Tower Property Fund moves into residential property – Napier street redevelopment

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.

Cape Quarter PV solar project up and running – exciting initial results

The Cape Quarter now features a bank of highly efficient solar panels on its roof.

This flagship property within the Tower Property Funds portfolio recently received an extensive PV solar system installation as part of the funds greening and occupancy cost reduction strategy.

702 solar panels have been installed on the roof of the Cape Quarter Square and so far initial results show that the installation is outperforming its expected cost savings – by 20%.

The project, which was managed by Spire Property Management, took several months of research and due diligence before a contractor was selected who could effectively deliver on the required results. “Sola Future Energy were selected to conduct the Cape Quarter PV solar installation,” explains Simon Penso, Head of Sustainability for Spire. “Once the project was given the final green light it took only a month, from mid-November to mid-December, to complete the onsite installation of the panels.”

“Sola Future Energy used specially manufactured mounting structures and modular systems that allowed for this speedy installation time. Sola have also given us an energy production guarantee on the predetermined amount of energy promised.”

The Cape Quarter PV Solar installation is being monitored through a roof top weather station that feeds results through to an online portal that allows Spire Property Management to check how the system is performing at any time.

Initial results indicate that the solar panels on the roof of the Cape Quarter will allow for an electricity saving of approximately R400 000.00 per annum. “These figures mean that the solar installation will pay for itself within eight years,” says Penso. The lifespan of the system is 25 years.

Marc Edwards, CEO of the Tower Property Fund explains that the Cape Quarter has also undergone lighting and other retrofits which will save the centre an impressive R1 million per annum in energy costs for the property. According to Edwards, there are additional exciting plans on the cards for even greater future energy savings at the Cape Quarter.

“Recent global research has shown that green buildings outperform normal buildings significantly – on average achieving rental premiums of 6%, capital value improvement of 12%, while reducing operating costs by 30%. Tower has set a clear strategy of occupancy cost reduction across the board for all the buildings within the fund’s portfolio, with a strong focus on “greening”, and as the funds flagship building we rolled out this solar retrofit at Cape Quarter first, but this will soon be followed by similar initiatives in other properties within the portfolio.

For more information on the Cape Quarter or the Tower Property Fund please contact (021) 685 4020.