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2006 ANNUAL REPORT

The Cape Town Partnership at a Glance 11

Chairman’s Review 22--33 Chief Executive’s Report 44--1177

Annual Financial Statements 1188--3344 Notice of Seventh

Annual General Meeting 3355 Form of Proxy 3366

CONTENTS

Page 1

MISSION STATEMENT

The Cape Town Central City Partnership was founded in July 1999 by the City of Cape Town, theSouth African Property Owners’ Association (SAPOA), the Cape Town Regional Chamber ofCommerce & Industry, and other stakeholders to develop, manage and promote the Cape TownCentral City as a place for all and a leading centre for commercial, retail, residential, cultural,tourism, education, entertainment and leisure activities.

VISION

An inclusive, productive and diverse City Centre that retains its historic character and reflects a common identity for all the people of Cape Town.

MANDATE AND CORE FUNCTIONS

The Cape Town Partnership, in partnership with the City of Cape Town, seeks to:

• Broaden access to the benefits and opportunities in the Central City for all the people of Cape Town. • Consolidate the Central City as the productive heart of the Cape Town metropolitan region. • Mobilise the public and private sectors and other stakeholders around common development

objectives. • Coordinate and facilitate multi-dimensional development programmes. • Guide decision-making and direct resources into solving the economic and social challenges

facing the Central City. • Contribute to the overall development of the City of Cape Town.

The Partnership targets members of the Cape Town public, particularly those who work, shop, visit,and reside in the Central City. The Partnership also targets visitors and tourists to the Central City, inconjunction with Cape Town Routes Unlimited (CTRU) and Cape Town Tourism (CTT).

Within the private sector, the organisation specialises in working with commercial property owners,investors, developers, financiers, and managers, as well as corporate business, retailers, smallbusinesses, and informal traders.

The revitalisation of the Central City is increasingly evidentwith many recently upgraded properties already addingtheir presence, and newer projects abuzz with hard-hattedcontractors supervising the finishing touches. The changesalready in place, and the knowledge that many more are inthe pipeline, is certainly encouraging and in many waystestament to the impact made by the CCID and the CapeTown Partnership. It is clear that the message is out there thatCape Town’s Central City is a model of what public-privatepartnerships can achieve to turn the fortunes of a CentralBusiness District around, and in so doing, making it a place ofpositive change and growth.

The build-up period to the staging of the 2010 Soccer WorldCup will provide opportunities to ‘up Cape Town’s game’,and the Cape Town Partnership will in the coming year beplaying a key role in ensuring that the Central City is directlyinvolved in all 2010 planning activities.

After seven years of successful delivery to both the publicand private sectors, the Cape Town Partnership hasbroadened its strategic objectives and range of activitiesaccording to the following themes:

• Access and Mobility – promoting greater access to theCentral City through better public transport for allcommunities in Cape Town.

• A Caring City – addressing the needs of the poor and thehomeless in the Central City through social developmentprogrammes.

• Creative Cape Town – the Central City is home to over 800creative and cultural enterprises, and Creative Cape Townaims to use culture to build an inclusive civic identity andgrow the economy.

• Investment and Development Facilitation – buildingpartnerships between investors, property developers, andstatutory planning authorities.

• Living in Town – promoting residential densification andmore affordable housing through focused co-operationbetween property developers, municipal planningauthorities, and social housing companies.

• Quality Urban Management – maintaining high qualityservices for the users of Cape Town, predominantly throughthe mechanism of City Improvement Districts andmanaged kerbside parking.

CHAIRMAN’S REVIEW

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This review is the seventh of the Cape Town Partnership in operation. We are proud

of what we have been able to achieve, together with the City of Cape Town and

other stakeholders, in regenerating Cape Town’s Central City and find its new levels

of energy exhilarating.

