Precinct 1 (P1) lies largely Centre (CTICC), adjoining Convention Towers near the harbour, has the largest number outside of the Heritage Protection Overlay commercial space and 19-floor luxury hotel of shipping companies in the CBD. It is fast Zone that covers most of the Central City (today the Westin Cape Town) that this becoming home to a high concentration to the southwest of Hertzog Boulevard. It is area owes its turnaround. Early in 2017, of skyscrapers including both office and thus in this precinct that most of the CBD’s an expansion to the CTICC will open its residential blocks – in the case of the latter, greenfields development has been able to doors (see pg 12). 50% of all residential units sold in 2016 take place, on land reclaimed from the sea Since then, the Foreshore has become were in P1. In 2016, the Foreshore also in the 1930s. known as the Central City's "financial and saw the opening of the new state-of-the- For decades, however, the Foreshore investment district”. While P3 holds the art Netcare Christiaan Barnard Memorial was cut off both from the harbour by large highest number of legal professionals (in Hospital, which is already seeing a shift of freeways to the northeast, as well as from terms of advocates with offices close the medical profession from P2 (where the the centre of the CBD due to the vast dusty to the High Court), P1 is home to many old Christiaan Barnard Memorial Hospital parking lots that dominated the area. large legal firms, as well as to 42% of the was) to P1 (see box on pg 23).

18_23_SOCC16_PRECINCT1.indd 18 2017/04/10 12:27 AM

& CA THE CBD’S GREENFIELDS AND RISE OF THE VERTICAL CITY The Foreshore’s most unique feature lies in the fact that the bulk of the land on which it sits was reclaimed from the sea in the 1930s, and has, to a large part, remained undeveloped until recently. As the area in which the majority of Cape Town’s tallest ofﬁ ce and residential developments currently lie (and are being developed – see pg 22), it is where the largest portion of the City of Cape Town's proposed Foreshore Freeway Precinct project will be situated (see bottom left).

Lying as it does at the edge of the CBD, it is also the precinct best connected to all the major incoming and outgoing routes, including the N1 and N2, and lies closest to other fast-growing economic nodes, such as the V&A Waterfront, in which the Silo District is currently under development to the northwest, and the new Harbour Arch development by Amdec, soon to begin in adjoining Culemborg to the southeast.

THE FORESHORE FREEWAY PRECINCT project looks to develop six hectares of City land that lie between unﬁ nished elevated freeways that have been a highly debated part of the CBD since the 1970s. In 2016, the City’s Transport and Urban Development Authority (TDA) invited developers, investors and property consortia to propose viable solutions in particular to address congestion and related accessibility issues as well as the incorporation of much needed affordable housing. At the time of going to print, six potential projects had been chosen and were awaiting public comment.

18_23_SOCC16_PRECINCT1.indd 19 2017/04/10 12:27 AM SNAPSHOTS OF P1’S BUSINESS BUSINESS & RETAIL & RETAIL ENVIRONMENT THE BREAKDOWN OF TOP BUSINESS CATEGORIES or 43 of 103 fi nancial services & banking in the CBD are in P1. IN P1 VS THE CENTRAL CITY OVERALL 42% These include large corporate The following shows the top 15 categories of business in P1 versus the top 15 overall offi ces belonging to bankers Absa, Bidvest, in the Central City, and indicates both the mix and focus in this precinct. Those in red FirstRand (FNB), Nedbank, Standard Bank also indicate those sectors in which P1 boasts the highest numbers overall in the CBD. and Investec, and accounting fi rm KPMG. 678 627

(19%) of the 3 061 businesses in the CBD are in P1 209 575 184 103 96 P1 also has the highest numbers of venues/ 86 82 71 69 65 58 53 53 40 ofﬁ ces in the CBD in the following categories: 23 16 38 81 29 49 43 13 27 21 14 16 20 13 13 ICT 83% 48% 52% Legal Retail Education Architects Call centres Embassies or 10 of the or 11 of the or 12 of the 23 services Restaurants Bars & clubs Travel services Employment & Medical practices Accommodation Health & beauty Insurance brokers 12 customs 23 investment telecommuni- Specialised services Shipping companies Property & real estate recruitment agencies brokering & companies cations Financial services & banking freight forward- companies 1 As per pg 18, by the time the 2017 report is published, there will have been a signiﬁ cant shift in the number of ing firms medical practices located in P1 with the opening late in 2016 of the new Netcare Christiaan Barnard Hospital.

GOVERNMENT FACILITIES EDUCATION (or 24%) of the 182 government facilities 44 in the CBD are in P1, broken up into: (or 26%) of the 82 educational institutions 50% 9% 41% 7 746 6 325 national provincial local Total Total 21 in the CBD (including departments and (municipal) number of number of branches of major institutions) are in P1. employees daily users

There are 10 tertiary institutions and 3 language schools. Of the tertiary institutions, it is estimated there are: CALL CENTRES (or 35%) of the 1 130 550 600 37 call centres in the full-time part-time and staff employed CBD are in P1. students who correspondence by these 13 are registered students institutions at these who are also institutions registered

18_23_SOCC16_PRECINCT1.indd 20 2017/04/10 12:28 AM THE STATE OF CAPE TOWN CENTRAL CITY REPORT 2016 PRECINCT BY PRECINCT // PRECINCT 1

While only 38 (or 6%) of the 678 legal entities in the CBD are in P1, these include a number of the CBD’s – and South Africa’s – largest legal fi rms. ENTERTAINMENT P1 is home to, among others, Edward Nathan Sonnenbergs Inc (ENS), Cliffe Dekker Hofmeyr 7 (or 10%) of the 69 dedicated bars and clubs in the CBD Inc, Bowman Gilfi llan Inc, Webber Wentzel, are in P1. These employ an estimated: Adams and Adams, Fairbridges Wertheim Becker and Norton Rose. full-time part-time 37 employees 36 employees 23 (or 77%) of the 30 shipping companies in the CBD are in P1. In addition, 10 (or 83%) of the 12 freight forwarding and 29 (or 14%) of the 209 eateries in the CBD are found in P1. customs brokering fi rms in the CBD at in P1. Of these:

81 (or 13%) of the 627 retail outlets in the CBD are in P1. Of these 81 outlets, 66% are made up of:

jewellery design 23% 13% & manu facturing 40% 30% 30% motor and related (including diamond and precious are classified are classified are classified as gems wholesalers) 6% (including large car and CLOTHING STORES motorcycle dealerships) as restaurants as fast-food/ coffee shops takeaway outlets Medium to large retailers include 9% 6% 9% Food Lovers Market (two outlets in OPERATING HOURS HAIR furniture & hardware P1) and a Clicks. There are also two SALONS decor stores stores bottle stores and three superettes, It is estimated only 26% are open after 18h00. among a number of other assorted retailers and service suppliers. 7% are open 7 days a week.

P1 has seven MyCiTi bus stops including the BRT’s main IN 2016, A TOTAL OF 3 184 432 PEOPLE MYCITI station for the city, situated at the Civic Centre. Other stations include Adderley and Thibault. The bus stops in the precinct are BOARDED BUSES AND 2 915 653 Convention Centre, Foreshore, Lower Long and Lower Loop. ALIGHTED IN P1.

INDIVIDUAL CIVIC CENTRE ADDERLEY THIBAULT CONVENTION FORESHORE LOWER LONG LOWER LOOP BUS STOP 1 659 236 1 128 358 373 028 CENTRE 9 812 1 526 boarded 10 015 boarded 2 457 boarded AND STATION boarded and boarded boarded boarded and and 2 523 and 3 463 and 18 262 FIGURES ARE AS 1 789 988 and 799 861 and 289 058 12 498 alighted alighted alighted alighted FOLLOWS. alighted alighted alighted

