A R6-million redevelopment project in Diepkloof Soweto, that will bring about the Diepkloof Extension 3 Neighbourhood Centre, has been initiated by the City of Joburg Property Company (JPC).

The project was kicked off with the awarding of Development Reservation Agreements to three property developers. The agreements will see the development of a 15 000 m2 shopping centre, a 60 unit residential complex and a home for Hospice Soweto.

The Diepkloof Neighbourhood Centre will be occupying an eight hectare block between Immink Drive, Jack Klipin Road and Eben Cuyler Drive in Diekloof Ext 3. It will be built on land that was formerly occupied by the Mandelaville informal settlement until the settlement’s relocation to new subsidy houses in Braam Fisherville.

Until development starts, the healthcare clinic and community hall currently run by the Johannesburg municipality will continue to operate from the site. These existing facilities, combined with the three new developments will soon offer residents access to a wide variety of social and economic opportunities.

The awarding of the development agreements follows the evaluation of proposals submitted to JPC in response to a proposal call in May this year. Leila McKenna, MD of Joburg Property Company is pleased with the interest shown by developers in the Soweto site.

"The fact that seven viable proposals for the development of the neighbourhood shopping centre were received from well established developers clearly indicates a growing commitment to economic development in Soweto," said McKenna.

The developers have until February 2005 to finalise their proposals, obtain necessary approvals and resolve implementation issues. Thereafter JPC will consider their final proposals and award final agreements. It is expected that development will start in March 2005 and be completed in early 2006.

Rights for the development of the Diepkloof Plaza Shopping Centre on a 4,2 ha site were awarded to Grendelton Investments, a joint venture between McCormick Property Development (MPD) and MCI Properties. MCI Properties is a wholly-owned subsidiary of Millennium Consolidated Investments (MCI), a company chaired by businessman Cyril Ramaphosa.

The 15 000 m2 Diepkloof Plaza will see the development of two main anchors, one of which will be a 2500 m2 Blue-Line, Shoprite or Checkers. Provision has also reportedly been made for sufficient parking facilities.

"In keeping with its strategic location, the shopping centre will be up-market in both design and finish," the JPC said in a statement.

The design allows for two "island blocks" comprising banks and smaller shops, around which the rest of the centre is wrapped. The centre will be a pedestrian-friendly, landscaped and treed mall, containing a food-court, as well as a lifestyle/entertainment/leisure component.

MCI Properties is primarily involved in asset management and development. The company recently acquired a majority stake of Property Fund Managers, the asset manager of the Capital Property Fund. This development marks their first foray into the development arena, with a particular emphasis on state-owned land where public-private partnerships can be pursued.

MPD has considerable experience in the development of shopping centres in the former homelands and other under-developed areas. To date, MPD has developed over 30 shopping centres around the country, and this joint venture with MCI Properties marks the first joint project for the two companies.

A development agreement has been awarded to Sirad Properties for the development of the 8 000 m2 Diepkloof Gardens Residential Complex.

Sirad Properties, a wholly owned BEE closed corporation, plans to develop approximately 60 simplex units on the site at a cost of nearly R17-million. The development aims to introduce the townhouse concept to residents of Soweto.

"The 90 m2 units will offer high quality finishes and will add value to the entire precinct and surrounding areas," JPC said.

JPC has also awarded a development agreement to Hospice Association of the Witwatersrand for the development of an R8-million Soweto Hospice on the third section of the site. The 7900 m2 development will allow Hospice to grow and consolidate its services to the greater Soweto community. Hospice Soweto currently operates mainly out of the Mofolo Clinic facility.

>From Mofolo Clinic, Hospice Soweto provides palliative care for hundreds of patients and much needed support for their families. The facility has a nine bed in-patient ward, a centre handling some 40 trainees per session and a home care visiting team consisting of five professional nurses and 48 community care workers visiting some 500 home bound patients each month. Added to this is, around 45 out patients transported to the clinic on a daily basis for medical intervention and social counselling.

The Diepkloof development will provide the opportunity to allow growth of 300% for Hospice relief services.