The City of Cape Town has approved a R300-million first phase development for the Khayelitsha Business District (KBD).
This will be one of the single largest private/public investments ever undertaken in a traditional township in South Africa, the City of Cape Town said in a statement.
The 73ha KBD is located in the heart of the sprawling township, next to the Khayelitsha railway station.
The development is a joint venture between the city, private sector and the Khayelitsha Community.
A key element will be the innovative legal framework which provides for the establishment of a Khayelitsha Community Trust, and will ensure community participation, local empowerment and the effective management of the development.
The development will include a 17 500m² retail centre, a service station, municipal offices, a bus and taxi terminus, a multi-purpose community centre, sports facilities and 1 000 residential units.
These facilities will complement the existing Magistrate Courts and regional offices of the Department of Social Welfare. The Department of Home Affairs is also planning to establish offices in the area.
Most of the required infrastructure, such as roads, bulk water supply and sewerage connections are already in place.
Construction of the sports facilities, which includes a cricket oval, has already commenced. The United Cricket Board has provided a grant of R500 000 towards this project.
A total of R250-million of the development cost is to be secured from the private sector while local, provincial and national governments are to provide an additional R50-million for the taxi and bus terminus, multi-purpose community centre and roads and other infrastructure services for the residential component.
The city has entered into an agreement with Rand Merchant Bank whereby RMB will secure the private sector funding for this project. RMB is involving its associates in the FirstRand Group such as Futuregrowth due to Futuregrowth’s empowerment focus and relevant experience in similar commercial developments. At this stage various financiers and investors, including international bodies, have expressed great interest.
According to Wayne van der Vent of Futuregrowth, the response of major retailers to secure space in the proposed retail centre has been exceptional.
“If everything goes according to plan, the centre will open its doors in the second half of next year”. – I-Net Bridge