18_23_SOCC16_PRECINCT1.indd 21 2017/04/10 12:28 AM DEVELOPMENTS The following investments, conservatively valued at just over R11.152 billion, have been recorded in P1 since the publication of the first edition of The State of Cape Town Central City Report (which reflected IN PLANNING/ on 2012) and currently take the precinct up until 2020. They include developments completed since 2012, PROPOSED currently under construction, in planning or proposed, and list redevelopments, refurbishments, upgrades and new developments. See pg 16 for an overall perspective on current CBD developments. 16 ON BREE YEAR 2019 COMPLETED SINCE 2012 LOCATION 16 Bree St TYPE Residential, retail CIVIC CENTRE UPGRADE PORTSIDE VALUE R860m YEAR 2013 YEAR 2014 LOCATION Hertzog Boulevard LOCATION City block of 27 LOWER LONG ST TYPE City of Cape Town Buitengracht, YEAR TBC VALUE R32.8m Bree and Mechau LOCATION 27 Lower Long St streets, and Hans TYPE Commercial 22 BREE Strijdom Avenue VALUE R476m YEAR 2013 TYPE Commercial, retail LOCATION 22 Bree St VALUE R1.6bn GOLDIES TYPE Commercial, retail YEAR TBC VALUE R360m MEDIA24 UPGRADE LOCATION City block of YEAR 2015 Buitengracht, and 33 HEERENGRACHT LOCATION Rua Vasco Da Gama Mechau, Bree & (GRAND PARADE TYPE Commercial, retail Prestwich streets INVESTMENTS) VALUE R66m TYPE Residential, retail, YEAR 2013 commercial LOCATION Pier Place, PARKALOT VALUE R1.1bn Heerengracht (ADDITION TO CURRENTLY UNDER TYPE Commercial, retail ATLANTIC CENTRE) CONSTRUCTION REEDS HOUSE VALUE R160m YEAR 2015 YEAR TBC LOCATION Jack Craig Street 4 LOOP ST UPGRADE CTICC EAST WING LOCATION 6 Jack Craig St ARTSCAPE (PHASE 1) TYPE Parking YEAR 2017 (EXPANSION) TYPE Commercial YEAR 2013 VALUE R69.4m LOCATION 4 Loop St YEAR 2017 VALUE R350m LOCATION DF Malan Street TYPE Commercial, retail, LOCATION Block between FW TYPE Entertainment THE TOWERS residential De Klerk Boulevard TELKOM EXCHANGE VALUE R40m (STANDARD BANK) VALUE R20m and Coen Steytler FORESHORE YEAR 2015 Circle YEAR TBC ATLANTIC CENTRE LOCATION Hertzog Boulevard KPMG PLACE TYPE City of Cape Town LOCATION Lower Long Street YEAR 2013 TYPE Commercial, retail YEAR 2017 (convention centre, TYPE Parastatal LOCATION Christiaan Barnard VALUE R533m LOCATION Cnr Christiaan commercial, retail) VALUE TBC Street Barnard VALUE R832 TYPE Commercial, retail TOUCHSTONE HOUSE Street, Martin THE LINK VALUE R160m YEAR 2015 Hammerschlag YEAR TBC LOCATION Cnr Bree & Way & FW de Klerk LOCATION DF Malan Street ARTSCAPE (PHASE 2) Mechau streets Boulevard TYPE Commercial, retail YEAR 2014 TYPE Commercial, retail TYPE Commercial, retail VALUE TBC LOCATION DF Malan Street VALUE R250m VALUE R400m TYPE Entertainment THE MODERN VALUE R59.985m THOMAS PATULLO RADISSON BLU HOTEL YEAR TBC REDEVELOPMENT & RESIDENCE LOCATION City block of Bree, ROGGEBAAI PLACE YEAR 2015 YEAR 2017 Mechau & Loop YEAR 2014 LOCATION Jan Smuts Street LOCATION 22 Riebeek St streets, and Hans LOCATION Jetty Street TYPE Commercial, retail, TYPE Hotel, retail, ARTSCAPE (PHASE 3) Strijdom Avenue TYPE Commercial, retail parking residential YEAR 2017 TYPE Commercial, hotel VALUE R285m VALUE R81.466m VALUE R1bn LOCATION DF Malan Street VALUE R1.5bn TYPE Entertainment SOUTHERN SUN NETCARE CHRISTIAAN VALUE R86 THE CAPETONIAN WATERFRONT BARNARD MEMORIAL UPGRADE UPGRADE HOSPITAL PIER PLACE UPGRADE YEAR TBC YEAR 2014 YEAR 2016 YEAR 2017 LOCATION Pier Place, LOCATION 1 Lower LOCATION DF Malan Street LOCATION Pier Place, Heerengracht Buitengracht TYPE Hospital Heerengracht TYPE Hotel TYPE Hotel VALUE R330m TYPE Commercial, retail VALUE R200m VALUE R100m VALUE R200m

18_23_SOCC16_PRECINCT1.indd 22 2017/04/10 12:28 AM THE STATE OF CAPE TOWN CENTRAL CITY REPORT 2016 PRECINCT BY PRECINCT // PRECINCT 1

RAISING THE TEMPERATURE ACCOMMODATION OF THE FORESHORE The new 16-storey Netcare Christiaan Barnard Memorial RESIDENTIAL Hospital is set to expand the horizons of the Foreshore from being known as a ﬁ nancial district to one 1 Radisson Blu Hotel & Residence 22 Riebeek St also known for superior healthcare. The new facility incorporates: 2 Fountain Suites 1 Hans Strijdom Ave A total ﬂ oor space of around 30 000m2. 3 Icon 24 Hans Strijdom Ave

4 4 Loop Street 4 Loop St 1 248 beds, 61 of which are intensive care 5 Protea North Wharf 1 Lower Bree St R18 0791 and high care. Expansion pockets within the current structure will enable this to expand 6 Hyde Park Anton Anreith Arcade Average rental to a total of 375 to cater for future growth. 7 The Diplomat Anton Anreith Arcade per month in P1 11 theatres (with three more envisaged to be 8 Trafalgar Centre Hans Strijdom Ave commissioned in 2017), two cardiac catheterisation laboratories (with space for a third), medical, surgical and paediatric wards, a maternity unit with delivery rooms, a dedicated caesarean theatre and neonatal ICU. 2 1 8 Over 500 permanent staff are employed at the hospital.

6 7 3 Approximately 120 resident specialists can be 4 accommodated.

Emergency services include a three-bed resuscitation facility, 5 nine examination rooms including a dedicated paediatric room, sexual assault centre and doctors’ rooms; a Netcare 911 operations base; and a rooftop helistop. The facility is working towards achieving level 1 trauma accreditation by August 2017.

14% 50% 65m² R37 214 R2.377m 13 -1.3% 29% or 8 of the or 114 of 228 Average size Average cost Average sale Average days Average price or 34 of the 57 residential residential of unit sold per m² of unit price in P1 on the market sold against 116 apartments complexes units sold in P1 during sold in P1 in 2016 during 2016 listed price in to rent in the in the CBD in the CBD 2016 during 2016 2016: -1.3% CBD* were are in P1 during 2016 in P1 were in P1

1 Of the 34 apartments to rent in P1, two were luxury penthouses each being rented out at R80 000 per month. The next most expensive was R30 000pm. It is the opinion of the publisher that the top two most expensive rentals skewed the overall averages in this precinct, so these two apartments at R80 000pm have been excluded from the average rental calculations for P1, and the average rental of R18 079pm has therefore been based on the remaining 32 apartments for rent.

*As at the end of 2016, according to www.property24.com HOTELS & BACKPACKERS or 15 of the 40 hotels in the CBD lie in P1 – many of which make up the largest hotel complexes in the STUDENT 38% Central City, lying in close proximity to the Cape Town International Convention Centre and the entrance to the V&A ACCOMMODATION Waterfront. These large complexes include – among others – the There is one student Westin, two Radisson hotels (Park Inn and Radisson Blu), three accommodation complex in Tsogo Sun hotels (The Cullinan, Southern Sun Waterfront and P1, situated on Pier Place. Sun1 Foreshore) and the Protea North Wharf.

None of the CBD’s 18 backpacker 0 establishments are to be found in P1. 23

18_23_SOCC16_PRECINCT1.indd 23 2017/04/10 12:28 AM PRECINCT 2 The Central City’s P2 downtown in a downtown

Bordered by Buitengracht and Riebeek Adderley, Riebeek and Wale streets, in many ways Precinct 2 (P2) is the true “downtown” heart

Lower Burg Lower of the Cape Town Central City, with Waterkant

LOWER LONG LOWER the greatest mix of commercial, retail, leisure, educational and residential venues in the greater CBD. It has a strong and highly

ADDERLEY varied daytime economy, with STRAND 40% of all businesses in the CBD based here, as well as 51% of its retail and 50% of its educational institutions. It also has a strong, Castle developing nighttime economy, BREE which has in particular seen the growth of Bree Street as a popular entertainment strip over Hout the past few years, and houses 30.5% (equal to P3) of the CBD’s

St Georges Mall residential complexes. Burg While its footprint lies in the SHORTMARKET Table Bay District Heritage Protection Overlay Zone (as BUITENGRACHT

does most of the Central City), LONG Greenmarket Square numerous development projects Longmarket over the years have combined Square LOOP

Riebeeck Riebeeck (and continue to combine) the highly successful preservation of heritage with contemporary Church architecture – among these

Burg Mandela Rhodes Place and Taj Cape Town in St Georges Mall and, more recently, the Twinell Building WALE between Loop and Long streets.

