Described as a “raw concrete shell” by appraisers, a large portion of the Cape Town Stadium grounds could be repurposed for mass parking. Only an average of 27 events are hosted at the stadium every year, and over R50 million is lost annually due to low usage and high maintenance costs.
Already the stadium has 1000 internal parking bays, as well as 4113 square metres of commercial rentable space and 893 square metres of storage space. The city council estimates that it can make R60 from every square metre for retail space, R40 for office space and R20 for storage space, giving a rental income of between R2 million and R5 million in the first year, depending on construction costs. While the council would pay initially for installation, tenants would be responsible for general internal maintenance.
Basement parking is valued at R1000 per bay per month, and retail parking R500. The council hopes to lease out the internal spaces directly by public competition while the internal parking bays are leased out competitively to an operator who would lease them out to the market. The council is in the process of finding a suitable long-term tenant for the stadium, and meets this week to approve a public participation process that would last for three months and start in November. This will give proprietors the right to use, control or manage any municipal asset worth more than R10 million.
In a report to the mayoral committee last week, the council stated its intentions to commercialise the stadium district consistent with a business plan aimed at optimising the development opportunities and marketability of the stadium.
“The stadium is strategically located with good public transport access and it must be noted that the area lends itself to a range of urban opportunities, which must be explored,” said acting mayoral committee member for finance, Johan van der Merwe.
Source: IOL News