Intersite Asset Investments, the property and investment subsidiary of the Passenger Rail Agency of South Africa (PRASA), has awarded six development opportunities in the Western Cape to private-sector partners. Together, the projects represent approximately R3.6 billion in proposed investment. They are expected to deliver 790 residential apartments and 4,466 student accommodation beds.

The sites are located in Eerste River, Somerset West, Stellenbosch and Kalk Bay/Muizenberg, and at Cape Town Station. The appointed development partners are Go-Group, Kromkrans JV, Growthpoint and Eris Property Group. The awards reflect sustained investor appetite for residential and student accommodation in the province, and for well-located land within the Intersite portfolio.

“These awards are an important step in Intersite’s national strategy to transform strategically located, rail-linked assets into investable, mixed-use precincts,” said Annette Lindeque, Chief Executive Officer of Intersite Asset Investments. “By applying this model across our national portfolio, we aim to attract private-sector capital and capability, make better use of underutilised assets and build sustainable, diversified revenue. In doing so, we seek to reinforce rail as a catalyst for connected social and economic hubs, and to support long-term value creation and inclusive economic activity.”

A partnership model built on location

Intersite’s portfolio includes land and property linked to established transport infrastructure and urban nodes. Its role is to identify viable opportunities, take them to market and partner with experienced developers who bring capital, specialist expertise, innovation and the capability to deliver.

“Our model is straightforward. Intersite brings strategically located property to the partnership and facilitates the opportunity, while our partners contribute development expertise, capital and execution capability,” said Kgosi Mabotja, Chief Investment Officer of Intersite Asset Investments.

“We want to work with developers and enable them to do what they do best.”

The Western Cape awards apply this model at scale. They direct proposed private-sector investment into new homes and student accommodation on land within the Intersite portfolio.

A disciplined approach to co-investment

Intersite intends to assess selected projects within the awarded portfolio as potential co-investment opportunities. Any co-investment would be considered case by case, evaluated against Intersite’s investment criteria and subject to the required governance and approval processes. Where the investment case is compelling, Intersite may deploy its own capital alongside its partners, while the appointed developers retain responsibility for delivery.

This approach would allow Intersite to share more directly in the long-term value created on its land, without duplicating the specialist capabilities of the private sector.

“Where an opportunity presents a compelling investment case, we want the ability to consider investing alongside our partners,” said Mabotja. “That allows us to combine our property and investment capital with private-sector development expertise, and to participate in the value created.”

Part of a national development pipeline

The Western Cape programme forms part of a broader pipeline through which Intersite intends to bring further opportunities to market across its national portfolio, and to deepen its engagement with South Africa’s property and investment sector. To support the scale and complexity of this work, Intersite is strengthening its investment, development, asset management, finance and transaction capabilities.

“The Western Cape programme is not an isolated initiative. We have opportunities across our national portfolio and intend to bring more of them to market,” said Lindeque. “Our invitation to developers, investors and funders is simple: Intersite is open for business and ready to partner.”