THE high demand for hotel accommodation at Century City has prompted the launch of Manhattan Suites, a professionally operated rental pool of self-catering apartments providing interesting opportunities for investors.
Greg Deans, a director of the Rabie Property Group which is developing the Manhattan tower block on a prime site overlooking the Grand Canal opposite Canal Walk, says is was envisaged that the boutique Manhattan Suites hotel will be launched with at least 30 units.
“Century City currently has three hotels offering a total of 236 rooms catering for a wide range of the market with more hotels planned. However, our research has highlighted a significant need for short and medium term rental apartments for the corporate market in more homely but cost efficient accommodation at Century City as well as the need for a greater choice of accommodation for families and larger groups. Manhattan Suites will address this demand.”
He says about 15 existing owners have already committed to putting their apartments into the rental pool and they are now ready to release the last 15 of the 82 apartments in Manhattan to investors wishing to participate in the professionally operated rental pool which offers potentially higher returns in the medium term than what is generally achievable from residential rentals.
Deans says the rental pool will provide investors with a minimum 6% return on their investment, guaranteed for the first two years, as well as enabling them to enjoy longer term capital appreciation without having the hassle of administering a buy-to-let investment. Investors will also be entitled to use their apartments for 28 days a year for their personal use.
The rental pool apartments will all be air-conditioned and will be furnished to a high specification. Participating investors will have to commit their apartment to the rental pool for a five-year period, he says.
Deans stresses that Manhattan Suites is not a fractional ownership product but rather provides investors with outright sectional title ownership.
The hotel pool will be managed by Rabie Property Administrators and operated by Platinum Places which has extensive experience in running hotel rental pools in the Cape Town CBD.
Jacqui Boyd, MD of Platinum Places, says they believe Century City generally and the Manhattan product in particular would be successful.
“Its central location at the heart of the greater Cape Town metropole provides easy access to all the region’s major tourist attractions which will make it attractive to leisure travellers. In addition the fact that it is positioned in the midst of the Western Cape’s fastest growing business node which will eventually boast 600 000 square metres of offices will also make it exceptionally appealing for business travellers,” she says.
Boyd says a dedicated reception area will be created for Manhattan Suites in the main foyer of the building with a spa and breakfast facility being provided on the roof terrace which will enjoy views of Table Bay and Table Mountain and which will double as a terrace bar for residents and hotel guests in the evening.
Finance packages for approved investors are available. Apartments, which all include a parking bay with some also boasting storerooms, are available for purchase from R1 125 000 for studio apartments, from R1 520 000 for one bedroom units and from R1 910 000 for two bedroom units.
She says they anticipate Manhattan Suites will be operative from December once construction of the block has been completed.