OPEN STREETS CAPE TOWN (OSCT) A global movement inspired by Colombian capital Bogotá's Civlovía recreational programme that turns 120km of street in that city into car- free space every Sunday, the "Open Streets" movement, founded in 2012, saw the first held in the CBD take place in P2 along Bree Street. Hosting around 15 000 participants, this is now an annual event that takes place largely still in P2 in January.

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& CA THE STATE OF CAPE TOWN CENTRAL CITY REPORT 2016 PRECINCT BY PRECINCT // PRECINCT 2

PUBLIC SPACE MANAGEMENT PILOT In a motion tabled to the City of Cape Town council in 2013, it was noted that two important high footfall P2 public spaces – namely, Greenmarket Square and St Georges Mall – would greatly benefi t from improved urban maintenance, appropriate live entertainment, and formal retail and informal trading nodes with a diverse offering of goods. The Department of Economic Development undertook to establish a plan that would ensure stabilisation and optimisation of not only this public space, but that world work as a model for best practice that would ultimately be available for utilisation in public spaces across the metropole. In 2016, the City began the process of assessment, information gathering and stabilisation of the spaces, collaborating with the CSIR and the Cape Town CCID to undertake a number of independent reviews that will lead to the development of two world-class public spaces of important economic signifi cance to the CBD. With the pilot project hoping to bear fruition within three to fi ve years, 2016 saw the following undertaken:

CSIR informal A stakeholder Pedestrian A design Stabilisation trader survey survey counts (these development of the urban targeting formal will be ongoing project to environment businesses in, in 2017) document the including general and users of, current state and cleaning, grafﬁ ti both spaces challenges, and removal and present possible beautiﬁ cation opportunities for of the area improvement (ongoing)

24_29_SOCC16_PRECINCT2.indd 25 2017/04/10 1:35 AM P2 ALSO HAS THE HIGHEST NUMBERS BUSINESS & RETAIL OF VENUES/OFFICES IN THE CBD IN THE FOLLOWING CATEGORIES BREAKDOWN OF TOP BUSINESS CATEGORIES Accountants 19 678 Adult entertainment 6 IN P2 VS THE CENTRAL CITY OVERALL 627 Artistic studios 13 The following shows the top 15 categories of business Business development 12 in P2 versus the top 15 overall in the Central City, and Call centres 17 indicates both the mix and focus in this precinct. Those Communications & advertising 14 in red also indicate those sectors in which P2 boasts Courier services 3 the highest numbers overall in the CBD. Engineering 18 Film & TV production 10 Food companies 6 Health & beauty 17 1229 Import & export 8 or (40%) of the Industrial councils 12 3 061 businesses in Mining companies 2 209 the CBD are in P2 Political parties 5 184 Places of worship 11 Retail administrative ofﬁ ces 5 103 96 86 82 71 69 65 58 53 40 40 125 321 93 82 45 631 42 41 35 28 20 24 32 22 20

ICT Retail

Education Property & Architects Restaurants & banking Bars & clubs real estate Legal services Travel services Employment & Accommodation Health & beauty/ Financial servicesMedical practices Specialised services recruitment agencies Non-proﬁ t organisations SNAPSHOTS OF P2’S BUSINESS & RETAIL ENVIRONMENT

or 321 of 51% 627 retail outlets in the 42 (or 49%) of the 14 (or 44%) of the 13 (or 35%) of 32 (or 60%) of CBD are in P2. 86 travel-related 32 communication 37 artistic studios 53 architecture companies in the and advertising are in P2. These fi rms in the CBD Of these 321 outlets, 58% are made up of: CBD are located in fi rms in the CBD include art are in P2, while 22% 13% 8% 8% 7% P2, including Cape are located in P2. galleries as well 18 (56%) of clothing jewellery art furniture hair Town Tourism and Companies include as studios involved 32 engineering stores stores galleries & decor salons the main Cape 140 BBDO, Matt in production, fi rms are also to stores Town depot of the Advertising and manufacturing and be found here. CitySightseeing the Cape Town sound recording. Medium to large retailers include Pick n Pay, South Africa red offi ces of the Daily Woolworths, Edgars, Mr Price, Food Lovers Market, bus service. Maverick. Pep Stores, Jet Mart and Clicks. There are also four bottle stores, four superettes and three 1 In 2016, the majority of CBD medical practices were housed in the old Netcare Christiaan Barnard Memorial Hospital hardware stores, among other assorted retailers. in P2. However, the 2017 report will refl ect that many of these practices will have moved across to the new P1 facility.

24_29_SOCC16_PRECINCT2.indd 26 2017/04/10 12:43 AM THE STATE OF CAPE TOWN CENTRAL CITY REPORT 2016 PRECINCT BY PRECINCT // PRECINCT 2 ENTERTAINMENT

or 28 of the 69 dedicated bars and 41% clubs in the CBD are in P2 THESE EMPLOY AN ESTIMATED:

138 51 full-time part-time employees employees

or 93 of the 209 eateries in the CBD 44% are found in P2. OF THESE: 69% 20% 11% are classified are classified are classified as as restaurants as fast-food/ coffee shops takeaway outlets or 17 of 37 call CALL centres situated in A NUMBER OF THESE ALSO HAVE BAR FACILITIES. the CBD are found 32% ARE OPEN AFTER 6PM. CENTRES 46% in P2. 9% ARE OPEN 7 DAYS A WEEK.

In 2016, a total of 93 901 people boarded buses and 175 424 alighted in P2. MYCITI Individual bus stop & station ﬁ gures are as follows:

P2 has six MyCiTi bus stops: Castle, Church, Longmarket, CHURCH LONGMARKET MID LONG MID LOOP RIEBEEK STRAND Mid Long, Mid Loop, Riebeek 4 658 boarded 10 052 boarded 11 910 boarded 1 410 boarded 36 152 boarded 29 719 boarded and Strand. and 10 397 and 15 113 and 7 093 and 14 096 and 95 799 and 32 926 alighted alighted alighted alighted alighted alighted

THERE ARE: 58 898 417 EDUCATION tertiary 1 933 14 institutions Total of Total of Total of language full-time students part-time and full-time staff 41 (or 50%) of the 82 educational 13 schools registered at correspondence employed by these institutions students also these institutions institutions in the CBD are in P2 registered, the These include departments and branches of majority being major institutions, among them the AAA School from Intec of Advertising, Boston City Campus and Business Correspondence College, Damelin, the International Hotel School, College and the Rainbow Academy, Fedisa and Intec College. Lyceum College

24_29_SOCC16_PRECINCT2.indd 27 2017/04/10 12:43 AM DEVELOPMENTS The following investments, conservatively valued at R2.85 billion, have been recorded in P2 since the publication of the first edition of The State of Cape Town Central City Report, which reflected back on 2012, and currently take the precinct up until 2020. They include developments completed since 2012, currently under construction, in planning or proposed, and list redevelopments, refurbishments, upgrades and new developments. For more information on current developments, see pg 16.

COMPLETED IN PLANNING/ SINCE 2012 PROPOSED NEWSPAPER HOUSE MIKE’S SPORTS YEAR 2012 YEAR TBC LOCATION 122 St Georges Mall LOCATION Cnr Strand, Bree & TYPE Commercial, retail Waterkant streets VALUE R150m TYPE Commercial, retail VALUE TBC 107 BREE STREET YEAR 2013 LOCATION 107 Bree St TYPE Commercial, retail VALUE R20m

19A LOOP STREET YEAR TBC LOCATION 19A Loop St TYPE Commercial VALUE TBC

ZERO-2-ONE TOWER WESBANK HOUSE YEAR TBC UPGRADE LOCATION Cnr Adderley & YEAR 2016 Strand streets LOCATION 9 Long St TYPE Residential, retail, TYPE Commercial, retail hotel, parking VALUE R10m VALUE R1.5bn

CURRENTLY UNDER CONSTRUCTION

TWINELL BUILDING SOUTHERN SUN TSOGO SUNSQUARE & BEAUFORT HOUSE SUN YEAR 2017 CAPE SUN STAYEASY HOTELS YEAR 2017 LOCATION 113 Loop St YEAR 2017 YEAR 2017 LOCATION 78 Bree St TYPE Commercial, retail LOCATION 23 Strand St LOCATION Buitengracht, Strand, TYPE City of Cape Town VALUE R120m TYPE Hotel Bree & Castle streets VALUE R120m VALUE R250m TYPE Hotel VALUE R680m

or 54 of the 182 government facilities in the GOVERNMENT 30% CBD are found in P2, broken up into:

