collectively on supplementary public space safety, cleaning and maintenance is estimated to be about R61-million annually. The Gauteng Partnership Fund (GPF) has attracted more than R3.5-billion in private sector funding for affordable housing in the province since 2012. The Brickfields housing and rental development in Newtown was funded by the GPF and implemented by the Johannesburg Housing Company (JHC) as one of the first inner-city rejuvenation projects. JHC is a leader in converting bad buildings to useable rental space. The Johannesburg Development Agency (JDA) projects range broadly across many areas within the city, and include plans to use transport hubs to improve the lives of residents living in previously neglected areas. Private developer Indluplace Proper ties has purchased nine large apar tment blocks, tak ing its total buildings in central Johannesburg CBD, Berea and Hillbrow to 23: 33% of the units are bachelor pads, 22% are two-bedroomed flats. The listed company (its major shareholder is Arrowhead) intends to “aggressively grow its portfolio” of high-yielding properties as it believes the rental market has huge potential.
Property developments Quite what the future of office space will be remains to be seen in the wake of Covid-19. Investment and pension funds are heavily invested in commercial and residential p ro p e r t y s o t h i s i s s o m e t h i n g t h a t w i l l b e c l o s e l y monitored in the early 2020s. The hugely successful Sandton model of office and accommodation development is being replicated across the province. Sandton’s 10 000 businesses and 300 000 residents are spoilt for accommodation choices, but city-like developments are springing up in other parts of Gauteng as well. The newest is Castle Gate Lifestyle Centre, which is being built in Pretoria as the first phase in a multi-use development that will eventually comprise offices, medical facilities, a hotel along with a retail centre and more than 1 000 residential units. The R6-billion project is being undertaken by Atterbury and the Carl Erasmus Trust. The biggest is Menlyn Maine in the eastern suburbs of Pretoria. Not only is this a huge multi-use project, it also aims to be South Africa’s first “Green Precinct”. Professional services and consulting firm PwC has chosen the Waterfall City estate near Midrand as the site for its R1.5-billion headquarters, housing 3 500 employees with a total of 40 000m² of lettable space. The building is owned by Attacq and developed by Atterbury. Rosebank’s popularity as an office node continues to grow and Melrose Arch has proved a popular development, but none of this has stopped Sandton continue to expand and it remains first choice as the national base for several large companies. Recent new headquarters have been constructed for Discovery and Sasol. The trend called “semigration” has been having a downward effect on Gauteng’s residential property prices for some time. Semigration refers to people moving within the country – not quite emigrating – to the Western Cape. Pam Golding Properties CEO Andrew Golding told the Sunday Times in November 2019 that the Cape drought had led to other areas such as the Garden Route and the north coast of KwaZulu-Natal becoming more popular as destinations. ■
GAUTENG BUSINESS 2020/21