The City of Cape Town to auction development lease on the Foreshore Tower site

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26-01-2024
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Property Wheel
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The City of Cape Town is preparing to auction a lease opportunity of the bulk development rights on the Foreshore Tower site – a key property primely located next to the Cape Town International Convention Centre.

The site is vacant and located at the corner of Heerengracht and FW de Klerk Boulevard on a portion of Erf 270, zoned ‘General Business’. The current zoning permissions for the usable bulk rights is conservatively estimated at approximately 25 000m2 with the remainder Erf 192 Roggebaai earmarked for possible overflow parking.

“The Foreshore Tower site is strategically located so by releasing the footprint for development, the City will provide a sought-after opportunity for commercial property development, catalysing economic growth, creating employment opportunities, and generating revenue for service delivery throughout the city. It is anticipated that the development of this site will attract substantial investment from private property developers, for the construction of the Foreshore Tower and associated amenities,” comments Alderman James Vos, Mayoral Committee Member for Economic Growth.

The best use for the property would be mixed-use typologies based on the demand and the primary uses allowed such as a multi-level hotel, and leisure. However, the City says it is non-prescriptive of the use if it is in line with the zoning and development rights and complements the existing operations at the CTICC.

The planned development of the site was embedded when the City undertook a feasibility study for the development of Erf 270 concurrently with the planning for the CTICC 2 expansion around 2014, where the opportunity for the Foreshore Tower development was identified.

In terms of the legislation and policies that governs the management of public land, it has been determined that the subject property is not required for municipal basic services and the Foreshore Tower will be structurally and operationally integrated with the CTICC 2.

A 99-year lease will ensure a return on investment for the potential developers while allowing the City to generate revenue for service delivery.

The auction will take place on the 14th of March 2024, online and in-person.