New Cape Town Museum Launch

Speech by Donald Grant, Minister of Transport and Public Works

• Minister of Cultural Affairs and Sport, Anroux Marais
• Head of the Department of Cultural Affairs and Sport, Brent Walters
• Head of the Department of Transport and Public Works, Jacqui Gooch
• Deputy-Director General of Provincial Public Works, Gavin Kode
• Acting Chief Director of Immovable Asset Management, Ronel Judin
• Chief Director of Cultural Affairs, Hannetjie Du Preez
• Ross Linstrom and representatives of Standard Bank
• Senior officials and representatives of the Department of Transport and Public Works
• Senior officials and representatives of the Department of Cultural Affairs and Sport
• Representatives of Heritage Western Cape
• Invited guests
• Ladies and gentlemen

Good morning, Goeie more, Mholweni.

It is an honour to mark the completion of the long-term lease of the Old Standard Bank Building in Adderley Street, Cape Town for the Cape Town Museum and for Western Cape Government office accommodation.

This project is testament to what can be achieved through partnerships between provincial government departments and private stakeholders in managing and improving the efficiency, effectiveness and sustainability of our property holdings.

The Department of Cultural Affairs and Sport (DCAS), together with the Department of Transport and Public Works, have been negotiating with Standard Bank since early in 2013 regarding the lease.

Standard Bank decommissioned the building as an operational banking facility some years ago, and then sought proposals from the public for the benevolent use of this 1880s heritage building. Numerous proposals were received and the DCAS proposal for the establishment of the Cape Town Museum was selected as the preferred option. Standard Bank did not want to sell the building at that stage, but wished to retain ownership while enabling it to be used for a social purpose without incurring ongoing expenses. The proposal was therefore for the Western Cape Government to conclude a long term lease (10 years plus an option for a further 10 years) for a nominal rental on a triple net basis. 

The building is well situated in the heart of the cultural district of the Cape Town city centre. It was initially constructed in the 1880s. Two extra floors were added and the dome and statue were replaced in 1922. It is situated in a high density commercial and cultural area on Adderley Street, and we know of no alternative comparable site. The proposed lease is to be a triple net lease at R100 per annum with the lessee responsible for rates and taxes, insurance, internal and external maintenance and all other operating expenses in addition to the costs ordinarily associated with occupation. The lease will allow the Western Cape Government to lease museum space of 2 000.9 m² and office accommodation space of 1 615.9 m². Standard Bank has undertaken to bring the lifts and the heating, ventilation and air conditioning (HVAC) into good working order at its own expense prior to commencement of the lease.

In turn, the Western Cape Government will pay:

• Nominal rental of R100 per year (recurrent).
• Operating costs (including the reimbursement of insurance and property rates to Standard Bank) (recurrent).
• Relocation expenses (once-off).
• Refurbishment expenses (once-off).
• Fire compliance maintenance (once-off and recurrent).
• HVAC maintenance (recurrent).
• Lift maintenance (recurrent).

Ladies and Gentlemen

In the light of recent budget cuts across all government, this is good news for the provincial government. By relocating DCAS staff to the Old Standard Bank Building, office space requirements will be reduced by 1 200 m². This is based on a norm of 15m² per staff member. The potential monthly rental saving should amount to approximately R123 120 or an annual saving of about R1 477 440.  If the calculation is based on only the 35 officials currently housed in Protea Assurance House, the potential annual saving should amount to about R646 380. It is clear that we are making progress in our aim to improve the efficiency, effectiveness and sustainability of our property holdings.

Clause 33 of the draft lease provides the Western Cape Government with a pre-emptive right to acquire the Building in the event that Standard Bank receives an offer from a third party to purchase the property at any time/s during the currency of the lease or any renewal period of the lease. Given the option to extend the lease term from 10 to 20 years, coupled with the above pre-emptive right, the Western Cape Government is secure in the premises for at least 20 years.

The Cape Town Museum and associated office space for Western Cape Government cultural affairs staff shows how the preservation of heritage and the promotion of heritage can be brought together to reduce operating costs, boost urban renewal in the city centre, and boost social inclusion, making us all better together.

Thank you.