Trendy new apartments in Pretoria CBD

Pretoria's city centre is being transformed into a vibey 'live, work and play' precinct, with a number of government and private initiatives aimed at rejuvenating and attracting people back into the CBD. 

Construction on 1 on Mutual, a R161 million mixed-use development just off Church Square, started in June last year and will provide 142 modern rental apartments including bachelor, one- and two-bedroom units.

Many of the streets and shopping arcades have already seen upgrades with modern shop fronts, and well-kept, clean pavements that stand out as beacons of progress from the other more derelict city blocks around them. There is an undeniable 'city buzz' as pedestrians mill about in every direction, which on a Tuesday morning, seemed to be a clear indication that all is 'alive and well' with many people still choosing town as their most convenient shopping destination.

Those who work and study in the city need decent accommodation, shops, fast food outlets, gyms and other amenities. There's also a trend in people wanting more upmarket accommodation, and in response, two new mixed-use developments are set to change Pretoria's cityscape heralding in a new age of modern city apartment living .

The R537 million investment by JSE listed REIT, Octodec, will boost urban renewal while providing much needed housing for those who work in the city centre. Octodec has been active in the Pretoria CBD since the 1960s, which comprises a large chunk of their R11 billion portfolio of 320 properties, with a sizeable number also in the Johannesburg CBD. Among others, they own Killarney Mall, Woodmead Mart, four convenience centres in Pretoria and some light industrial properties. City Property is Octodec's asset management arm, and the bulk of the portfolio is made up of residential, retail and offices in the CBDs, with significant value being realised through the redevelopment and upgrading of these properties.

Artist's impression of Centre Forum. The second major development worth R375 million has broken ground and the estimated completion date is mid-2017.

Urban renewal is a key focus, says Jeffrey Wapnick, managing director of Octodec. "We are passionate about the Pretoria inner-city and are proud to play a part in restoring South Africa’s capital to a vibrant epicentre of culture, arts, government and business."

Construction on 1 on Mutual, a R161 million mixed-use development just off Church Square, started in June last year and will bring to market 142 modern rental apartments including bachelor, one- and two-bedroom units. This more "upmarket" offering is in tune with the standard of living many people who work in the city are starting to expect, says Wapnick.

With a significant number of government employees working in the Pretoria CBD, and government's investment in new buildings such as the recently completed 6 star green rated national Department of Environmental Affairs headquarters in the Arcadia node and the planned new Tshwane House municipal buildings, along with other city upgrade initiatives, more people will be demanding quality accommodation close to work.

Centre Forum (before), a convenient shopping area between Lilian Ngoyi, Struben and Johannes Ramokhoase streets, will be redeveloped into a "people-friendly" residential and retail hub.

Apart from the residential component, 1 on Mutual will offer 400sqm of prime offices and 1 550sqm of retail space. Safe parking will be provided with 210 bays in total.

Embracing the city’s legacy, the red-brick Volksbank heritage building is being included in the development, with the facade remaining intact. The interior will  be refurbished with the addition of an outside landscaped courtyard between the existing and the new building. A new arcade, linking 1 on Mutual to the existing Capitol Towers building, will also add to the retail space.

"This new development will be popular with upcoming young urban professionals who are looking for a place to work, stay and play in the city," says Wapnick, with national retailers already expressing interest in the retail offering. 1 on Mutual is scheduled for completion in April 2016.

The second major development worth R375 million has broken ground and the estimated completion date is mid-2017. Centre Forum, a convenient shopping area between Lilian Ngoyi, Struben and Johannes Ramokhoase streets, will be redeveloped into a "people-friendly" residential and retail hub. It is also ideally located diagonally opposite the new Tshwane House site.

Many of the streets and shopping arcades have already seen upgrades with modern shop fronts, and well-kept, clean pavements that stand out as beacons of progress from the other more derelict city blocks around them.

The gross floor area of the retail space will comprise almost 5 000sqm. Two parking levels will provide up to 258 parking bays and the residential component will offer 400 upmarket apartments with a choice of bachelor, one- or two-bedroom units. The new development will also be home to a 3 000sqm a mega Shoprite store.

Wapnick says the new 012Central market at 385 Helen Joseph Street has been successfully launched and is held on the last Saturday of every month, with all sorts of foods and crafts on offer. It aims to encourage entrepreneurs, designers, artists and musicians, while luring people back into the city for a fun day out on the town. The space is also used as a venue and has recently hosted a whiskey tasting event, sneaker expo, weddings and 21st birthday parties.

The screening of rooftop movies at the Nedbank building every second Wednesday evening is a further initiative to "bring the city back to life".

On the subject of safety and crime, Wapnick says there is more violent crime in the convenience centres where there's more money. "We don't have what's happening in the shopping centres in the CBD."

City of Tshwane's Operation Reclaim aims to make the streets safe for pedestrians and Pretoria leads the pack with council rolling out free Wi-Fi close to Church Square. Roads are being repaired and transport upgrades include the new A Re Yeng bus rapid transit city centre route.

From an investor's perspective, Wapnick says their occupancy rate in the residential CBD space is about 98% and 99% of rent is collected, so non-payment is not a problem. He says if the accommodation is of a reasonable quality, people generally treat it well.

City Property has undertaken a number of office building conversions to residential flats, which provide clean and safe, access controlled rental accommodation.

With the new developments, they will start introducing some contemporary architecture into the CBD. Apartments at 1 on Mutual and Centre Forum will be slightly bigger than normal and with better finishes. Speaking about the market and demand, he says the average income per unit is estimated at R27 500, which justifies demand for these more upmarket accommodation options.

Wapnick says the developments are in line with their strategy to unlock value and continue delivering above average returns for shareholders.

He says the areas of excellence in the CBD are growing at a fairly big rate, and the huge injection of capital into upgrades and building conversions is  seeing a welcome transformation of Pretoria's cityscape.

"While I paint a bullish picture of the CBD, it does have its problems, but these problems are not insurmountable, and something needs to be done to bring some honour back to the CBD," says Wapnick. "The CBD is  a big shopping centre, why go east when people from Mamelodi can stop and shop in the CBD. The pricing might be slightly different, but there is not too much compromise on the quality."

At The Fields in Hatfield, student apartments start at R4 460 for a 30sqm bachelor, R5 355 for a 42sqm one-bedroom and R7 050 for a two-bedroom unit.

City Property has undertaken a number of office building conversions to residential flats, which provide clean and safe, access controlled rental accommodation. They've also upgraded office and retail space, with modernised arcades, shop fronts and pedestrian paving. For example, Centre Walk Arcade which represents high-end CBD shopping has outlets like Earthchild, Rage and Pick n Pay.

At The Fields in Hatfield, student apartments start at R4 460 for a 30sqm bachelor, R5 355 for a 42sqm one-bedroom and R7 050 for a two-bedroom unit. They are basic but clean with a small, modern built-in kitchen with granite tops, intercom, prepaid Wi-Fi, and prepaid electricity. This allows tenants to manage their costs better and building managers at City Property's residential blocks are "key" to running things well, with secure 24-hour controlled access.

"You've got to stay close to your assets," says Wapnick, and having a concentration of properties in an area makes it easier. They intend to continue growing the CBD and residential portfolio, unlocking the value of properties through development and thereby actively promoting urban renewal in the Pretoria and Joburg city centres. - Julia Hinton