Standard Bank's new R1.6bn building in Rosebank on track

Standard Bank is building a new office development in Rosebank Johannesburg at a construction cost of R1.6bn, an initiative that the bank says will allow for consolidation of occupancies in leased premises in the greater Johannesburg area as well as for growth in staff numbers.

The building, which is strategically placed just a stone’s throw away from the Gautrain station in Rosebank, will house 5 600 Standard Bank employees. However, Standard Bank, which is Africa’s largest bank by market value, says it is committed to the Johannesburg central business district.

Financial services companies in the country have been spending billions of rands investing on bricks and mortar. Standard Bank’s peer, Absa, spent about R1.8bn in building its new headquarters in Johannesburg - a move it said highlighted its commitment to the city centre. Old Mutual Property (the property investment boutique of Old Mutual Investment Group South Africa) is planning a R3bn multi-storey mixed use office precinct comprising office and retail with basement and on-grade parking in Stella Road, Sandton,

“Standard Bank remains committed to the Johannesburg CBD. However, as the group has expanded Standard Bank has seen the need to establish various office complexes around Johannesburg to cater for this growth. One such project is the Standard Bank buildings in Constantia Kloof. The Constantia Kloof complex accommodates 3 000 Standard Bank employees,” spokesperson Ross Linstrom told Moneyweb.

“The Rosebank building which is currently being developed at a construction contract cost of about R1.6bn, will accommodate 5 600 Standard Bank employees. This complex is aimed at alleviating some of the stress placed on the bank’s current infrastructure. The additional space created in Rosebank will allow for consolidation of occupancies in leased premises in the greater Johannesburg area as well as for growth in staff numbers.  Standard Bank also leases several other properties in the Johannesburg CBD,” he added.

According to the website of construction firm WBHO, the construction of the Rosebank project is scheduled for completion in 2012. On its website WBHO has valued the project at R1.1bn, but it looks like the costs, as Standard Bank stipulates, have now reached R1.6bn.