Total number Total number FACILITIES 60% 20% 20% of employees of daily users national provincial local (municipal) 2 282 2 042

24_29_SOCC16_PRECINCT2.indd 28 2017/04/10 12:43 AM THE STATE OF CAPE TOWN CENTRAL CITY REPORT 2016 PRECINCT BY PRECINCT // PRECINCT 2 ACCOMMODATION

AVERAGE RENTAL RESIDENTIAL PER MONTH IN P2 R17 587

17 30% 18% 16 or 17 of the or 42 of 228 14 57 residential residential units 12 complexes in the sold in the CBD 13 CBD are in P2 8 9 during 2016 were 11 6 4 15 7 3 in P2 10 5 R30 457 2 84m² Average cost/m² 1 Average size sold sold in P2 in 2016 in P2 in 2016

1 DE OUDE SCHUUR 120 Bree St 10 71 LOOP 71 Loop St 2 GLASTON HOUSE 63 Church St 11 THE DECKS 67 Long St 3 MANDELA RHODES PLACE Cnr Wale & Burg streets 12 MURRAY HOUSE 25 Hout St R2.497m 4 TAJ CAPE TOWN Cnr St Georges Mall & Wale St 13 GUARANTEE HOUSE 35 Burg St Average sale -4.1% 5 HUYS HEEREN XVII 157 Longmarket St 14 IMPALA HOUSE 27 Castle St price in P2 in Average price 6 MARKET HOUSE 17 Shortmarket St 15 CASTLE GATE 83 Castle St 2016 sold against 7 GREENMARKET PLACE 54 Shortmarket St 16 34 ST GEORGES 34 St Georges Mall listed price in P2 8 NAMAQUA HOUSE Cnr Shortmarket & Burg streets 17 THE COLOSSEUM 3 St Georges Mall 9 KIMBERLEY HOUSE 34 Shortmarket St

HOTELS & BACKPACKERS STUDENT ACCOMMODATION 76 27% Average days on or 31 of the 116 13 (or 33%) of the 40 hotels There is one student the market in P2 apartments to rent and 7 (or 39%) of the accommodation in 2016 in the 18 backpacker establishments establishment in P2 (Student CBD were in P2* in the CBD lie in P2. at Home in Adderley Street). *As at December 2016.

Following the City of Cape Town’s rollout of its a fibre-pair allocation could immediately be provided BROADBAND fibre-optic Municipal Broadband Network across the and the fulfilment times for new services be reduced, metropole to its own facilities, by 2015 this network had giving building tenants and owners a choice of service become extensive enough to begin to be leveraged by providers and access to the City’s connection speed ROLLOUT PILOT the private sector. With the vision that the City would of 1Gbps. In 2016, the Cape Town CCID assisted by provide the “last kilometre” of cabling from its own facilitating between the City’s Telecommunications network to private buildings in business areas across branch and private property owners in the pilot area. It PROJECT Cape Town, the City selected the Cape Town CBD for was envisaged that, if successful, the pilot would be a four-block pilot project in P2, during which it would rolled out across the entire CBD and to other business install a cable to every building so that requests for areas throughout the metropole.

24_29_SOCC16_PRECINCT2.indd 29 2017/04/10 12:43 AM PRECINCT 3 The cultural, legal and leisure P3 heart of the Central City

When one thinks of Precinct 3 (P3), WALE three defining features spring to mind: it is the home of The Company’s

PLEIN Garden (the Central City’s answer to Dorp Central Park), the Western Cape High Court with its hundreds of members of the bar, and the CBD’s longest standing Leeuwen entertainment strip – Long Street, Parliament which has the highest concentration of Keerom late-night venues in the Central City. BREE LOOP LONG In terms of the first of these, seven Pepper Queen Victoria of Cape Town’s major cultural assets are in P3, clustered in and around The BUITENGRACHT Company’s Garden, namely: Iziko South Bloem Bloem African National Gallery, Cape Town Government Ave Government Holocaust Centre, South African Jewish New Church New Green Museum, Iziko South African Museum, Buiten Iziko Planetarium, Iziko Bertram House and Michaelis Gallery. It is also here Orphan Ln that the University of Cape Town

The Company's Garden Company's The houses most of its fine arts department Orphan on its Hiddingh Campus, together with the main performance venues of its drama department. BUITENSINGEL Running the length of the garden is Queen Victoria Street, the first true Dean residential node in the Central City with three of its oldest residential blocks and

its largest, St Martini Gardens. Together ORANGE with Long Street, the two streets also house five of P3's seven hotels and five of its six backpacker establishments, making this the precinct closest to becoming a true 24/7 node. Numerous offerings exist in terms 869 of restaurants and takeaway outlets or 28% of the alongside the late-night venues, while 3 061 businesses retail speaks largely to independently in the CBD are in P3 owned outlets ranging from edgy

ANNANDALE HATFIELD boutiques and second-hand stores catering to the student scene to high- end designers. A significant number of design studios (eight in total, from This map shows the clustering of the following types of activities in this precinct. photography to furniture design) and Education Call centres Developments Hotels and accomodation Residential complexes architectural firms (14) are also to be MyCiTi Bus stations and stops Student accomodation found in this precinct.

In 2016, a total of 87 150 people boarded buses and 170 551 alighted in P3. MYCITI Individual bus stop and station figures are as follows: P3 has six MyCiTi bus stops: DORP LEEUWEN MICHAELIS UPPER LONG UPPER LOOP GOVERNMENT Dorp, Government Avenue, 18 514 boarded 14 036 boarded 16 820 boarded 10 878 boarded 18 096 boarded AVENUE Leeuwen, Michaelis, Upper and 55 607 and 14 645 and 31 279 and 50 602 and 6 884 8 806 boarded Long and Upper Loop. alighted alighted alighted alighted alighted and 11 534 alighted

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& CA THE STATE OF CAPE TOWN CENTRAL CITY REPORT 2016 PRECINCT BY PRECINCT // PRECINCT 3

30_35_SOCC16_PRECINCT3.indd 31 2017/04/10 1:36 AM BUSINESS & RETAIL 678 BREAKDOWN OF TOP BUSINESS CATEGORIES 627 IN P3 VS THE CENTRAL CITY OVERALL The following shows the top 15 categories of business in P3 versus the top 15 overall in the Central City, and indicates both the mix and focus in this precinct. Those in red also indicate those sectors in which P3 boasts the highest numbers overall in the CBD. (or 70%) of 678 legal entities in the CBD 476 are in P3. This is not surprising as this is Apart from legal the precinct where the Western Cape High Court services, and bars and is situated (in Keerom Street) and where a number clubs, there are no other of the buildings in its immediate vicinity house categories of business in the individual and small partnership ofﬁ ces of the which P3 ranks as having approximately 450 advocates listed on the Cape Bar the most in the CBD. Council, who service both the High Court as well as 209 the Magistrates’ Courts (in neighbouring Precinct 4 184 and elsewhere in the metropole). 103 96 86 80 71 69 65 58 53 40 40 476 105 54 24 9 14 14 9 11 28 16 8 14 8 8

ICT Retail

Education Property & Architects Restaurants & banking Bars & clubs real estate Legal services Travel services Employment & Accommodation Health & beauty/advertising Financial servicesMedical practices Artistic studios Specialised services Communications & recruitment agencies/ IN CHAMBER SNAPSHOTS OF P3’S Advocates ofﬁ ces in P3 are generally located in chambers in and around Keerom BUSINESS & RETAIL ENVIRONMENT Street and include the following buildings: 42 Keerom St Chambers 105 (or 17%) of the 627 retail outlets in the CBD are in P3. 50 Keerom St Chambers Of these 105 outlets, 65% are made up of: 56 Keerom St Chambers 68 Keerom St Chambers Bank Chambers (cnr Bloem & Keerom streets) 25% 15% 12% 7% 6% Cape Law Chambers (70 Keerom St) 25% clothing 15% motor & 12% furniture, 7% hair salons, 6% jewellery Huguenot Chambers (40 Queen Victoria St) stores, almost related, including lighting & decor, including three designers, all Leeuwen Chambers (20 Keerom St) all of which are two scooter with a number barber shops offering bespoke Velocity Building (cnr Leeuwen & one-off, designer shops being local pieces Keerom streets) boutiques (from design studios/ Venken Lane Chambers (Venken Lane high-end bridal bespoke retail collections to between Long & Keerom streets). young, affordable There are also three galleries, three sports & outdoors venues, two hardware- and funky related and two bottle stores, as well as seven privately owned, small streetwear) superettes in P3. There are no medium to large retailers, nor any outlets of national retail chain stores. Apart from the national and international brands in the motor & related industries, all other outlets speak to the cultural and artistic character of the precinct, being owned and operated by individual owners. P3 IS THE ONLY PRECINCT IN THE CBD THAT HAS NO CALL CENTRES OPERATIONAL IN ITS FOOTPRINT.

