Sandton development

In just four years, Sandton is scheduled to see the opening of Discovery’s latest 87,000 square metre head office.

The head office is to be developed by Growthpoint Properties and Zenprop, in a joint venture which has been called the largest single commercial office development of Africa.

55% of the building will be owned by Growthpoint, as the remaining 45% will be owned by Zenprop.

Growthpoint’s CEO, Norbert Sasse explains that this is systematically four/five years’ worth of property acquisition – A longer term project than it may seem.

The head office will be situated at the corner of Katherine Street and Rivonia Road, a region which has become a commercial development centre during recent years.

Growthpoint did not disclose totals, however they assured of a cost effective development.

Discovery currently expects to occupy the new building with a lease of 15 years – to quarter 5,000 employees who are currently housed across the company’s existing four buildings situated in Sandton CBD.

The office division director of Discovery, Rudolf Pienaar claimed the development location is within prime property, owing to its close proximity to Gautrain Station and Sandton City.

The development aims to have a five star green rating, alongside being a new landmark on the Sandton skyline. This is as they believe green buildings may create a motivated workspace as well as sustainability and the reduction of utility bills.

A representative from Boogertman & Partners architectural company, explains the targeting of the five star green rating is due to the proximity of public transport, with plans for a Rea Vaya Bus Rapid Transit System. Acquired properties were also sustainably demolished and the building is to feature recycling and natural lighting.

The number of speculative developments in Sandton alone is owed to for un-let prime office space vacancies in the area increasing to 11.3% during the second quarter of 2014, up 11% from the last quarter. This is as reported by a recent South African Property Owners Association (Sapoa) office vacancy survey, stating that from the second quarter of 2013 to the first quarter of 2014, the Sandton office node had large responsibility for the majority of increases in prime vacancies.

The market viewed 72,500 square metres vacated, 119,000 square metres let and 192,000 square metres added from developments. Furthermore, it is forecasted that following the completion of commercial developments, Sandton’s office supply is to increase to 1.9million square metres over the upcoming three to four years.

Webber Wentzel and Sasol are assumed to occupy offices in the suburb during 2016, occupying 40,000 square metres and 68,000 square metres respectively. Sanlam and Santam are also prepared to start up operations in Sandton.