New-look Golden Acre accommodation to welcome first tenants later this year

The redeveloped Golden Acre will welcome its first tenants as early as October, a key project stakeholders said this week.

Previously a well-known shopping mall landmark in the heart of Cape Town, the Golden Acre is being transformed into a mixed-use precinct featuring 415 rental units, associated amenities, and an upgraded retail area. A key feature of the project is its proximity to three key public transport nodes; the Adderley Street site sits at the junction of the city’s main bus, rail and taxi terminals.

Construction began last year, and work on the retail area will start in February, according to Lesego Majatladi, director of Gracht Asset Managers (Pty) Ltd, appointed by owners Putirex to oversee the redevelopment process.  

The project team is already collaborating with the City of Cape Town and the Central Improvement District to integrate the development into the CBD, with specific attention to access and security, Majatladi said. 

The fully-furnished rental units are geared for the ‘missing middle’ of young professionals seeking well-located accommodation close to their workplace, he said.  “If we provide people with reasonably-priced rental accommodation in the city, they could find themselves in a situation where they are walking to work and not having to spend as much on transport. It gives them a better quality of life,” Majatladi said.

The development comprises a portion of short-term rentals which will be used to cross-subsidising longer-term accommodation.

Built in the 1970s, the Golden Acre was one of South Africa’s first inner-city shopping malls, featuring both 65 000 m2 retail and commercial office space in a 24-story office tower, in addition to 800 parking pays.  Excavations during the construction process revealed it was built on the site of a 17th century storage dam.

The prospect of affordable rental housing has prompted positive reaction from various stakeholders, notably the City itself and the Mission for Inner City Cape Town. 

“The redevelopment will ultimately deliver well-managed and affordable rental housing aimed at working professionals who want to be closer to transport and employment opportunities in the Inner City,” the Mission said in a statement posted on social media.  

City of Cape Town Geordin Hill-Lewis has described the R1.2 billion investment as a "major boost" for the inner city. He noted that residents could save 30% to 40% of their income by eliminating long commutes.  

Putirex acquired the property from Growthpoint last year. Media reports pegged the sale price at R781-million.