Newgate, the latest affordable residential precinct in Johannesburg’s inner city, with rentals ranging from R1 750 for the smallest unit to R3 000 for the largest unit, was launched earlier this month, with the first of about 500 tenants already having moved in.

The eleven-storey, 25 000 m2 building is located between Jeppe and Bree streets, in Johannesburg’s central busi- ness district, opposite the Bree street taxi rank. It ori- ginally served as an office building and also housed a retail centre, which included a cinema complex.

Newgate, originally wholly owned by Standard Bank, was refurbished through an R80-million joint venture with affordable-housing company Afcho, which resulted in Standard Bank and Afcho each owning 50% of the building and being partners in the development.

“A few years ago, this building was derelict and run down. If we look at it today, it is a place that provides its resi- dents with dignity,” Standard Bank CEO Sim Tshabalala said at the launch.

He added that Standard Bank was confident that Newgate was going to prove itself as a major commercial success. “We expect to generate returns that will adequately reward each shareholder for the risks taken, but we are also proud that we will do so in a socially responsible way.”

Refurbishment of the building started at the beginning of 2012, with the building currently comprising a healthy mix of retail and residential space, Standard Bank head of real estate investments Lael Bethlehem said.

The residential component of the building is divided between eight residential floors in the north façade and six residential levels in the south façade, which collectively amount to 216 bachelor and one-bedroom rental units, most of which have expansive views over the city.

“The units are well designed and each unit boasts high-quality modern fittings, such as granite kitchen countertops, fitted cookers and built-in cupboards, as well as high-end sinks and taps. Every unit also comes with prefitted window blinds,” she said.

Each apartment is supplied with metered water and the hot-water supply is heated by economical, energy efficient heat pumps. Every unit has been fitted with prepaid electricity meters and tenants can plug into prefitted DStv aerials, log onto wireless Internet and use the private telephone in each unit.

“Low-energy ambient lights have been fitted in the apartments and common areas, and light sensors have been installed in the passages, which will help reduce the building’s costs. Energy efficient lifts have also been installed,” Bethlehem pointed out.

Further, she stated that Standard Bank and Afcho took security seriously, as the success of projects such as Newgate relied heavily on the ability to keep the tenants safe and prevent overcrowding.

“Tenants will be able to access their units through a guarded, biometric access area located on the first floor,” Bethlehem added.

Newgate also has a 7 500 m2 retail centre located on the lower levels, which includes a 2 200 m2 Cambridge Super- market, medical suites and a post office. The centre will soon also have a 1 700 m2 gym.

Speaking at the launch, Afcho CEO and COO Renney Plit pointed out that Johannesburg’s inner city was becoming a central hub for trade and residence in sub-Saharan Africa.

“Johannesburg has transformed itself from a transi- tional place of residence to a place of permanent resi- dence and that is what we are trying to provide.

“Newgate is about creating dignity for our emerging population. You have to give people a place where they can raise their families in a safe environment and where they can be proud of where they live,” Plit emphasised.

He added that the Newgate apart- ments were fully let in three months. “Even the flats that are not yet complete have already been let.”