R2 billion mixed development next to Cape Town's DHL Stadium set to enhance tourism

Sports fanatics can be assured that the R2 billion mixed development set to take place next to the Cape’s DHL Stadium will not impact operations and games and will operate normally.

This development will feature hotel, retail, and office spaces designed to create a lively, year-round destination that supports tourism, business, and local employment. It will boast a hotel with 190 rooms, 200 apartments, 3,000 m² of retail space, and premium-grade office space.

According to acclaimed property broker Ash Müller, the hotel will feature an international hotel brand.

But while the buzz and noise are being made about the planning, zoning, and economic development, Kelly Thuynsma, Head: Marketing - Cape Town Stadium (RF) SOC LTD, told Cape Argus it would be business as normal: "Stadium events will not be impacted by the development, as the stadium management team is in close communication with the developers to ensure business continues as usual for DHL Stadium."

James Vos, the City's Mayoral Committee Member for Economic Growth, who has been working behind the scenes for the greater Granger Bay development project, said the transition and transaction had many e-commerce opportunities. “I recently had the pleasure of leading the turning of the sod ceremony for The Granger, an exciting new mixed-use development that will bring fresh energy to the Cape Town Stadium precinct,” he explained.

“This development will feature hotel, retail, and office spaces designed to create a lively, year-round destination that supports tourism, business, and local employment. The Economic Growth Directorate worked hard to facilitate this transaction because it’s exactly the kind of development that brings Cape Town’s economic strategy to life, one that creates jobs, attracts investment, and supports small businesses."

Eddie Andrews, the City’s Deputy Mayor and Mayco Member for Spatial Planning and Environment, added that any issues related to noise, dust, and traffic will be managed during the construction phase in accordance with standard procedures and applicable regulations.

When questioned about the process of public participation, the City added that this had begun six years ago.

It detailed that the Granger Bay project was initiated in 2019. However, prior to this, the City embarked on the Environmental Impact Assessment and Land Use Management approvals for the entire Green Point Park and Stadium Precinct. The public engagement was extensive during this process, which included the creation of the Granger Bay site, resulting in a business zoning being achieved for the site.

“The Municipal Asset Transfer Regulations’ public participation process for Granger Bay was published on 11/04/2019, inviting public comments, followed by the Council approval on 31/07/2019. The tender for the development and lease of the property was advised on 16/08/2019,” the City explained.

The City explained that following the award of the tender and finalisation of the development lease agreement, the developer submitted the required site development plan to Land Use Management on 24/03/2023, which included the Traffic Impact Assessment (TIA). The land-use application was duly advertised and eventually approved on 01/10/2024.

Muller said via her Twitter account that the opportunity and location for office and hotel space were ideal for international and local conferences. “I cannot believe that this R2 billion development is finally breaking ground next to Cape Town’s DHL Stadium—a project that has been in the making for nearly 20 years and will include an international hotel brand,” she wrote.

"The demand is certainly there, and I would say that this area still has one of the highest office rental rates in the Western Cape (if not South Africa). Rentals range from R190 to R320 per m² (ex VAT).

“Cape Town has become the conference capital of South Africa, with the CTICC achieving record-breaking bookings for the next two years and talks about a CTICC expansion project. Pair that with the neighbouring DHL Stadium events schedule and the 1.2 million annual visitors that it attracts, and this city is a tourism magnet.

She also gave insight into the development: “The Feenstra Group and Devmark Property Group are developing the project. Rand Merchant Bank is backing the project. They have already broken ground, with completion set for 2028—good luck to the team involved. I am looking forward to seeing this project take off.”

The Green Point Ratepayers' & Residents' Association (GPRRA) said the committee had taken a decision not to comment further on this topic when approached for comment.

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