Afrirent Holdings, the investment group founded by South African businessman Senzo Tsabedze and his wife, Thenjiwe Tsabedze, plans to invest R2.5 billion ($150.2 million) in a 35-storey mixed-use tower next to the Cape Town International Convention Centre, nearly doubling its initial budget as it expands into hospitality and property development.

The project, named ThirtyFour18, will combine a 155-room hotel, 94 private apartments, seven penthouses, office space and retail outlets in Cape Town’s Foreshore district. Plans also include a rooftop sky bar and swimming pool, positioning the development to serve business travelers, conference delegates, tourists and residents seeking accommodation in the city center.

Investment nearly doubles

Afrirent secured a long-term lease on the site from the City of Cape Town in 2024, initially outlining an investment of between R1 billion ($60 million) and R1.3 billion ($78.1 million). The latest budget of R2.5 billion ($150.2 million) marks a substantial increase, reflecting the expanded development plans pursued by Afrirent and co-developer Lance Chalwin-Milton, a co-founder and former managing director of High Street Auctions.

Tsabedze said Cape Town remained an attractive investment destination because of its economic activity and investment environment. The project is expected to create about 2,500 jobs during construction and 400 permanent positions once completed, adding to employment in the city’s property, hospitality and services industries.

The development comes as Cape Town grapples with demand for residential accommodation across income groups, while its position between the Atlantic Ocean and Table Mountain constrains the supply of developable land. The project also targets demand for office space in the Foreshore, a commercial district anchored by the convention center and major tourism attractions.

Hotel, offices and dining

ThirtyFour18 will include four floors of office space, alongside hotel facilities designed to cater to business travelers and conference attendees. The hotel will feature a first-floor coworking area with direct access to the convention center, giving delegates a place to work between sessions during major events, including the annual Mining Indaba.

The second and third floors are earmarked for an innovation hub that the developers hope to lease to the convention center. The space could showcase emerging technologies and connect with the venue during conferences, allowing exhibitors to demonstrate products and innovations to business audiences.

Chalwin-Milton said the developers also hope to attract a Michelin-starred restaurant to the rooftop, working with a group seeking to bring Michelin-starred chefs to Cape Town. A second restaurant on the sixth floor will serve hotel guests and the public, broadening the tower’s appeal beyond overnight visitors.

City backs private investment

The serviced apartments are expected to offer views of the V&A Waterfront, the harbor and Table Mountain, placing residents close to Cape Town’s commercial, tourism and events district. The combination of residential units, hotel rooms, restaurants and offices is designed to generate activity across multiple property segments rather than rely on a single source of demand.

James Vos, Cape Town’s mayoral committee member for economic growth, said the city wanted to make it easier for private investors to establish projects. He said local government should do everything possible to help investments proceed, describing the development as evidence of the city’s openness to business.

The development team said it had appointed Cape Town-based professionals to keep more of the project’s economic benefits within the local economy. Construction is expected to begin in April 2027, following a planned sales launch in January.

Afrirent expands into property

Founded in 2003 by Senzo and Thenjiwe Tsabedze, Afrirent has expanded from a truck-based operation into a diversified group spanning mobility, logistics, environmental services, manufacturing and hospitality. The company operates through Afrirent Mobility, Afrirent Enviro and Indalo Hotels and Leisure and is 100% Black-owned.

The group’s hospitality expansion gained traction in 2021 with the launch of Indalo Hotels & Leisure. Its activities have included hotel management contracts, the lease of Cape Town’s Fountains Hotel and serviced apartments under the WINK brand.

Senzo Tsabedze remains executive chairman, while Thenjiwe Tsabedze becomes chief executive officer in 2024. The ThirtyFour18 development represents a larger bet on hospitality and property, placing Afrirent alongside investors seeking to capitalize on Cape Town’s conference business, tourism demand and limited urban development space.