Cape Town’s Harbour Arch development is set to create 20 000 jobs
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JOHANNESBURG - LENDER Absa has partnered with Amdec Group, a South African developer of new urban precincts, to develop the first tower of the Harbour Arch project, a R15 billion private equity investment, on the Foreshore in Cape Town, with potential for 20 000 job opportunities.
The development is announced at a time the local and global economy has been knocked by the Covid-19 pandemic financial fall-out, which has seen South Africa’s unemployment rocket.
In a joint statement yesterday, on Tuesday, the companies said as a long-time partner to Amdec, Absa had provided a loan of R1.43bn in addition to an existing facility of R210 million to bring the project into fruition.
“This is one of the largest deals the Absa Commercial Property Finance division has done in recent years. The construction of Harbour Arch Tower One – which includes parking, street-level retail, an eighth-floor lifestyle podium lined with bustling coffee shops, pavement cafes, and restaurants, and 432 luxury apartments – is already underway and is expected to be completed in April 2023,” the statement said.
Amdec chief executive James Wilson said the project would create in the region of 20 000 job opportunities for those in the building sector now and, over the longer-term, many more employment opportunities via the precincts retail, hotel and hospitality sectors.
“It is our hope that Harbour Arch will help to stimulate the local economy, boost investor confidence, and act as a catalyst for further development of the Foreshore area,” he said.
In a report published last year by the CCID, “State of Cape Town Central City Report 2019 – A year in review”, the estimated value of Central City property in 2019 was R44.1bn and and that the total value of property investments in the Central City – recently completed, under construction, proposed or planned – was R13.83bn.
“We are delighted to once again have the support of Absa in helping us to realise our vision for a new real estate landmark in the City of Cape Town,” said Wilson.
Mike Mortimer, the head: SA Coverage, Absa Commercial Property Finance, said: “Considering the economic downturn currently being experienced, we are thrilled to be associated with a significant development of this kind, one that augurs well for the future of Cape Town.”
The development of Tower One of the Harbour Arch follows the Amdec’s award-winning Melrose Arch mixed-use precinct in Johannesburg, and was a clear indication that the South African public has embraced the concept of new urbanism, where residential, commercial, retail, hospitality and lifestyle elements are brought together in one all-encompassing environment, the statement said.
Amdec has partnered with Absa on a number of the group’s other projects, including The Yacht Club in Cape Town, Westbrook in Port Elizabeth, the recently completed Melrose Square at Melrose Arch, and several Evergreen Lifestyle villages.
He said Harbour Arch would be the first large-scale mixed-use precinct in the Cape Town central business district.
“It will encapsulate all the principles of new urban living, and offer a safe, convenient, sustainable and enjoyable community-focused environment where Capetonians from all walks of life can live, work, and play within an iconic landmark setting.