30_35_SOCC16_PRECINCT3.indd 32 2017/04/10 1:12 AM THE STATE OF CAPE TOWN CENTRAL CITY REPORT 2016 PRECINCT BY PRECINCT // PRECINCT 3 EDUCATION ENTERTAINMENT (or 11%) of the 82 educational institutions or 28 of the 69 bars & clubs in the CBD are in P3. With this in the CBD (including departments and branches of major institutions) are in P3, 41% precinct being the longest standing in terms of venues catering for 9 including the UCT Hiddingh Campus – late-night entertainment, it is understandable that it is also the most proliﬁ c the “home” of the university’s Michaelis – particularly as P3’s Long Street stretch of seven city blocks has been world School of Fine Arts, a large portion of its renowned for decades as one of Cape Town’s primary party nodes. Drama department, and the Gordon Institute for Performing and Creative Arts (GIPCA). See more about this campus on pg 35. IT IS ESTIMATED THAT THESE 28 CLUBS EMPLOY A TOTAL OF: full-time part-time

OF THE 9 EDUCATIONAL INSTITUTIONS IN PRECINCT 3: 207 employees 95 employees

(26%) of the 209 restaurants in the CBD are located Precinct 3. 54 Of these: 2 6 1 are high are tertiary is a language schools institutions school

IT IS ESTIMATED THAT THESE 70% 13% 11% 4% 2% INSTITUTIONS HAVE: are classified are classified are classified are classified are classified as restaurants as takeaways as coffee as bakeries as butcheries part- shops 2 371 599 time and 207 full- full-time correspondence time staff OPERATING HOURS: students students It is estimated that as many as 43% are open after 7% are open 18h00 (the highest number out of all four precincts). 7 days a week.

THE COMPANY’S GARDEN & CHRYSALIS ACADEMY AMBASSADORIAL PROGRAMME The CCID has established a four-way as well as to the hundreds of thousands on average, around 20 students across an partnership with the Western Cape of visitors who seek it out on an annual annual cycle being trained and supervised Government’s Department of Community basis as a horticultural experience in by the CCID, to act as ambassadors in Safety, its Chrysalis Academy and The its own right or to visit the numerous the garden on a day-to-day basis. Duties Company’s Garden (managed by the cultural venues dotted in and around its range from assisting visitors and reporting City of Cape Town) to upskill and utilise boundaries. damage to infrastructure to being the eyes students from the academy to provide an Chrysalis Academy is a youth leadership and ears on illegal dumping and antisocial ambassadorial role in the garden. This is development organisation and social behaviour. Stipends for the students are to ensure it retains its value both to the crime prevention initiative that empowers paid by Community Safety, which also Central City and to Cape Town as a whole young people to take responsibility for funded two information kiosks. as a tranquil setting to escape city life, their personal growth. There are currently,

30_35_SOCC16_PRECINCT3.indd 33 2017/04/10 1:12 AM DEVELOPMENTS The following investments, conservatively valued at around R592 million, have been recorded in P3 since the publication of the first edition of The State of Cape Town Central City Report (which reflected on 2012) and currently take the precinct up until 2020. They include developments completed since 2012, as well as those currently under construction, in planning or proposed and include redevelopments, refurbishments, upgrades and new developments. For more information, see pg 16.

COMPLETED CURRENTLY SINCE 2012 UNDER CENTRE FOR THE CONSTRUCTION BOOK UPGRADE IZIKO SOUTH AFRICAN YEAR 2013 MUSEUM LOCATION 62 Queen Victoria St YEAR 2017 TYPE National Library of LOCATION Queen Victoria South Africa Street VALUE R10m TYPE National museum VALUE R187m

IZIKO PLANETARIUM UPGRADE YEAR 2017 LOCATION Queen Victoria Street TYPE National museum 177 BREE ST VALUE R27m YEAR 2015 LOCATION 177 Bree St TYPE Commercial, retail VALUE R30m

WESTERN CAPE GOVERNMENT BUILDINGS UPGRADE YEAR 2015 LOCATION 4 Dorp St, 7 & 15 Wale St TYPE Provincial government URBAN ON BREE VALUE R138m YEAR 2017 LOCATION 220 Loop St IN PLANNING/ TYPE Residential, retail PROPOSED VALUE TBC

60 QUEEN VICTORIA ST THE SENTINEL YEAR 2019 YEAR 2017 LOCATION 60 Queen Victoria St LOCATION 27 Leeuwen St TYPE Hotel TYPE Residential, retail VALUE TBC VALUE R200m

or 23 of the 182 government facilities in the GOVERNMENT 13% CBD are in P3, broken up into:

Total number Total number FACILITIES 22% 72% 6% of employees of daily users national provincial local (municipal) 4 717 2 402

30_35_SOCC16_PRECINCT3.indd 34 2017/04/10 1:12 AM THE STATE OF CAPE TOWN CENTRAL CITY REPORT 2016 PRECINCT BY PRECINCT // PRECINCT 3 ACCOMMODATION

HOTELS & BACKPACKERS STUDENT (18%) of the 40 hotels in the CBD lie in P3, and range 33% ACCOMMODATION from the 5-star Marriott African Pride 15 on Orange There are currently two student accommodation Hotel and Pepperclub Hotel & Spa, to 4-star hotels or 6 of the 18 backpacker complexes in P3. These are Eurocentre (14 Dorp St) and 7 such as Cape Town Lodge and boutique hotels such as Student & Life (210 Loop St). The building which housed Cape Town Hollow Hotel, Daddy Long Legs and Urban Chic. establishments in the CBD are in P3 a third in 2016 (Get a Room,179 Loop St), is currently being renovated and its use is still to be confirmed. RESIDENTIAL 1 MONTREAUX FLATS 90 Queen Victoria St 13 2 220 LOOP (previously CPI House) 220 Loop St 17 12 3 ARTIOS COURT 4 Dean St 4 HOLYROOD 80 Queen Victoria St 15 5 VICTORIA COURT 301 Long St 11 10 6 ST MARTINI GARDENS 74 Queen Victoria St 7 7 WEST SIDE STUDIOS Cnr Buitengracht 8 16 & Bloem streets 14 9 8 FLATROCK 8 Buiten St 9 SENATOR PARK 66 Keerom St 2 10 THE PEPPER CLUB Cnr Loop & Pepper streets 6 11 6 ON PEPPER 6 Pepper St 5 12 168 LONG ST 168 Long St 13 155 LOOP ST 155 Loop St 4 14 186 LOOP ST 186 Loop St 3 1 15 THE SENTINEL 27 Leeuwen St 18 (under construction) 16 LUTOMBURG 18 Keerom St 17 MANHATTAN PLACE 130 Bree St 18 15 ON ORANGE 15 Orange St

32% 12% 69m² R30 233 R1 986 368 -4,6% 47 24% R15 3851 or 18 of the or 27 of 228 Average size Average cost Average sale Average price Average days or 28 of the Average 57 residential residential sold during per m² during price during sold against on the market 116 apart- rental per complexes units sold 2016 in P3 2016 in P3 2016 in P3 listed price during 2016 ments to rent month in in the CBD during 2016 during 2016 in P3 in the CBD at P3 as at are in P3; the were in in P3 the time of December highest of all complexes going to print 2016 four precincts in P3 were in P3

1 Of the 28 apartments to rent in P3 as at December 2016, one (a 309m² penthouse in Loop Street) was listed as the most expensive rental in the CBD, at R100 000 per month. It is the opinion of the publishers that this skewed the overall averages in this precinct, so this rental has been excluded from the average rental calculations for P3, and the figure of R15 385pm has therefore been based on the remaining 27 apartments. UCT'S HIDDINGH CAMPUS AND ITS VALUE TO THE P3 ECONOMY

The University of Cape Town’s The Rosedale Building, housing Gallery hosts many events and facilitates new collaborative Hiddingh Campus plays a major role the Department of Drama and annual exhibitions. Old Medical research projects, particularly in in stimulating the creative economy the English Language Centre School, housing the Centre for the creative and performing arts of this area as well as its student life. Michaelis School of Fine Curating the Archive (CCA) and Bertram House Museum, a late Made up of 13 buildings, it includes: Art, founded in 1925, which which developes curatorship Georgian townhouse dating back The Arena Theatre, Little Theatre teaches new media, print media, as a creative site of knowledge to 1794 The Egyptian Building, and Little Theatre Workshop photography, sculpture, painting Gordon Institute for Performing a national monument which houses The Hiddingh Hall Library and discourse of art. The Michaelis and Creative Arts (GIPCA), which sculpture workshops and studios.

