As part of the City’s efforts to enhance the sustainability of the Cape Town Stadium, its Mayoral Committee today, 18 October 2016, recommended that Council approve a public participation process for the proposed lease of designated Stadium commercial space and parking. Read more below:
It is proposed that public input be garnered regarding the 10-year lease of internal office space, approximately 5 006 m ² in size and with approximately 1 000 internal parking bays at the Cape Town Stadium. Such a lease, which would be issued by public tender, would apply to a portion of Erf 1056, Fritz Sonnenberg Road, Green Point. This portion is zoned General Business Subzone 7 (GB7).
‘This proposal follows the recent granting of business rights for the Cape Town Stadium and forms part of a basket of efforts by the City of Cape Town to commercialise the Stadium and its surrounds so that it becomes a more viable asset for the residents of Cape Town and the generations to come.
‘The Stadium is strategically located with good public transport access and it must be noted that the area lends itself to a range of urban opportunities, which must be explored,’ said the City’s Acting Mayoral Committee Member for Finance, Councillor Johan van der Merwe.The City endorsed a business plan which was aimed at optimising the development opportunities and the marketability of the Stadium. This plan highlighted the need to lift some of the restrictive zoning and environmental conditions which were attached to the Stadium Precinct and to allow more mixed-use and economically viable activities in this area.
It is foreseen that the City would potentially receive lease income from the use of the property by the holder(s) of the rights. The City’s conservative valuation of the internal rentable spaces, which is based on square metres and excludes VAT, municipal services and parking, includes:
· retail space: approximately R60 per m² per month
· office space: approximately R40 per m² per month
· storage space: R20 per m² per month
The parking space has been valued at an estimated R1 000 per bay per month for basement parking and R500 per bay for designated retail parking.
The proposal to lease internal space in the Stadium also follows a recent issuing of the tender for the long-term lease of the City’s Granger Bay Boulevard site which is located next to the Stadium in Green Point. The construction value alone could be about R600 million and the City will retain ownership of this property. Such a development would also support the overall commercialisation of the Stadium Precinct to the benefit of further investment and job creation for the people of Cape Town. The City also wishes to enhance public use of the space.
If approved by Council, the public participation process for the lease of internal office and parking space in the Stadium could commence in November 2016 for three months.