• Church Square Phase One upgrade completed

• Commencement of Grand Parade urban renewalprocess

• Implementation of Creative Cape Town Programme

• Launch of Hoerikwaggo Walking Trail

• Formation of Cape Town Business Areas Network

• Completion of 18 building upgrades

• 1 302 homeless adults accommodated, and 246 homeless children and youth successfully placed

• Commencement of the Cape Town StationPrecinct Revitalisation process

• Distribution of a new monthly electronic newsletter –Siyahluma – to approximately 2 000 stakeholders

HIGHLIGHTS OF THE YEAR

During the year under review, the Partnership has developednew mechanisms to give effect to its strategic objectives:

• Partnerships in Action – working with the private, public,and community sectors to encourage more events andpeople in the Central City.

• Walking Tours – raising awareness of developments in theCentral City by taking interested parties on walking tours ofthe area to demonstrate regeneration and improvement in action.

My grateful thanks go to everyone who has, and continues tocontribute to the Cape Town Partnership’s success. Withoutyour input in the form of time and energy this partnershipwould cease to exist.

A partnership is only as strong as its partners and I am mostappreciative of our solid working relationship with the officialsand Councillors of the City of Cape Town and with theWestern Cape Provincial Government, Intersite, the SouthAfrican Rail Commuter Corporation (SARCC), and otherpublic agencies.

On a personal level, I am most grateful to our Board for theirexpertise, energy, unwavering dedication, encouragement,and hard work. We have met virtually every month for sevenyears, which demonstrates an enormous commitment.Thanks to you, today’s Cape Town Central City is a world classexample of urban regeneration in progress.

I would like to use this report as an opportunity toacknowledge and welcome our new City of Cape TownMayor, Helen Zille, and to voice appreciation of the positiveimpact she has already made on civic affairs in the city.Mayor Zille has announced the appointment of Councillor

Anthea Serritslev and City Manager Achmat Ebrahim torepresent the City of Cape Town on the board of the CapeTown Partnership; a warm welcome to both of them.

A most valuable addition to the Board is Dirk Elzinga, CEO of the Cape Town International Convention Centre –‘Feestelijk inhalen Dirk’.

The private sector continues to play a key role in the work of thePartnership. Denis Skeate and Colin Boyes, both from the CapeChamber, and who are stepping down from the Board, haveprovided invaluable support over the past six years.

Building owners, developers, retailers, hotels, and corporatebusinesses are even more actively involved than ever before.Cape Town can be proud of how the public and privatesectors have joined forces to make a difference.

During his three-year tenure as Chief Executive, AndrewBoraine’s vision and dedication has seen the Cape TownPartnership build on years of delivery to both the public andprivate sectors and then widen the focus to include attendingto vital socio-economic issues.

My personal congratulations go to Andrew on hisappointment during the year to the Board of theDevelopment Bank of Southern Africa.

Finally, to the dynamic team at the Cape Town Partnership,my sincere thanks for your dedication and commitment.

SA JOHNSON Chairman

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Cape Town Partnership staff, Strand Street Bridge.

CHIEF EXECUTIVE’S REPORT

This is the Cape Town Partnership’s seventh annual report. The period underreview is the second year since the Partnership’s activities were broadened toincorporate pressing socio-economic issues in addition to the ongoing delivery tothe public and private sectors of basic urban management functions anddevelopment opportunities.

Military aircraft fly over the Iziko Slave Lodge in the Central City tomark the opening of Parliament in February this year.

The challenges facing homeless children, youth and adultshave been given much attention in collaboration with otherCentral City stakeholders. The period under review has alsoseen a strategic and focused look at positioning andpromoting the Cape Town Central City as a creative/culturalhub. The concept has received enthusiastic support fromprovincial and local government, and enjoys theparticipation of a broad spectrum of cultural workers.

The Partnership, together with the City of Cape Town, has alsobeen centrally involved with conceptualising and launchingthe Cape Town Business Areas Network. This Network willprovide a forum for knowledge-sharing and informationexchange for all bodies involved with the management,promotion, and development of commercial, industrial, andmixed-use business areas across the Cape Metro Region.

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The Cape Town Partnership recognises theneeds of the poor and homeless within theCentral City and has initiated a socialdevelopment programme via the CityImprovement Districts, and in conjunction withvarious non-governmental organisations.

