A new R1.3 billion development in the Cape Town city centre, City Park, is the latest in a wave of mixed-use projects reshaping the city’s skyline and urban experience.
Cape Town’s inner city is a hive of construction activity, dominated by the construction of the City Park building, which will include a Mama Shelter hotel.
The development, by Ingenuity Property Investments and Kasada Capital Management, is the latest in a wave of mixed-use projects reshaping downtown Cape Town’s skyline and urban experience. The transformation of the former Christiaan Barnard Memorial Hospital will blend residential, retail, hospitality, and co-working elements under one roof — signalling a growing trend towards multifunctional urban precincts.
According to Grant Elliott, Chief Operating Officer of Thibault Investments and Deputy Chairperson of the Cape Town Central City Improvement District (CCID), this trend reflects a strategic response by developers to both the challenges and opportunities of the post-pandemic urban environment.
“Mixed-use no longer just means having a few different functions in a building,” says Elliott. “In Cape Town today, it means a true integration of residential, commercial, and retail uses in a single development or precinct.”
APPEAL OF DIVERSIFICATION
Elliott, who oversaw the R500-million successful conversion of One Thibault from a substantially vacant office tower into a thriving mixed-use development, says the appeal for investors lies in diversification. “The property industry is very cyclical. With a mixed-use asset, you protect yourself from market fluctuations — if office demand drops, your residential, hospitality or retail components can still perform and vice versa.”
One Thibault, which was only 50 % occupied when acquired, was transformed in phases starting in 2021. Its conversion into a mixed-use development has valuable lessons for other developers looking to follow suit. “We had a clear plan: we built and sold apartments from floors 15 to 20 and retained those on floors 21 to 28 for our own offering. Office tenants were consolidated on the lower floors. It wasn’t easy — we invested over R200 million in conversion costs alone — but we’ve seen a strong return in terms of asset value and occupancy.”
REIMAGINING BUILDINGS
One Thibault’s success is not unique. Across the Cape Town CBD, former single-purpose buildings are being reimagined to support a mix of living, working, and leisure spaces — a trend that, according to Elliott, gained momentum during the pandemic due to reduced demand for office space.
The latest research by the CCID, presented in the second half of 2024, in its State of Cape Town Central City Report 2023 – A year in review, highlights this shift, noting that seven mixed-use developments—valued at a combined R1.75 billion—featured in the CBD’s 2023 development pipeline.
One Thibault was one of two mixed-use property developments that were completed in 2023, with the other being the stand-out development of The Barracks (R150 million). The latter, an iconic 18th-century heritage building restored by Gabriël Fagan Architects, now features over 60 apartments (studio, one- and two-bedroom), along with offices, a pilates studio, physiotherapy, a rooftop wellness centre, and ground-floor retail. Co-owner and co-developer Casey Augoustides says building a resilient community is key. “We aim to find a mix of tenancies that benefit and complement each other symbiotically, as well as integrating well with the surrounding neighbouring properties. This builds a resilient, supportive community that can prosper and survive even through tough times.”
Augoustides continues: “We collaborate and communicate with the owners and tenants of surrounding properties to continue to strengthen our precinct and are very grateful for the support and guidance we have received from the CCID and City of Cape Town over the years.”
In early 2024, another mixed-use development, The Rubik – a striking 27-storey glass-fronted skyscraper by Abland and dhk Architects – was completed. Resembling a Rubik’s cube, the R600-million development includes pet-friendly residential units, over 5,000 m² of commercial space, ground and mezzanine-level retail, and P-grade office space from floors 10 to 17.
Now, two major developments are currently under construction. Mama Shelter Africa, a lifestyle hospitality brand by Ennismore, will offer 127 guestrooms, 68 branded residences (studios to multi-bedroom units), meeting and co-working spaces, a rooftop restaurant and pool deck, and ‘Mama Play’—an entertainment zone featuring bowling, karaoke, and event spaces. Also underway is Spindle, a slender 16-storey, 60-metre R120-million tower designed by Robert Silke & Partners, situated at the corner of Plein and Spin streets in Church Square. Inspired by the area’s 19th-century silk-spinning history, construction began in late 2023, with completion expected in the first half of 2025.
THE 15-MINUTE TREND
“The concept of the 15-minute city is central to the growing trend in mixed-use development,” says Elliott. “It’s about making sure that, if you live in the city, everything you need — work, education, medical care, shopping — is accessible within a 15-minute walk or bike ride.”
Cape Town as a city is also making substantial infrastructure investment, he points out, and pulling every lever it can to stimulate economic growth, including tourism.
Elliott acknowledges the challenges: conversions require significant investment, and success hinges on getting the mix right. “You need to design for multiple user types and create spaces that complement one another, and not every building is suitable for conversion. It takes vision, flexibility, and strong partnerships.”
One of those key partnerships, says Elliott, has been with the CCID and the City of Cape Town. “There’s been a tremendous amount of work done by the CCID and the City when it comes to law enforcement, safety, cleanliness, and urban management. That’s been crucial in bolstering the CBD’s appeal — not only for investors but also for tourists and residents.”
Elliott believes that mixed-use is a long-term shift in urban development in the Cape Town CBD.
“We’ll continue to see older buildings repurposed for new and upgraded uses, especially as office demand continues to rebound post-COVID-19. The pandemic fast-tracked the conversion of underutilised office stock, but now we’re seeing demand and rentals climb again. It’s changing the supply-demand dynamics and opening new possibilities,” concludes Elliott.
IMAGES: CCID, The Rubik
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