Atterbury is very proud of its role in the relocation of British American Tobacco South Africa from its Stellenbosch head office of 25 years standing, to the prestigious V&A Waterfront. Atterbury’s Wouter de Vos and Gerrit van den Berg give insight into a landmark deal.
What is Atterbury’s involvement with the BAT development?
We partnered with the V&A Waterfront to negotiate and facilitate the transaction, which is a big move for BATSA after 25 years in Stellenbosch. Gerrit will be part of the project team and Atterbury will ultimately own 50% of the final product as part of our blue-chip property investment portfolio.
What is the particular significance of this development for Atterbury?
Firstly, BATSA is one of the largest listed companies on the JSE in South Africa, and we are extremely proud to have them as a tenant. Secondly, the V&A as an investment destination is world class, and we are very excited to have exposure in this significant South African landmark.
What was the design brief from BATSA?
BATSA specifically looked for a prime location and they found it… they couldn’t have asked for a better address than 1 Dock Road, V&A Waterfront! Aside from the proximity to the rest of the Waterfront’s facilities they were also very keen on a mixed-use development. The complete precinct is 19 000 square metres and Atterbury is involved in the south block, which will house the BATSA headquarters over 7 500 square metres from the first floor up, and a further 1 300 square metres retail space on the ground floor. It will be ground plus three floors, and two basement parking levels.
How far along is the project? What is the timeline?
Bulk earthworks have been completed and the main contractor, Neil Muller Construction, took over the site at the end of September. They’re progressing well and are currently busy with the surface bed, basis and basement columns. Occupation is expected to be November 2016.
What will the development cost?
The development cost of the south block, which is the BATSA area, has a total cost of R 211 million, of which we own 50%.
Do the site present any particular challenges?
It is a very tight schedule. Access is a challenge as the site is located in an extremely busy part of Cape Town. It is also located right next to the existing City Lodge, and because they have paying customers, on-site working hours are restricted to limit noise. That’s going to impose a big challenge when it comes to pouring concrete. It is also interesting working next to the canal, and there’s involvement from various engineers and canal specialists, as well as the V&A’s aquarium. They obviously have a lot of experience in developing in the Waterfront with all its particular considerations, and that brings a lot of comfort!
Anything else that might be interesting?
We are going for a five-star green rating in the building. And though we can’t divulge specifics yet, the team is in the final stages of signing an international luxury brand for the retail space downstairs, so we are very excited!
V & A overview
The V&A Waterfront is a 123-hectare mixed-use destination, and one of Africa’s most visited cultural and historical hubs. Set on the edge of a natural, historic working harbour with the iconic Table Mountain as its backdrop, it offers local and international visitors a cosmopolitan mix of experiences ranging from leisure, shopping and exclusive entertainment. It also offers prime residential and commercial property. The prime positioning of the V&A Waterfront boasts sweeping views of the ocean, city bowl and mountain peaks. Up to 100 000 people visit every day during peak season.
Contributing R259.1 billion in nominal terms to the South African economy over the last twelve years, the V&A Waterfront’s cumulative contribution to the provincial GGP since 2002 was over R227 billion. The property also reported a 19% increase in retail trade sales for 2014, marking four consecutive years of consistent growth since 2011.
Total visitor numbers have grown to 24 million a year by 2014 (at year end). Although the V&A Waterfront remains South Africa’s favourite tourist attraction for international tourists they account for only 23% of all visitors. Visits by locals increased to 63%, while 14% of visitors were from upcountry.
With 22 official landmarks on-site, it is also part of South Africa’s historical legacy. Jointly owned by Growthpoint Properties Limited and the Government Employees Pension Fund (GEPF), represented by the Public Investment Corporation Limited (PIC), the V&A Waterfront was developed in 1988 by the state-owned transport corporation, Transnet Limited, while official commercial trading commenced in November 1990.