Together with the Central CID, we are working closely with theCity of Cape Town, contracted service providers, NGOs, andvarious other stakeholders to deal with issues such as povertyalleviation, unemployment and homelessness on the CentralCity’s streets. During the year under review the followingsuccesses have been achieved (statistics supplied by theCCID and The Haven Night Shelter, District Six):

During the year under review, in the Cape Town CommunityCourt - a judicial programme that channels minor offenders intolife-skills training programmes - 3 782 cases were finalised withverdicts and 1 841 people were registered with the diversionprogramme. In total, 8 285 first appearances were registered.

Together with City Mission and the Multi Service Centre in Salt River, the Central CID has successfully placed 246 streetchildren and youth.

Number of homeless residents accommodated for the year 1 302Number of residents who have found alternative accommodation 54Number of residents who now have private accommodation 13Number of residents who have been referred to other shelters 40Number of residents referred to second phase accommodation 04Number of residents reunited with families 81Number of residents referred to homes for the aged 03Number of residents referred for inpatient rehabilitation treatment 01Number of residents on medication (administered by supervisors) 77Identity document applications submitted and received 34Applications submitted for disability grants 63

A CARING CITY – SOCIAL DEVELOPMENT

STRATEGIC OBJECTIVES

Children from the Clarke Estate community on the Cape Flats participatein the ‘Let’s Educate’ school holiday programme which was hosted bythe CCID’s Social Development Division.

Archbishop Desmond Tutu shares a humorous moment with senior citizensat the High Tea held on Greenmarket Square on Grandparents’ Day.

Elvira Rhodes is a divorced mother of three. After enduring much hardship,and having her children taken away from her and placed into foster carebecause she was unable to care for them, Elvira’s life started to take a positiveturn when she was referred to the District Six Haven by the Department ofHealth, and thereafter to the Carpenter’s Haven in Roeland Street for secondphase treatment. Elvira is now permanently employed by the Central CID’ssecurity service provider, G4S, as a Control Room Operator. Elvira now lives inGoodwood and her children have since been reunited with her.

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CREATIVE CAPE TOWN CREATIVE CAPE TOWN

The Central City is home to over 800 creative and

cultural enterprises, including advertising,

architecture, art and antiques, crafts, design, fashion,

festivals, film and video, food, media, music and

theatre, museums, performing arts, publishing,

software development, TV and radio.

The Central City is home to over 800 creative and

cultural enterprises, including advertising,

architecture, art and antiques, crafts, design, fashion,

festivals, film and video, food, media, music and

theatre, museums, performing arts, publishing,

software development, TV and radio.

The Creative Cape Town concept has received enthusiasticendorsement from Western Cape Premier, Ebrahim Rasool, andthe City of Cape Town. Provincial Government has agreed tocontribute R500 000 towards a living memorialisation project inthe upcoming financial year.

In practical terms, the programme is being implemented inthree ways:

• Branding and marketing the Central City as a zone ofcreative and cultural activities;

• Promoting and facilitating the development and provisionof spaces and infrastructure, in order to provide anenabling environment for creative and cultural businesses,activities, and events; and

• Establishing networking activities for people working invarious creative and cultural industries.

In the East City, the focus is on creating synergy betweenspaces and buildings such as the Grand Parade, City Hall, theCastle, Old Granary Building, Cape Craft and Design InstituteInnovation Hub and D6 Museum.

Church Square Upgrade

Church Square is a public space of historical and culturalsignificance and was identified by the City of Cape Town, theCape Town Partnership and a number of other stakeholders as an area requiring intervention. It is consequently beingtransformed from a run-down parking area to an active andvibrant pedestrian-friendly public space.

The Cape Town Partnership’s Creative Cape TownProgramme is a social, economic and spatialprogramme, using culture towards urbanregeneration in the Central City in order to build an inclusive civic identity and a vibrant economy.

For the third year in succession, the Partnership and the CCIDsponsored the Community Jazz Concert on Greenmarket Square,the curtain-raiser to the Cape Town International Jazz Festival inMarch. Young performing artists from local communities also tookto the stage for the first time as part of the event’s socialdevelopment programme.

Church Square before and after revitalisation.

