Cape Town prepares to extend Convention Centre

The City of Cape Town has made the first land purchases for its Cape Town International Convention Centre (CTICC) expansion, a move that will change the face of the Foreshore.

The city has already purchased property from media giant Naspers to accommodate the expansion of its convention centre.

On October 27, 2010 and on March 3 this year the council approved the proposed expansion of the CTICC.

One of the resolutions taken by the council was that the property management department negotiated the purchase of a portion of Erf 247, Roggebaai, valued at R13.9 million, according to the report tabled at this week's special mayoral committee meeting.

The overall plan would add some 10 000m2 to the centre.

The CTICC is to expand eastwards, taking over an adjacent parking area, owned by the city and two private companies. The CTICC said the development would create construction and development opportunities in the area of more than R4.5bn.

Deputy mayor and head of finance Ian Neilson said the purchase of the property from Naspers had just been concluded.

"We've just purchased the one from Naspers which is the key one in the middle. It's three pieces and Naspers owned the middle one," said Neilson.

He couldn't say how much the city paid for the property "off hand".

"But we are ready to proceed as the city and we're working together with the province. Our plan is to have it completed in 2015," he said.

He said a parcel from Naspers was vacant and a section of the CTICC would be moved to the spot which will have conference facilities, an office block and a parking lot.

CTICC spokeswoman Zeenat Parker said the estimated cost of the CTICC expansion was R700m. The mayco report said following the approval by council for the expansion of the CTICC, further negotiations were entered into with Lakeside City Trading 55 (Pty) Ltd for the purchase of a portion of Erf 247 in Roggebaai.

"Lakeside has indicated its willingness to sell the portion of Erf 247, Roggebaai, to the city, subject to the city granting a lease to Lakeside for the development of parking on Salazar Square. Salazar Square is located between the Naspers, Media City, Chevron and proposed CTICC2 buildings," read the report.

Neilson said the city was now dealing with Salazar Square, which would be concluded soon.

"It is recommended that the council authorises a public participation process to advertise a transaction for the granting of rights to sell, control or manage portions of city-owned property (Salazar Square) to Lakeside or its nominees," read the report.

Earlier this year the CTICC said it was expecting "bumper" years as one of the city's biggest meetings and events venues and planned to expand despite the global recession. CTICC management said the centre had generated over R14m last year.

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