01 March 2018
March 01, 2018
In a groundbreaking real estate transaction, Barloworld, Atterbury and African Rainbow Capital have partnered as co-investors in the redevelopment of the prime Barlow Park Campus, situated at 180 Katherine Street, Sandton.
The joint venture property investment and development deal was signed this week. The next step is the rezoning of the property, which is expected to take at least a year.
The initial property transaction involves each party holding one-third of the landmark site currently housing Barloworld’s corporate offices. The investment value will eventually climb to well over R3billion as the total redevelopment of this sprawling corporate park is rolled out into a 130,000sqm vibrant multi-billion-Rand mixed-use precinct.
“The redevelopment of Barlow Park is part of our strategic focus to maximise the use of and unlock value in all our assets. This will not only contribute to the achievement of our bold ambition, but will be a legacy that will deliver value over the long term. The relocation of the Barloworld head office from Barlow Park is a symbolic major shift in our ethos and perspective of managing for value. Our Equipment and Logistics head offices will also relocate closer to their operations. This development is one of the pivotal steps in setting the tone for our growth going forward,” says Dominic Sewela, Chief Executive Officer of Barloworld Limited.
Leading South Africa property investor and developer Atterbury will develop the project for the joint venture and lead all aspects of the development. Atterbury will also lease the development and are the appointed asset managers of the completed property.
Louis van der Watt, Atterbury CEO, says: “The opportunity to develop this mixed-use commercial precinct at the gateway to South Africa’s financial capital of Sandton Central is hugely exciting. We look forward to creating a new chapter for this exceptional legacy asset by unleashing its extraordinary potential, which was first identified by the founding family of Barloworld. We are confident that this iconic South African company will continue to benefit richly from its foresight and new joint venture. We are also incredibly proud to make this unmatched investment with esteemed South African business African Rainbow Capital.”
Two of African Rainbow Capital’s founding principles are alignment and partnering with the best. With this project we are proud to partner with esteemed, experienced teams from Barloworld and Atterbury on this exciting, ground-breaking opportunity. It subscribes to our mandate of investing in property opportunities where value can be unlocked for all stakeholders, and the community at large”, says Johan van der Merwe, Co-Chief Executive Officer of African Rainbow Capital.
This trailblazing development will optimise the full potential of its unique site and coveted location in line with the very latest in world-class modern, efficient and quality multiuse developments.
The property enjoys a prime site, nestled between the M1 highway and the main road of Katherine Street. It has excellent access and superb visibility on both major arterials. This also positions it ideally to benefit Sandton’s new road upgrades – for private and public transport – focused directly around the property.
Subject to zoning, the development could include around 55,000sqm of offices, over 780 residential units, a roughly 10,000sqm community retail centre, as well as a hotel and a gym. It is being meticulously planned so each property use will enjoy peak functionality, access and visibility, with painstaking attention to detail ensuring it is designed for unparalleled quality.
The development will be phased, and will roll out in response to tenant and market demand. The entire project should take about 6 to 8 years to develop, after it obtains zoning approval.
The Barlow Park development project is ideally positioned for a positive impact on its immediate community, being located at a key connection point with the nearby Alexandra township to create local economic and job opportunities.