The Cape Craft and Design Institute’s (CCDI’s) Centre forInnovation/Fab Lab, located in the East City, is a first for South Africa.A collaborative effort between the CCDI, the Western CapeProvincial Government, and the Advanced ManufacturingTechnology Strategy of the Department of Science and Technology,the Centre provides a state-of-the-art equipped venue aimed atpromoting cutting edge design, product development, and processtechnologies for crafters and designers in the Western Cape.

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Phase One of the project has been completed. Once thesecond and third phases have been completed, therejuvenated Church Square will become a creative hub andmeeting place for all users of the Central City.

Given its proximity to the Iziko Slave Lodge, theredevelopment process will provide an excellent potential tomemorialise slave history. Phases Two and Three are due forcompletion in the new financial year.

Community Chest Twilight Fun Run

The Partnership teamed up with one of the Central City’smost popular annual events, the Community Chest TwilightFun Run, which took to the streets on 29 November 2005. Theevent once again proved to be an evening of gentleexercise, fun costumes, and entertainment enjoyed bythousands of participants who brought a spirit of joy for life tothe Central City, all for a good cause.

Cape Town International Jazz Festival

The Partnership and the CCID jointly funded the CommunityConcert held on Greenmarket Square on 30 March, allowing

many Capetonians and visitors the opportunity to samplesome of the finest local and international acts in an open-airsetting. The Partnership purchased a corporate suite at themain jazz event for the second year running which againproved to be a valuable networking opportunity.

Creative Cape Town Reference Group

A group of 22 individuals from diverse sectors within creativeindustries have agreed to serve on the Partnership’s‘Creative Cape Town’ Reference Group. This group meetsonce a month to assess the programme and offer adviceand guidance on specific projects. The Reference Group isused to share information about forthcoming cultural eventsand activities, and to debate relevant themes.

Creative Cape Town Walking Tour

A custom-designed walking tour of the Central City,showcasing Creative Cape Town sites, buildings andactivities will be developed and launched at the DesignIndaba in February 2007.

The Community Chest Twilight Team Run isone of Cape Town’s most anticipatedannual events as it brings with it anevening filled with fun, excitement andgreat entertainment. This year the CapeTown Partnership partnered with theCommunity Chest for this event, whichattracted a record number of participants.

The Partnership hosted delegates to theCape Town International Book Fair on aspecialised walking tour of the Central City,designed to showcase centres of learningand knowledge and, of course, books.

The countdown to the 2010 Football World Cup has begun, an event which has obvious implications for the future growthand development of both the Central City and the city as a whole. The Cape Town Partnership is part of the City of Cape Town’s 2010 Planning Team, and is working closely with the City on many aspects of the planning for this prestigiousevent. Potential benefits include the upgrading of public transport infrastructure including the inner-city transport system, theCape Town International Airport, and the Cape Town Station, improved public spaces and tourism infrastructure. The WorldCup should further enhance Cape Town’s global profile, encourage long-term investment and boost tourism.

2010 will provide an opportunity to showcase Creative Cape Town to the world. There is an outstanding opportunity todesign a ‘Fan Mile’ between the Central City and the stadium in Green Point as one of the main public viewing pointsfor the World Cup.

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The Partnership works with public authorities to promote:

• Improved public transport (rail, bus, taxi)• Revitalisation of the Cape Town Station• Inner city public transport • Additional public and private parking • Pedestrian mobility in the Central City, through upgrading

of building facades, pavements, and pedestrian safetymeasures

• Dedicated commuter and tourist bicycle routes• Improved public space, in particular, public squares• Improved provision and maintenance of public toilets and

provision of street furniture and signage

Cape Town Station Upgrade

The South African Rail Commuter Corporation, Intersite, andMetrorail, together with the City of Cape Town, the WesternCape Provincial Government, the Cape Town Partnership,and the Central City Improvement District have constituted

the Cape Town Station Precinct Revitalisation Steering

Committee. The project is aimed at upgrading the station asa multi-nodal transport centre, improving the experience ofcommuters and integrating the station more closely into theCentral City. A professional team has been appointed, andit is anticipated that a new Cape Town Station DevelopmentFramework will be ready by April 2007.

