A new development storm looms in Cape Town where the country's richest property group plans to demolish an office building inside an exclusive residential estate — and replace it with something twice the size.
JSE-listed Growthpoint, owners of the V&A Waterfront and other shopping malls, this week confirmed it was looking to “reinvest” in its Nautica office building inside The Waterclub, billed as the country's “most prestigious and exclusive blue flag marina complex” in Granger Bay.
But property owners at The Waterclub are rallying to resist a proposed seven-story apartment block plan, presented to them last month. The homeowners association has obtained legal advice ahead of an expected development application, and a memo sent to homeowners spoke of “lively discussion” between The Waterclub and Growthpoint representatives.
“In summary, they are considering a building of approximately 62 apartments, comprising 11,000m² and seven stories high, with two parking bays per apartment,” Waterclub Association chairperson Selwyn Jacobson said in the memo, after a meeting with Growthpoint in mid-July. “The proposed new building will therefore be more than double the size of the current Nautica building, and it is expected to be built over the whole of the Nautica property footprint (as opposed to the current building which uses only a modest portion of the erf).
“While we understand the need for them to optimise their asset, we do not agree with what they are proposing to do,” Jacobson said, adding owners needed to be ready to object to an expected town planning application ahead of the development.
Growthpoint Properties describes itself as one of the largest South African primary real estate company listed on the JSE, “an international property company with assets in South Africa, Eastern Europe, Australia and the UK”. It co-owns the V&A Waterfront with the Public Investment Corporation.
The Waterclub's 110 apartments are sandwiched between the V&A, Cape Town Stadium and the five-star Radisson Blu Hotel. The complex has its own blue flag marina, allowing owners to moor their boats metres from their balconies.
The apartments, which cost up to R35m, are arranged in five blocks , each with sweeping views of Table Bay and the marina breakwater.
The Nautica building, adjacent to the residential blocks, accommodates upmarket offices and is touted online as a “uniquely themed” office complex. Growthpoint’s latest annual report says the building is worth R85.5m.
I’m not against progress, but for two years it will be a building site
— The Waterclub apartment owner
One apartment owner said residents were upset about the scale of the proposed development. “I’m not against progress, but for two years it will be a building site,” he said, adding that the plan involved changing the front entrance.
Potential disruption was flagged in the Waterclub Association letter: “Concern was raised that the inconvenience to the residents would be considerable — different entrance, redirected traffic, noise, vibrations, dust, security concerns and materially increased traffic volumes.”
A source with knowledge of the looming dispute said both parties were anxious to avoid a legal standoff and were committed to constructive engagement.
Paul Kollenberg, head of asset management: offices for Growthpoint Properties, said the company was in “no rush” to make changes to the Nautica building, but did intend to reinvest “in the next few years to ensure its ongoing relevance”.
“Buildings and built environments change over time. Growthpoint always seeks to respond to these changes to ensure our properties serve their best purpose in their locations,” Kollenberg said. “In the case of Nautica, we are exploring various options for how to do this, but haven’t yet settled on a primary use, so there is a long way to go until we can finalise a concept, design or time frame.
“Residential is one of the options under consideration that is more in keeping with the surroundings, given the property’s location in a residential area, but we also have other options on the table.
“We don’t have a defined timeline for our reinvestment in this property. Any development is likely to be a couple of years away. Even so, we have chosen to engage with all current stakeholders early. We have already had discussions with The Waterclub residents to share our initial thinking. They have highlighted that the development’s footprint is a key consideration for them, and we are looking at the alternatives. Any development decided on will take into account stakeholder feedback,” Kollenberg said.
Speaking on behalf of The Waterclub this week, Jacobson said the homeowners association was canvassing opinion regarding Growthpoint’s proposal.
“This matter is in the very early stages of a process of discussion between the various Waterclub associations and Growthpoint, and we are still trying to understand what Growthpoint has in mind. What we have received so far from Growthpoint has been shared with the owners and their views are still being canvassed.”
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