Tower Property Fund has begun the move into the residential property sector through the exciting development of a residential node within the Cape Quarter precinct.
The De Waterkant development, situated at 32 Napier Street in Cape Town’s CBD, will be made up of 11 residential apartments ranging in size from between 66 square metres and 170 square metres per apartment, with balconies adding further size to each. The ground and first floors of the building will be used for commercial tenants and totals 546 square metres.
There is currently a 773 square metre building on the site that will be demolished so that Tower can realise the full value of the property and utilise the full bulk capacity of 2 092 square metres. Residential apartments will generate the company an estimated 12% yield which makes the property class more attractive than both commercial offices and retail at this point. Tower will look to sell the penthouse apartment and retain the smaller apartments for letting.
In addition to this, Tower plan to add three levels of underground parking below the building and stretching down Napier Street. This will add 132 new parking bays to an area that is sorely lacking in this valuable commodity.
“We cannot keep up with the demand for parking from buildings within the area,” explains Marc Edwards, CEO of Tower. “These new parking bays will generate almost 24 hour revenue as they will also be in demand at night due to their location to the stadium for people attending concerts and other evening events.”
Edwards further explains that there is a high demand in the area for upmarket residential apartments with apartments currently selling out for approximately R40 000 per square metre.
“Potential investors have already approached us to reserve apartments despite the fact that the development has only just been made public. There is no intention of putting residential space into the Cape Quarter Square (the main Cape Quarter property) however we have identified opportunities for further residential development in the precinct,” concludes Edwards.