Construction has begun on an R850-million residential redevelopment at Menlyn Office Park in Pretoria, Gauteng, which will add 1 200 apartments to the Menlyn node through a new partnership between Pareto and Divercity Property Group.

The two companies broke ground after Pareto concluded a competitive request for proposals process that selected Divercity as its residential development partner.

The project is located next to the Menlyn Park Shopping Centre.

Pareto confirmed that the redevelopment will convert existing three- and four-storey office buildings into 460 residential apartments, while a further 740 apartments will be delivered across four new buildings of up to ten storeys. The companies said the conversions and new-build construction will take place at the same time, with the first units expected to be completed in 2027.

“This development signals our commitment to shaping the next chapter of the Menlyn precinct. By introducing high-quality residential options next to one of South Africa’s premier malls, we are creating a vibrant, connected node that reflects how people increasingly want to live, work and spend their time,” Pareto CEO Malose Kekana said.

“We are thrilled to begin this new relationship with Pareto with such a meaningful and exciting project,” Divercity CEO Carel Kleynhans added.

According to the two companies, the Menlyn node has expanded steadily in recent years owing to the performance of Menlyn Park Shopping Centre and the nearby Menlyn Maine development, which has increased demand for centrally located mixed-use housing.

The residential precinct will be situated within the green, tree-rich environment of the existing park and will have access to neighbourhood facilities within walking distance. These include more than 400 stores, restaurants and services at Menlyn Park Shopping Centre.

Pareto and Divercity will co-design the development and will each hold a 50% ownership stake once completed. Divercity will provide residential property management services through its subsidiary Ithemba Property Management.