Investment in the Inner City is booming thanks to the continuous hard work by the Central Johannesburg Partnership (CJP) and the Johannesburg Inner City Business Coalition (JICBC).

A study recently completed by the CJP reveals that members of the JICBC have invested nearly R4 billion between 2006 to date in the Inner City of Johannesburg. The study, completed by Hans Jooste, General Manager of the CJP, also indicates that capital investment by the private sector in public space and including joint ventures is sitting at a staggering R27,4 million from 2006 to date. Further investment of R120 million in the public space is planned over the next three years.

Many members of the JICBC are also committed to and are members of Joburg’s Inner City improvement districts (CIDs). A clear indication that improvement management of the public space supports and enables investment by the private sector in property in the Inner City.

The JICBC, managed by the CJP, was formed in 1997 with the aim of ensuring economic growth and the revitalization of the urban environment so as to deliver an improvement in the quality of life for all city stakeholders and role-players. According to Mr Jooste, “during the past ten years, the JICBC has been a strong lobby group working on behalf of Inner City property owners, developers and corporate bodies, regularly interfacing with the committees, utilities and agencies of The City of Johannesburg, in order to share information and ideas.” The JICBC is a signed member of the Executive Mayor’s Inner City Regeneration Charter.

The approximate amount of operational funds invested by the private sector through city improvement districts, safety initiatives and joint ventures in the Inner City as of 2006 to date total R84 million. There are currently six legislated CIDs in the Inner City, including Braamfontein Improvement District, South Western Improvement District, Retail Improvement District, Central Improvement District, Benrose Improvement District and Legae La Rona Improvement District. These CIDs are private sector initiatives and financed by private sector funds.

Joint ventures between the city and private sector in public spaces totalled R10 million and included the High Court Precinct, Jewel City, Hoek Street Linear Market and the Retail Improvement District Strategic Upgrade project.

Key private investments in the Inner City include:

Absa Campus – Substantial investment has been done in the south eastern sector including roads and pavement upgrades, and development of the Absa Towers West to the value of well over R1 billion.

Standard Bank Block – Substantial investment to the value of R73 million has been done in the south western sector including the purchase and site development of the Ussher site, parkade, and public space upgrade.

Main Place (Zurich Development) - Substantial investment has been done also in the south western sector to the value of R500 million.

FNB Bank City - FNB Bank City precinct is in process of developing to the west by constructing a parkade and upgrading properties purchased to the north. The estimated development is R 100 million.

Old Mutual has a huge portfolio in the Inner City and their investment between 2006 and 2010 is estimated at R2,2 billion.

Urban Ocean Property Developers have developed properties into upper class residential units and investing in the regeneration of some of their properties into hotels and retail with an approximate total of investment by 2010 of R 1 billion.

CircleVest /Atterbury Property Developers have developed hotels in the south western area including the Mapungubwe Hotel at a capital cost of R55 million and public space upgrading of R 80 000. Isibaya House with a capital cost was R 40 million and R 100 000 public space upgrading. The pending Newtown development will be approximately R 1 billion. This includes public space upgrading of R 10 million.

South Point Properties have redeveloped buildings into residential units with a total capital investment by 2009 of R 183 million.

City Properties are one of the major residential and retail developers in the Inner City. They provide a large portion of the up market affordable residential units in the Inner City.   To date their capital expenditure has been R 450 million and their planned capital outlay to 2011 will be R 800 million. Total capital spent on public space upgrade to date is R 2 million.

The Affordable Housing Company (Afhco) is a major residential and retail developer in the inner city. They provide a large portion of the upmarket affordable residential units in the Inner City.  To date their capital expenditure is R 300 million and their planned capital outlay to 2011 will be R 750 million. Total capital spent on public space upgrade to date is R 4 million. They are involved in numerous social projects and will be spending approximately R 5 million thereon. They finance and support a local private school, ‘Citykidz’, in the Inner City area.

Background

Since its establishment in 1992, the Central Johannesburg Partnership (CJP) has investigated international and local trends in urban renewal. In 1998 the CJP was restructured as a private, non-profit company focusing on the revitalisation of the city. This independent Section 21 company focuses on serving business in the form of the JICBC – their primary client – with exceptional quality as well as forging a close working relationship with the City. One of the most successful interventions pioneered by the CJP has been the establishment of City Improvement Districts (CIDs). A CID is a defined geographic area within which property owners agree to pay for certain services to enhance the physical and social environment of the area. The services provided are supplementary to those provided by the local authority and usually include safety and security patrol officers, pavement cleaning, litter collection, maintenance of public space and the removal of illegal posters. Kagiso Urban Management manages all the CIDs in Johannesburg, as well as managing the Central Johannesburg Partnership.