30_35_SOCC16_PRECINCT3.indd 35 2017/04/10 1:12 AM PRECINCT 4 P4 The East City If the Central City had an original SoHo district, this would be Precinct 4 (P4). It has for many years been the heart of the design and craft economies in the CBD with many entrepreneurs making their mark in the area’s coworking Castle of Good Hope communities. It also has history and heritage: the District Six museum Grand Parade is one of six museums in P4, which Parliament forms the boundary between the traditional CBD and the vast portion DARLING of land that was expropriated by the forced removals of the 1970s. It is City Hall characterised by big spaces – from the Longmarket Grand Parade to its wide streets and

ADDERLEY large government properties, including Parliament. It is the home of the world-

Corporation renowned The Fugard Theatre, and its Square Church Church Caledon City Hall houses the Cape Philharmonic Orchestra. It has a renowned bakery Spin (Charly’s Bakery on Harrington Square),

Parade Harrington one of the CBD’s oldest family Square Albertus businesses (Woodheads leathercraft),

PLEIN and Truth Coffee in Buitenkant Street was chosen by the Daily Telegraph as the world’s best coffee shop. It has Barrack a large student population who live here, many of whom attend the Cape Peninsula University of Technology on the old District Six border. The Cape Commercial Craft & Design Institute is found here, Parliament as is the Cape Town Central Police BUITENKANT Harrington Station and the magistrates’ courts. However, it is also home to four

CANTERBURY large-scale corporate ofﬁ ces and ROELAND a large portion of the CBD’s residential population, due to the conversion This map shows the clustering of the following types of activities in this precinct. of disused ofﬁ ce space during the Education Call centres Developments Hotels and accomodation Residential complexes property boom in the mid-2000s. MyCiTi Bus stations and stops Student accomodation

A PRECINCT OF POSSIBILITIES Although the mid-2000s saw a fl urry of residential development been at the lower scale of the CBD, and thus there has been due to conversions of numerous underutilised commercial a proliferation of space being used by wholesales, larger low-end buildings, P4, until 2016, had to a large extent been the least clothing distributors, and the types of businesses that need active of the four CBD precincts in terms of rejuvenation and big fl oor space at competitive rentals, such as casting studios, growth. The global property bubble bursting around 2008 fl ooring showrooms and light industrial operations. However, the saw many residential units return to the market and, on the investment value and potential of P4 is now changing. Residential whole, remain either empty or occupied largely by blocks are seeing increasing numbers of owner-occupiers, students looking for reasonable rentals. including many young professionals, seeking the downtown Large government departments in lifestyle; the nighttime and afterhours economy is starting to the area have traditionally taken pick up; and there is an increasing demand for the commercial up a fair amount of space, while and retail space, which is still the most economical in the CBD. numerous heritage buildings have made Following in the footsteps of the Foreshore with its greenfi elds redevelopment challenging. This is also the area in which possibilities, it is anticipated that this is the next Central City retail and commercial rentals over a number of years have precinct that will now fast see its potential being realised.

36_41_SOCC16_PRECINCT4.indd 36 2017/04/10 1:27 AM

& CA THE STATE OF CAPE TOWN CENTRAL CITY REPORT 2016 PRECINCT BY PRECINCT // PRECINCT 4

36_41_SOCC16_PRECINCT4.indd 37 2017/04/10 1:26 AM BUSINESS & RETAIL BREAKDOWN OF TOP BUSINESS CATEGORIES IN P4 VS THE CENTRAL CITY OVERALL The following shows the top 15 categories of business in P4 versus the top 15 overall in the Central City, and indicates both the mix and focus in this precinct. Those in red also indicate those sectors in which P3 boasts the highest numbers overall in the CBD.

TOP 15 IN P4 TOP 15 IN THE CENTRAL CITY

Legal services Legal 39 678 services SNAPSHOTS OF P4’S Retail 120 627 Retail BUSINESS & RETAIL ENVIRONMENT 120 (19%) of the 627 retail outlets in the CBD are in P4, making Restaurants Restaurants it the second-largest retail node in the Central City after P2 33 209 (with 321 outlets). Of these 120 outlets, 70% are made up of: Specialised services 29 184 Specialised services Financial services & banking 6 103 Financial services & banking Medical practices 6 96 Medical practices 28% 11% 11% Travel services 86 clothing furniture, lighting & jewellery stores, of which decor, including six design & Education 11 82 Education a large number are shops specialising in manufacturing wholesale clothing carpets and flooring ICT 11 71 ICT manufacturers and/ or distributors Bars & clubs 6 69 Bars & clubs Accommodation 12 65 Accommodation 58 Property & real estate 53 Architects 8% 6% 6% 40 Employment & recruitment agencies hair salons cellphone sales superettes (all individually 40 Health & beauty owned, small-scale) Artistic studios 11 There are also three shopping centres catering to Call centres middle-to-lower income groups during normal work 7 days. These include two large-scale department stores (Game and Shoprite). The remainder of retailers Non-profit organisations 10 represent a wide cross section of book shops (including the independent and popular The Book Lounge), Clothing manufacturers opticians, health & beauty and other specialist services, & distributors 9 387 many of which are increasingly being situated around Film production companies 7 and in close proximity to Harrington Square.

or 13% of the (6%) of (30%) of the (19%) of 39 678 legal 11 37 artistic 7 the 37 call 3 061 businesses entities in the studios in the centres in the in the CBD are in P3 CBD are in P4 CBD are in P4 CBD are in P4

36_41_SOCC16_PRECINCT4.indd 38 2017/04/10 1:26 AM THE STATE OF CAPE TOWN CENTRAL CITY REPORT 2016 PRECINCT BY PRECINCT // PRECINCT 4 EDUCATION

11 (or 13%) of the 82 educational institutions in the CBD are in P1, and students accounted for in this area make it the precinct with the largest full-time and part-time student numbers and staff in the Central City. P4 borders onto the Cape Peninsula University of Technology’s Zonnebloem campus as well as the City Varsity campus in Roeland Street. Student and staff numbers for these two institutions are, therefore, included in the averages below as the vast majority of them pass through the CBD daily, and many live in the Central City footprint, particularly in P4.

THERE ARE 11 EDUCATIONAL INSTITUTIONS IN PRECINCT 4. OF THESE:

1 8 1 offers National are tertiary is a creche Certificates to institutions Grade 9 students and upwards

It is estimated that these institutes have: 14 461 30 720 525 full-time part-time and full-time staff students correspondence students

or 34% of the 182 government TOTAL OF THESE DAILY USERS: GOVERNMENT 61 facilities in the CBD are in P4, NUMBER OF 18 548 1 500 are for SAPS (Cape Town Central Police Station) broken up into: EMPLOYEES: Total number 1 500 are for the Department of Home Affairs (Barrack Street) FACILITIES of daily users 3 000 are for Parliament (Plein Street) 80% 11% 9% 7 893 3 500 are for Cape Town Central Library (Darling Street) national provincial local 4 964 are for the Department of Labour (Plein & Parade streets)

IT IS ESTIMATED or16% of the 209 restaurants in the CBD THAT THESE 6 CLUBS ENTERTAINMENT are located Precinct 4 EMPLOY A TOTAL OF: 33 full-time OF THESE: 40 employees 6 (9%) of the 69 bars & clubs part-time 41% 31% 22% 3% 3% are classified are classified are classified are classified are also in the CBD are in Precinct 4. While the 83 employees numbers are low compared to other as restaurants as takeaways as coffee as butcheries operating as shops both a laundry precincts, it is anticipated that the nighttime and a wine bar economy of this precinct will now grow steadily as the CBD all round gains in It is estimated that 23% are open after 18h00. popularity. OPERATING HOURS 5% are open 7 days a week.

