Amazon investment a confidence boost

The River Club development will be anchored by Amazon taking up an estimated 150 000m2 of Gross Building Area.  The initial Investment is circa R4Bn with in excess of 5000 construction jobs being created over a 5 year build cycle.  This should trigger an inflow of allied industries seeking to rub shoulders and do business with one of the worlds largest companies. The implication for commericial property being taken up in this emerging node is very positive, and close in distribution hubs/centres should also benefit.  Cap rates should improve over the medium term.  An hotel and residential property is in the mix, creating a commericial hive.

Amazon is not just a behemoth of an online retail business, it has a strong technology focus and will bring the middle and back end of its business model to Cape Town via its new campus.  This may also create demand for technology skills, call centres and the like.