Grand Parade Upgrade

In mid-July 2005 a Heritage Impact Assessment (HIA) wascommissioned as part of the Partnership and the City’sGrand Parade Revitalisation Project to review and examinelegislative frameworks and policies, as well as existingplanning and heritage studies affecting the Grand Parade.Its mandate included analysing primary uses and socialfunctions of the area within the context of the broaderCentral City.

Two public participation workshops have been organised towhich interested and affected parties were invited to sharetheir views and concerns about the Parade.

Some of the main issues raised included informal trading,transport, events, and the preservation of the history andculture of the area. Safety, security, cleansing, and socialdevelopment remain key issues.

The City of Cape Town has initiated a three-year project torepair and regenerate the Grand Parade and has made acommitment to funding improvements over the next twobudget cycles.

St Andrew’s Square

The City of Cape Town is currently upgrading St Andrew’sSquare on Buitengracht Street, together with the SouthAfrican Heritage Resources Agency (SAHRA) and the Green Point CID.

Construction has started and the redevelopment ishappening in two phases, the first of which consists ofrepaving and greening and the provision of street furniture.The main walkway which bisects the site will also be repaved.

The upgrading process will also provide an economicopportunity for the local community through the renovationof the existing kiosk into a snack bar.

The second phase will include the construction of an ossuaryto house the human remains discovered in Green Point, andthe development of this area into a place of remembrance.It is anticipated that the project will be completed by April 2007.

ACCESS AND MOBILITY

The Cape Town Central City, despite itsgeographically ‘eccentric’ location, remainsrelatively accessible to the majority ofcommunities in Cape Town, especially whencompared to the rapid expansion of areas inthe north east of the metropolis which are lesswell served by commuter rail and bus networks.

Construction of a Garden ofRemembrance is currently underwayat St Andrew’s Square on BuitengrachtStreet. This public open space, oncecompleted, will memorialise humanremains that were unearthed duringconstruction in the Green Point area.

CCID Precinct OneManager, Richard Beesely,patrols the Foreshore Areaon a bicycle to promotecycling in the Central City.

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It is estimated that there will be an additional 3 000apartments in Town by the end of 2006, mainly through theconversion of under-utilised B- and C-grade commercialproperties to residential/mixed-use. This will significantlyincrease the inner city’s residential population.

Key residential developments that have been completedthus far include Mutual Heights, Adderley Terraces,Cartwright’s Corner, Wellington Fruit Growers, Perspectives,Namaqua House, Greenmarket Place, Greenmarket Suites,Kimberley House, Wolroy Building, Hip Hop Plaza, and No. 1Church Square.

In the past year, the Partnership has provided assistance to anumber of potential developers with the identification ofvacant public land and buildings within the Central City for

social housing. Partnerships have also been forged withsocial housing companies for the construction of affordablehousing in the Central City. The Partnership, together with theSocial Housing Company (SOHCO), participated at theDesign Indaba from 24 to 26 February this year at the CapeTown International Convention Centre. The Partnership’sexhibition aimed to demonstrate the shared vision of creatinga diverse Central City where a cross-section of activities andincome groups can be located. The year ahead will see there-doubling of efforts to realise this objective, and to diversifythe range of housing options in the Central City to make thearea more accessible.

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LIVING IN TOWN

During the 1960s and ‘70s, over 60 000 people were forciblyremoved from District Six in the Central City in terms of thenotorious Group Areas Act. Up to 4 000 houses will bedeveloped in District Six as part of a land restitution process.

The Partnership and the Social Housing Company (SOHCO)showcased affordable housing concepts at this year’s Design Indabaand Design for Living Exhibitions. This picture shows an example ofaffordable housing near the Buffalo City (East London) CBD.

Regeneration of the Central City needs to bringbenefits to all residents. The Kraal informalsettlement in the Bo-Kaap is indicative of someof the ongoing challenges.

The Cape Town Partnership advocates theprinciple of urban balance and a morecompact city, whereby most of a cross-sectionof activities and income groups should be found within walking distance. ThePartnership supports the goal of at leastdoubling the Central City residentialpopulation over the next ten years, to alsoinclude the provision of affordable, welllocated, housing.

