Industry News

A look at Cape Town’s massive new R5 billion property development

Richmond Park will be developed on 84ha of land as a landmark business park and mixed-use precinct consisting of retail, light industrial, commercial and warehousing property development.

The property has bulk development rights of around 300,000m² over the next 5-10 years, developers, Atterbury noted.

The development itself has broken new ground, with the land being leased from the Richmond Park Community, who won the rights to the region in one of the biggest land restitution cases in the country.

The community is a 25% shareholder in the development, and has leased the land out on a 99-year basis.

According to Atterbury, the development will be a massive undertaking, aiming to be on the same level of the Waterfall development in Midrand, Gauteng.

The development is mixed-use, and the structures being build will be dependents on tenants, the group said. So far, however, indications are that the majority of the development will be warehouse developments ranging from 2000sqm to 50000sqm boxes.

“The initial 300,000sqm development phase of Richmond Park is anticipated to attract investment of up to R5 billion. This will make it one of the biggest new commercial developments in Cape Town and Atterbury’s biggest development yet in the Western Cape,” the group said.

In February 2017, Atterbury said that progress on the development was on track and on schedule, with the landscaping being complete by December 2017, and construction commencing on some of the structures around the same time.

The development will also see a new mall being built, called Richmond Corner, which will be a convenience-orientated retail centre measuring approximately 7000sqm anchored by Pick n Pay Super Market and Clicks Pharmacy with a freestanding Planet Fitness gym measuring approximately 3500sqm.

The Centre will comprise of about 23 shops consisting of National food outlets to convenience orientated line shops all to complement each other. Construction of the Shopping Centre is planned to commence in March 2018 with the planned opening date set for March 2019.

As part of the project, the developers will be investing around R150 million for surrounding road infrastructure upgrades and access to the development.