The City of Cape Town has embarked on a central business district (CBD) rejuvenation drive, and has earmarked South Africa’s second-oldest public square, Greenmarket Square, for a multi-million rand makeover.

It is hoped that this investment from the public sector will act as a “catalyst for inner-city revival”, and spark further private sector investment. The City of Cape Town alone has budgeted about R2-million for the Greenmarket Square upgrade, which is set to start in June 2008, and completion is expected by June 2009.

Property developments in and around Greenmarket Square have already attracted attention in recent years, and Asian hotel group the Indian Hotels Company, Eurocape, and Vunani properties have already made significant investments in the area.

Upgrade plans for the almost 300-year old Square include the ‘pedestrianisation’ of the Square, the widening of the Shortmarket street sidewalk, upgrading of the ablution block, construction of a concert stage, reconfiguration of the informal trading areas, and heritage features such as a slave memorial, and an original water pump are also being considered.

There is also the possibility of linking the Square to the 2010 FIFA World Cup ‘fan mile’.

Eurocape and the Indian Hotels Company are investing R300-million in the development of the five-star Taj Palace hotel, which will form part of what will be called ‘Cathedral Precinct’, and will be linked to St, George’s Mall and Greenmarket Square.

Vunani Properties will launch a Jewellery Mall at Greenmarket Square, which will be aimed at tourists and local shoppers. “The mall will consist of a ‘one-stop shop’ of 30 jewellers, with local and international designs. It will house a mix of established retailers, and provide ‘an incubator’ for new jewellers,” said Vunani Properties director Rob Kane.

“The Square has played a significant role in the City’s history since the first trading ships berthed in Table Bay, and the City now has plans to resuscitate Greenmarket square into the cultural, social and business hub of Cape Town,” stated mayoral committee member for economic, social development and tourism councillor Simon Grindrod.

The City’s executive director for economic, social development and tourism Mansoor Mohamed explained that the initiative formed part of a broader initiative to regulate informal trading across the city. “Cleaner and safer trading areas will inevitably attract more tourists and investors. As part of the City’s plans, we will use informal trading as a springboard for emerging entrepreneurs to start their businesses with the aim of growing into the formal economy,” he added.

An estimated R30-billion worth of new private and public sector investments are planned for the Cape Town city centre over the next three to five years.

The latest Rode property survey indicated that rentals in the Cape Town CBD increased by 20% in the second quarter of 2007.