Cape Town’s Central City has regained itstraditional role as the productive centre of themetropolitan economy. Key growth sectorssuch as the finance and business servicessectors have been retained, while retail,tourism, information and communicationstechnologies (including call centres andbusiness-process outsourcing) and creativeand cultural industries (including advertising,design, film, media, publishing, visual arts,performing arts, etc.) have all expanded.

In last year’s Annual Report extensive mention was given tothe high level of construction and upgrading activity in theCentral City. The rate of development remains high andinvestor confidence in Cape Town’s Central City continues tobe encouraging.

Some of the significant developments under way in theCentral City include the commercial redevelopment ofMonte Carlo, Broadway Boulevard and Hertzog Boulevardbuildings into a Media City; Convention Tower, a R200-million,

16 storey A-grade commercial development adjacent to theCape Town International Convention Centre; and Mandela-Rhodes Place (which includes an inner-city winery). The Icondevelopment is also due for completion by year-end.

Developments planned for the year ahead include:

• No. 4 Church Square • No. 11 Adderley Street • Temple House • The Australasian Building • Creative House • The Grand Parade • The Cape Town Station• The Adderley/Strand Intersection, including the Woolworths

and old Edgars Buildings

Development Facilitation Advice

The Partnership continues to provide investment trendinformation to potential investors, and assists with advisingdevelopers and other interested parties with information onniche industries, development opportunities, liaison withplanning authorities and retail trends. Over the past year, thePartnership has dealt with over 200 inquiries.

Cape Town has 1 669 741m2 of A- and B-grade office stock, of which721 121m2 (42.6%) is in the Central City. The Partnership continues tofocus on attracting domestic and foreign investment into the CentralCity by networking with property owners, developers, brokers,investors, and bankers, as well as statutory planning authorities.

PRODUCTIVE CITY

The East City has seen significant development and improvement to the urbanfabric generally since the Partnership’s East City Investment Conference heldin October 2004. Total investment into the area since 2003 amounts toapproximately R1 020.5-million. Completed developments include, amongstothers, No. 1 Church Square; the Universal Church; Old Town Square; MutualHeights; Cartwright’s Corner; Wellington Fruit Growers; and Adderley Terraces.

The Central City offers a unique ‘more than a mall’ experienceto both local shoppers and tourists. The retail experience,based on approximately 980 retail outlets, provides access tospecific niche markets, including African markets, coffeeshops, antique dealers, galleries, motor vehicles andhomeware, as well as a superb range of restaurants.

The Central City attracts 400 200 daily inbound commuters. It has retained itstraditional role as the productive centre of the metropolitan economy, bycontinuing to contribute 33% to the Gross Geographic Product and providejobs in key growth sectors such as finance and business services, retail,tourism, information and communications technologies and creative andcultural industries.

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Knowledge-sharing around Urban Management andDevelopment Issues

The success achieved by the Cape Town Partnership and CityImprovement Districts in Cape Town has generated muchinterest in South Africa and abroad. As a result, the Partnershipis called upon by other cities and municipalities wishing toestablish vehicles for inner city regeneration and urbanmanagement. During the year under review the Partnershiphosted visits by delegations from Tshwane, Mangaung and the Nelson Mandela Metropole, and offered advice andassistance to a CID that was launched in Libreville. The CCID’sChief Operations Officer, Derek Bock, was appointed amember of the International Task Force of the InternationalDowntown Association, which will open up further opportunitiesfor knowledge-sharing and information exchange.

The establishment by the Partnership and the City of CapeTown of the Cape Town Business Areas Network aims to linkall large and small, established and emerging, businessareas in greater Cape Town in an information andknowledge-sharing network, and will provide a powerfulforum for interaction between those bodies concerned withurban regeneration, both regionally and nationally.

