R1.3-billion Newtown Junction opens in the Jo’burg CBD next week
Johannesburg, 19 September 2014, BizNews
The 85 000m² new development includes a 38 000m² shopping centre, some 39 000m² of prime office space, a gym and basement parking for 2 400 cars. Construction on another key component of the development – a 148-room, 8 000m² City Lodge hotel – began this month and will be complete at the end of 2015.
Attacq and Atterbury Property Developments (APD) are 50/50 joint shareholders of the Newtown Junction development. However, through its 25% shareholding in APD, Attacq's holding is an effective 62.5%.
Situated in the heart of Newtown – flanked by the Market Theatre and alongside the M1 Motorway – the project has strong support from the Joburg Property Company (JPC).
A major part of the office component has been taken up by Nedbank for its Newtown Campus, which is nearing completion and on track to achieve a 4 Green Star SA rating from the Green Building Council of South Africa.
Leading retail companies and brands that have secured space include Pick n Pay, Ster-Kinekor, Truworths, the Foschini Group, Mr Price, Busboys & Poets, Life Grand Cafe and Shoprite. The gym will be operated by Planet Fitness.
Urban regeneration
Morne Wilken, CEO of Attacq comments: "We are proud to be investing in the Newtown Junction project, which is one of the most exciting developments in the Johannesburg CBD. In addition to being located in the vibrant and historic Newtown precinct, it is part of an urban regeneration effort with the City Council." James Ehlers, Managing Director of Atterbury Property Developments, says the centre is on track to open on 25 September 2014 – in spite of delays caused by recent construction industry strikes.
"The development is anchored by its retail component and will benefit from the offices as well the leisure and lifestyle elements of the gym and hotel. It's an enhanced and safe mixed-use node within Newtown. Originally meant to be just a shopping centre project, it changed at the onset into a mixed-use development, in partnership with the city and the South African Heritage Resources Agency," Ehlers adds.
Supported by the South African Heritage Resources Agency, the developers have retained some of the old structures. For example, the 100 year old "Potato Shed" was taken off site when Newtown Junction's multi-level basement was being constructed and then placed back in the exact position.
"It is believed that Newtown Junction is the biggest private development in the Johannesburg CBD since the Carlton Centre was constructed in the 70's. The Johannesburg City Council (the owner of the land) has played a big role in ensuring that it is completed successfully and that the economic targets of the City are met during the process," says Wilken.
Newtown Junction's development created around 2 700 jobs during construction alone, of which 850 were for local unemployed people. During the operational phase it is estimated that there will be around 4800 people working in the complex.