36_41_SOCC16_PRECINCT4.indd 39 2017/04/10 1:26 AM DEVELOPMENTS Unlike the three other precincts in the CBD, development in P4 has been relatively slow since 2012 (the ﬁ rst year under review in this series of publications), with new projects only really having come on line over the past year. These currently amount to a conservative investment value of R1.638 billion, and take the precinct up until 2020. They include developments currently under construction, in planning or proposed and include redevelopments, refurbishments, upgrades and new developments. See also pg 16 for more information.

CURRENTLY IN PLANNING/ UNDER THE HARRINGTON PROPOSED CONSTRUCTION CAPE TOWN STATION COLLEGE OF REDEVELOPMENT CAPE TOWN PHASE 2 YEAR 2017 YEAR TBC LOCATION Cnr Longmarket & LOCATION Bordered by Buitenkant streets Adderley & Strand TYPE Educational streets, and Old VALUE R19m Marine Drive TYPE National MASTER OF THE government HIGH COURT VALUE R210m YEAR 2017 LOCATION Cnr Parade & Albertus streets TYPE Provincial government VALUE R70m

SPEAKERS CORNER YEAR 2017 LOCATION Church Square, Parliament Street TYPE Retail & commercial 1 HARRINGTON ST VALUE TBC YEAR 2018 LOCATION 1 Harrington St TYPE Residential, NGO (Nicro) VALUE R130m

CAPE TOWN STATION DEVELOPMENT YEAR 2019 STRAND CONCOURSE LOCATION Bordered by YEAR 2017 Adderley & Strand LOCATION Underneath streets, and Old Strand Street CAPE TOWN CITY HALL Marine Drive TYPE City of Cape Town TYPE Commercial, retail VALUE R40m SPINDLE VALUE R1.1bn

THE OLD GRANARY THE HARRINGTON (FOR THE DESMOND YEAR TBC TUTU PEACE CENTRE LOCATION Cnr Barrack & YEAR 2017 Harrington streets LOCATION Cnr Longmarket & TYPE Commercial, retail Buitenkant streets VALUE TBC TYPE NPO VALUE R42m SPINDLE YEAR TBC CAPE TOWN CITY HALL LOCATION Cnr Spin & YEAR 2017 Plein streets LOCATION Darling Street TYPE Residential, retail, THE OLD GRANARY (FOR THE TYPE City of Cape Town commercial DESMOND TUTU PEACE CENTRE VALUE R27m VALUE TBC

36_41_SOCC16_PRECINCT4.indd 40 2017/04/10 1:26 AM THE STATE OF CAPE TOWN CENTRAL CITY REPORT 2016 PRECINCT BY PRECINCT // PRECINCT 4 ACCOMMODATION RESIDENTIAL (24%) of the 57 residential 14 complexes in the CBD are in P4 1 2 14 5 3 or 20% of 228 residential units sold 6 4 during 2016 were in complexes in 7 8 45 P4 – the second highest after P1, with the following averages achieved:

75m² R31 028 9 Average size sold Average cost per m²

10 13 11 12 R2.297m -3.1% Average sale Average price sold price against listed price 28 R15 228 1 CARTWRIGHTS CORNER 19 Adderley St 8 4 CHURCH SQUARE 4 Spin St 2 MUTUAL HEIGHTS 14 Darling St 9 WOLROY HOUSE 37 Buitenkant St Average days on Average rental per the market month in P4 3 THE WELLINGTON 96 Longmarket St 10 PERSPECTIVES 37 Roeland St (second-lowest after P1) 4 RED LION 111 Longmarket St 11 HIP HOP PLAZA 39 Roeland St 5 THE ADDERLEY 25 Adderley St 12 THE SQUARE 50 Buitenkant St 23 (20%) of the 116 apartments 6 THE PIAZZA ON CHURCH SQUARE 32 Parliament St 13 FOUR SEASONS 43-47 Buitenkant St to rent in the CBD at the time of 7 CHURCH SQUARE HOUSE 5 Spin St 14 THE BIJOUX APARTHOTEL 31 Adderley St going to print were in P41

1 The lowest number of available rentals across all precincts (as at December 2016)

HOTELS & BACKPACKERS STUDENT ACCOMMODATION (13%) of the 40 hotels in the CBD or 27% of the 18 backpacker A total of two student accommodation 5 lie in P4. All independently owned, establishments in the CBD complexes are in P4, namely two South they range from the 4-star Townhouse 5 are in P4 Point Student Accommodation venues, in Plein and Barrack streets. A high portion of Hotel to boutique-style hotels. the full-time tertiary education students in the CBD also live in rental accommodation in the large residential complexes in P4.

332 627 INDIVIDUAL BUS STOP AND STATION FIGURES ARE AS FOLLOWS: MYCITI the total of DARLING GROOTE KERK LOWER CASTLE 128 287 132 058 BUITENKANT 24 637 boarded Precinct 4 has four MyCiTi bus stops people who boarded boarded boarded 47 645 boarded and 45 123 only. These bus stops are Darling, buses in P4, while and 159 177 and 226 512 and 53 634 alighted Groote Kerk, Lower Buitenkant 484 446 alighted. alighted alighted alighted and Castle.

36_41_SOCC16_PRECINCT4.indd 41 2017/04/10 1:26 AM IN CONCLUSION 04 STATE OF THE CENTRAL CITY REPORT 2016 HIGHLIGHTS FROM THE CCID ANNUAL RESIDENTIAL DIPSTICK1 SURVEY 2016 – A PRECINCT-BY-PRECINCT COMPARISON PRECINCT 1

WHO’S LIVING IN P1? were HAD CHILDREN, The largest MOST OF WHOM 4% OF ALL RESPONDENTS 50%between 10% 50% percentage of coffee 25 and 34 years WERE OVER THE AGE OF 18. drinkers, who enjoyed coffee old (the highest shops 3 – 5 times per week. This is clearly a new residential node: percentage in this 40% had pets (dogs and cats) – It had the highest number of people who range across all the highest percentage in the CBD. People in P1 like to eat out, with the had lived in the CBD for only 0 – 6 months precincts). The highest percentage (10%) eating out (30%) and 1 – 2 years (30%). second biggest groups WHAT DID THEY DO? 6 – 10 times per week, and 60% eating in P1 (each with 20%) P1 respondents came from only 7 out 1 – 5 times per week. 50% WERE OWNER-OCCUPIERS (joint with were aged 35 – 44 professional fields, the top two being: P4) rather than renting out their property to and 55 – 64, the latter someone else (10%) or renting an apartment being the highest SHOPPING/LEISURE HABITS The top three retail venues: themselves (40%). percentage in this older age range. 20% 20% The financial Creative sector industries Large chain Grocery Takeaway 60% WERE MALE – THE HIGHEST PERCENTAGE OF MALES IN THE CBD. THE REMAINDER WERE SPREAD retailers stores outlets EVENLY BETWEEN:

Architecture & engineering THEY WANTED TO SEE MORE: The highest percentage working full-time for a company. Media, marketing, advertising & publishing Movie theatres 80%30% lived 0 – 0.5km from their place of work/study, while Healthcare Extended shopping hours 20% lived 0.5 – 1km from their place of work/study. However, in spite Formal retail & sales of their proximity to work, 60% said they drove to work. Education, training & libraries Vets/pet shops/public toilets with changing facilities for children

PRECINCT 2 P2 respondents were the happiest What do they do? WHO’S LIVING IN P1? THEY WANTED living in the Central City, with 50% P2 respondents came from a very 21% OF ALL RESPONDENTS TO SEE MORE: indicating they were very happy and diverse range of professional fields 35% indicating they were pretty happy. (18 in total), the top three being: had lived in the CBD for The financial sector (13%) more than 5 years, coming Computer and ICT (10%) 38% had children (vying with P3), second only to P4. Of these, 17% had EXTENDED Creative industries (8%) lived here for 10 or more years. 23% most of whom had 2 kids (13%) SHOPPING HOURS of which 15% were over the age of 18.

48% were owner-occupiers, Highest percentage of 42% rented, and 10% owned 38% had pets (dogs, cats 40% respondents indicating but rented out to tenants. and rabbits) they were self-employed/working MOVIE THEATRES freelance. Likewise, it had the joint were between 25 and 34 years old. 38% ate out at least 1 – 2 times highest percentage of respondents (33%, 33% The second biggest group in P2 per week, the highest of all with P4) indicating they live 0 – 0.5km (25%) were aged 45 – 54. precincts, while 27% ate out from their place of work/study. 3 – 5 times per week. SHOPPING/LEISURE HABITS PUBLIC TOILETS Highest percentage of THE TOP THREE RETAIL VENUES: visited coffee shops at least bicyclists across all precincts Grocery stores WITH CHANGING 17% Large chain retailers FACILITIES FOR 33% 1 – 2 times per week, while were retired or semi-retired Small boutiques & takeaway outlets CHILDREN 25% did so 3 – 5 times per week. 6% – the highest of all precincts and the only one worth noting.

