Since the City of Cape Town has epically failed to convince the Western Province Rugby Union to move from their historical home in Newlands to the newer Cape Town Stadium, they have had to come up with another way for the building to create income.

Seeing as the council loses more that R50 million a year due to low usage and high maintenance costs, I guess they need to think of some solution, and this is what they plan to do:

For 10 years, the city council plans to lease spaces and parking within the precinct. The stadium has around 1 000 internal parking bays, and internal spaces of around 5 006 square metres, which includes:

• 4113 square metres of commercial rentable space
• 893 square metres of storage space.

Here’s what iol had to say:

A city council valuation report estimates the council could earn a rental income of between R2 million and R5 million in the first year, depending on installation and construction costs to transform the space, which valuers have described as a “raw concrete shell”.

The council would take responsibility for all installation costs, while the lessee would be responsible for all general internal maintenance.

The council’s valuation department estimates the internal spaces can draw income of about R60 per square metre per month for the retail space excluding value added tax, R40 per square metre for office space and about R20 per square metre for storage space.

The parking has been valued at R1 000 per bay per month for basement parking, and R500 per bay for retail parking.

To be fair, parking that side of the world is a nightmare, but so is getting there.

Next?

[source:iol]