Braamfontein landmark put up for sale
"There is a lot to be said for purchasing existing buildings in the current economic climate. The main driver for owners, occupiers and investors is expense – in some instances existing buildings of good quality and functionality can trade for as little as one-third the cost of a new build," says Jones Lang LaSalle South Africa head of capital markets Andrew Bradford."If you add the predictable timelines and avoidance of hassle, existing buildings trump new developments. We have achieved a number of successes in this space recently with demand for these types of properties far outstripping supply,"
Geographically, Jorissen Place boasts a prominent location at the foot of the Nelson Mandela Bridge with high exposure and within easy access of the M1 motorway and local retail.
Bradford believes the building’s walking distance proximity to public transport venture Gautrain’s Park Station and other public transport, as well as views across the city, make Jorissen Place a highly desirable real estate asset. The 18-storey granite structure offers corporate owner-occupiers or investors superior office accommodation. Designed by South African architect Louis Karol and completed in 1992, the building’s classical modernism architecture responds to its environment, providing an attractive return on investment.
Braamfontein itself has been given a new lease of life owing to the district’s regeneration initiative headed by the Johannesburg Development Agency (JDA) and property owners. Through the establishment of the Braamfontein Management District, this precinct has been transformed into an appealing and safe corporate district, educational centre, and entertainment and arts hub.
The closing date for private tenders is before month-end.
Between the late 1980s and early 2000s, the area went through a period of urban decay, causing an exodus of institutions and businesses to more affluent areas. It was degraded, but was fortunate in that its vacancy rates remained some of the lowest in the inner city, even during the worst of these times.
In 2002, the JDA and the City Council embarked on an R13-million regeneration programme for the area, realising how important the location and function of Braamfontein were to the local economy.
Since then, the JDA has spent more than R55-million on the precinct, renewing the area as a centre of business, entertainment and education.
There has also been significant private- sector investment in the precinct, with almost R4-billion spent by investors and developers over the past seven years, resulting in rental rates and land values increasing, and vacancy rates dropping below 10%.
The City Council says that Braamfontein remains the fourth-largest node for office space in the city of Johannesburg and is home to a number of South Africa-based multinational corporations as well as one of the country’s educational institutions, the University of the Witwatersrand.
By: Megan Wait
Edited by: Martin Zhuwakinyu