1 232 respondents participated in the 2016 survey, which was conducted online. Please note that not all respondents answered all questions.

42_IBC_CONCLUSION.indd 42 2017/04/10 1:30 AM THE STATE OF CAPE TOWN CENTRAL CITY REPORT 2016 IN CONCLUSION

PRECINCT 3

WHO’S LIVING IN P3? WERE had children, most of which What did they do? 39% OF ALL RESPONDENTS FEMALE 39% 16% were over the age of 18. Those who worked indicated they – THE HIGHEST 36% had lived in the CBD either came from as many as 19 professional PERCENTAGE OF fields, the top two being: 2 – 3 years or 5 – 10 years ALL PRECINCTS. (split exactly 50/50). P3 vied with P1 for having the highest number of respondents who visited coffee shops in the CBD 60% rented the 3 – 5 times per week. property they lived in – the highest across 14% 12% all four precincts. 31% Computer & ICT Media, marketing, had pets, advertising & were owner-occupiers mostly cats. publishing and 9% owned but 31% ate out 20% rented out to others. 1 – 2 times The next three highest were: Creative industries (9%) SHOPPING/LEISURE HABITS per week, while Architecture & engineering (6%) were between 25 Top three retail venues: 27% 3 – 5 times Formal retail (6%) 48% and 34 years old, per week 1 Grocery stores 2 Large chain second only to P1. The second retailers 3 Takeaway outlets 54% worked full-time for a company. biggest group was 34 – 44 (18%). What they wanted more of: 29% were self-employed/freelance. Vying with P4, P3 also had the 1 Extended shopping hours 3% were students. 26% lived 0 – 0.5km highest number of respondents 2 Public toilets with changing from their place of work/study, 20% lived aged 18 – 24 (7%). facilities for children 1 – 3 km away. 41% drove to their place 3 Movie theatres of work/study, 29% walked.

worked PRECINCT 4 had pets, WHAT DID THEY DO? full-time for 57% 32%including Those who worked 49% WHO’S LIVING IN P4? indicated they came from a company. 29% were OF ALL RESPONDENTS were male dogs, cats and rabbits. 36% as many as 22 professional self-employed/freelance fields (the most diverse (vying with P3). 6% were 39% had lived in the CBD either 5 – 23% HAD CHILDREN, MOST OF WHOM of all precincts), the top students (the highest of all 10 years (21%) or more than 10 years WERE OVER THE AGE OF 18 five being: precincts). 33% lived 0 – (18%) – making P4 the area where (BOTH FIGURES VYING WITH P2). 0.5km from their place of respondents had lived the longest. Media, marketing, work/study (vying with P2). 1 advertising & 41% walked to work (the publishing (11%) highest of all precincts). were owner 41% occupiers VISITED Creative SHOPPING/ COFFEE SHOPS LEISURE HABITS 50% (vying with P1). 2 industries (10%) 34% rented and 16% owned IN THE CBD TOP THREE RETAIL VENUES: but rented out to others. 1 – 2 TIMES Grocery stores PER WEEK, Medical practitioners Large chain retailers WHILE 27% & technicians (7%) 3 Takeaway outlets were between 25 and DID SO 34 years old, while 27% were 3 – 5 TIMES Architecture & 34 – 44 (18%). Vying with P3, WHAT THEY WANTED MORE OF: 28% A WEEK. engineering (6%) P4 also had the highest number of respondents 4 Extended shopping hours aged 18 – 24 (7%) and was the only precinct Public toilets with changing 33% ATE OUT 1 – 2 TIMES PER WEEK, Computer & where respondents indicated they were AND 23% 3 – 5 TIMES PER WEEK. facilities for children between 65 – 74 years of age (5%). 5 ICT (5%) Movie theatres

42_IBC_CONCLUSION.indd 43 2017/04/10 1:30 AM IN CONCLUSION FUTURE REPORTS, PROJECTS AND BLUE-SKY THINKING

Since the publication of The State of The publisher of this annual investment congestion, and hopefully also achieve Cape Town Central City Report: 2012 – guide looks forward to tracking the the reconnection of the CBD to the sea, A year in review, the first edition in this progress of certain projects mentioned as the freeways that have for many years series, the landscape of the Central City in this report with which the Cape divided the city from the harbour are has been fast evolving, both in terms of Town Central City Improvement District redesigned and possibly taken either to its changing horizon and human activity is involved (such as the public space ground level or even below. This would on the ground. management pilot mentioned on pg 9). transform the Foreshore in the same way Likewise, the wealth of data that We also look forward to a number of that the demolishing of San Francisco’s now presents itself on an annual basis new developments in the CBD that are Embarcadero Freeway or the removal of allows not only for extensive year- expected to be revealed to the public in the Cheonggye Freeway in Seoul had on on-year comparatives to be tracked, 2017, and that will in turn be contained those two downtowns. but for new insights to continually in our next report. Among these are In the words of the American architectural present themselves. During 2017, for the results of the City of Cape Town’s critic and educator Paul Goldberger, example, we will be researching the Foreshore Freeway Precinct project and, “urbanism works when it creates exact numbers of residential units that with it, the incorporation of affordable a journey as desirable as the destination”. currently exist in the CBD, along with housing (some of the proposals The ongoing development of and investment those planned for the next few years submitted envisage up to 4 000 units) in the Cape Town CBD is certainly a journey until 2020, to begin to determine more that this will bring to the Central City. we look forward to travelling with all those accurately the residential population of The proposals also had to incorporate who have an interest in this area, in whatever the Central City. innovative solutions to alleviate traffic way they may touch the Central City. ACKNOWLEDGEMENTS & CREDITS

Business Process Enabling South Africa Department of Rural Development and South African Property Owners (BPeSA) Land Reform, National Government Association (SAPOA) Cape Town International Convention Centre Events Office, City of Cape Town South African Property Transfer Guide (SAPTG) 2016 Integrated Annual Report Geomatics & Geographical Information Spatial Planning and Urban Design, City of Cape Town International Jazz Festival Systems (GIS), City of Cape Town Cape Town Cape Town Tourism Geocentric Information Services The Cape Bar Climate Information Platform (hosted by Horwath HTL South Africa The Mayor’s Office, City of Cape Town the University of Cape Town) Metrorail Transport and Urban Development Authority Corporate Service Directorate, City of Ministry of Economic Opportunities, (TDA), City of Cape Town Cape Town Western Cape Government Trade & Investment Department, City of Cape Creamer Media (for Engineering News, New Media Publishing (for 2016 Best Town (for Economic Performance Indicators August 2016) of Cape Town Central City Guide) for Cape Town, Quarter 2 April-June 2016) Department of Community Safety, Planning & Building Development Management Wesgro Western Cape Government Department, City of Cape Town WinDeed Department of Economic Development, Property24 City of Cape Town PropStats (Institute of Estate Agents of SA)

EDITORIAL TEAM PUBLISHER Cape Town Central City ART DIRECTOR Sean Robertson Scott Arendse, Truth Coffee, PRINTER Tandym Print South Africa Improvement District (CCID) PHOTOGRAPHIC CONTRIBUTORS Brent Smith, Mother's Ruin, Haas, CTICC, WITH THANKS ALSO TO THE CCID PRECINCT & EDITOR & AUTHOR Carola Koblitz Bruce Sutherland (courtesy Infrastructure Photos, The NIGHT MANAGERS: Carlisle Maranky, SENIOR RESEARCHER Alex Jongens City of Cape Town), Carola Koblitz, Company's Garden, Nardus Mmiselo Ntsime, Paul Lotter RESEARCH & COPY EDITING Brent Smith Ed Suter, Inner City Ideas Cartel, Engelbrecht, House of Machines, (Urban Management department), MANAGING EDITOR Aziza Patandin Anita Reed, Johan Dempers, Claire Gunn, Jade Maxwell-Newton Martinus "TJ" Jenkins, Gary Dyssel

DISCLAIMER While every effort is made to ensure the correctness of all content, the publisher takes no responsibility for the accuracy of statements or content, and can accept no liability for errors, ommissions or inconveniences arising thereof. All text, images and design is subject to copyright and any unauthorised duplication is prohibted. All work and contributions to this report have been acccepted in good faith that all permissions have been granted.

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