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Jul 29, 2008:
The commencement of the development of phase two of Nedbank's Head Office building in Sandton has been revised to August 2008.
The revised date has been announced as a result of changes to the proposed plans announced earlier this year. Nedbank confirmed the changes to the development from a mixed-use development to an office building, incorporating a small retail element
"Market conditions, including a slowdown in residential property sales and dramatic increases in development costs, necessitated a revision of our original plans. What was originally earmarked as residential and commercial property will now be limited to office space only with the inclusion of a Nedbank branch on Maude street," says Ken Reynolds, Nedbank Corporate Property Finance's national property finance specialist.
Nedbank, which currently occupies 19,000sq m of rental office space in Sandton, will occupy the additional space created through the development. It is estimated that Nedbank will require an additional 26,000sq m of office space by the end of 2009.
"The benefits that will flow from the change in plans include greatly decreased building costs, a reduction in traffic congestion in Sandton and the freeing up of much needed rental space in Sandton," says Reynolds.
According to a recent SAPOA Office Vacancy Survey the number demand for office space in Sandton has increased dramatically with vacancy levels of A+, A and B category properties dropping to 0, 2.50 and 3.40% respectively in the first quarter of 2008.
With construction planned to start in August 2008, the offices are expected to be complete in November 2009 with occupation in the first quarter of 2010. The project is to be designed in terms of "best practice" for green buildings with the main emphasis being on efficient energy and water usage.
For more information contact Ken Reynolds on 082 900 4244 or send an email.
