Earthmoving equipment and logistics multinational Barloworld has partnered with property development firm Atterbury and investment finance house African Rainbow Capital – as co-investors – to redevelop the Sandton-based Barlow Park Campus into a 130 000 m2 mixed-use precinct. The property is located next to Innesfree Park, on Katherine street, in Sandton.
According to Atterbury CEO Louis van der Watt, the joint venture property investment and development deal was signed this week. The next step is the rezoning of the property, which is expected to take place in a year.
The initial property transaction involves each party holding a third of the landmark site that currently houses Barloworld’s corporate offices. The investment value will eventually climb to well over R3-billion as the total redevelopment of this sprawling corporate park into a vibrant mixed-use precinct is carried out.
Subject to zoning, the development could include around 55 000 m2 of offices, over 780 residential units, a roughly 10 000 m2 community retail centre, as well as a hotel and a gym. It is being planned so each property use will enjoy peak functionality, access and visibility, with significant attention to detail ensuring it is designed for quality, says Van der Watt.
“This development will develop the potential of the coveted location in line with the latest world-class modern and efficient multiuse developments,” he confirms.
The development will be phased and rolled out in response to tenant and market demand. The entire project should take about six to eight years to develop, after it obtains zoning approval.
The Barlow Park development project is well positioned to deliver a positive impact on the immediate community, as it is located at a key connection point with the nearby Alexandra township and promises to create local economic and job opportunities.
“The redevelopment of Barlow Park is part of our strategic focus to maximise the use of, and unlock value in, all our assets. This will not only contribute to the achievement of our bold ambition, but will be a legacy that will deliver value over the long term,” says Barloworld CEO Dominic Sewela.
“The relocation of the Barloworld head office from Barlow Park is a symbolic major shift in our ethos and perspective of managing for value. Our equipment and logistics head offices will also relocate closer to their operations,” he says.
“The opportunity to develop this mixed-use commercial precinct at the gateway to South Africa’s financial capital of Sandton Central is exciting. We look forward to creating a new chapter for this legacy asset by unleashing its potential, which was first identified by the founding family of Barloworld.
“We are confident that the company will continue to benefit from it and the new joint venture,” says Van der Watt.
African Rainbow Capital co-CEO Johan van der Merwe said: “Two of African Rainbow Capital’s founding principles are alignment and partnering with the best. With this project we are proud to partner with experienced teams from Barloworld and Atterbury on this opportunity. It matches to our mandate of investing in property opportunities where value can be unlocked for all stakeholders, and the community at large.”
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