Participation at SAPOA’s Annual National PropertyConference

The Cape Town Central City’s revitalisation success story wasshowcased at the SA Property Owners’ Association’s (SAPOA)Annual Conference at the Durban Convention Centre from17 to 19 May. The Partnership has benefited vastly fromexposure at this conference over the years; it has helpedposition the Cape Town Central City as one of the primeregeneration nodes in the country.

Increase in Number of Central City Hotels

Cape Town’s Central City is rapidly re-emerging as a leadingtourism destination in its own right. More and more visitors arelooking beyond the traditional scenic icons and areexpressing a desire to experience the culture and heritage ofthe people of Cape Town. Currently, at least seven newhotels have been added or are currently being developed.Examples include Urban Chic, Cape Diamond, DaddyLonglegs, and the North Wharf Protea.

Accelerated and Shared Growth Strategy

In May 2006, the Cape Town Partnership presented a paper onthe role of the Central City in the context of the Acceleratedand Shared Growth Strategy to the Provincial DevelopmentCouncil’s Infrastructure Committee. The paper was alsopresented at a meeting of the Partnership’s Business Forum.

Stakeholder Communication

The Partnership’s website is proving to be a valuable sourceof information, and the institution of internal procedures to co-ordinate the generation of new content to ensure that theinformation and layout remains dynamic is delivering positiveoutcomes. Our electronic newsletter – Siyahluma – wasintroduced during the last financial year and is distributed

monthly to over 2 000 stakeholders both locally andinternationally.

The development of a new strategic marketing document, theCape Town Profile, during the year under review provides abroad range of readers with statistical and economicinformation about Cape Town, and also gives specificinformation about Partnership projects and programmes. Thisdocument has been made available at all exhibitions andtrade fairs during the year, is updated quarterly, and isavailable on the website in English, Afrikaans and isiXhosa.

A new Knowledge Management System (KMS) was alsoimplemented during the period, thereby enabling the moreefficient management of information internally. The followingdatabases form part of the KMS:

• Investments, including commercial, residential, and hotels • Cultural industries• Affordable housing • Public buildings and spaces• Retailers • Sites of memory • Property• Public and private parking • Contacts • Safety and security

After dark, the Central City takes on a vibrant nightlife energy and asthe day’s suits are put away, the real fun begins. The urban regenerationof the Central City has seen a blossoming of night time leisureattractions and the Central City has an eclectic mix of restaurants,nightclubs, wine bars, cocktail lounges and music pubs.

The Cape Town Call Centre industry offers a wide range of services includinginbound and outbound sales, inbound customer services, data cleansing,appointment setting, medical scheme assistance, technical support andemergency services. Business process outsourcing (BPO) in Cape Town is alsogrowing strongly. The growth of the industry is a response to the favourableinvestment climate as well as the increasing demands of local andinternational markets for more cost effective services.

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Urban management services provided through a partnershipbetween the City of Cape Town and City ImprovementDistricts include:

• Safety and security • Removal of graffiti and illegal posters • Cleansing • Management of public space • Waste removal• Building waste management • Street sweeping • Management of informal trading • Illegal dumping • Film shoot management • Recycling • Signage and public information • Noise pollution monitoring • Painting of street poles and road markings• Traffic and parking management• Street furniture upgrades and maintenance • Storm water drainage

Safety and Security The CCID provides 66 foot patrol officers during the day, 6horse units, 40 foot patrols at night, and 6 mobile patrol officerson 24-hour duty.

The value of security partnerships was evident earlier this yearwhen the private security strike placed some strain on safety inthe Cape Town Central City. The Central CID responded byincreasing its security presence in Town to include 10 responsevehicles during the day and 8 at night, and a core team of 16undercover officers. The South African Police Servicesprovided additional manpower to supplement the securityshortfall and the CCID conducted an intensive awarenesscampaign aimed at Central City users, including personalvisits to key role-players to inform them that the Central CIDwas still providing security services.

Cleansing

1 137 tons of waste was removed from the Central City by theCCID during the year under review, a 537 ton increase on lastyear’s volume.

Cape Town Station Deck Upgrade

The City of Cape Town, the Partnership, the CCID, SAPS, Intersite,and other role-players have formed a task team to address arange of challenges on the Cape Town Station Deck, includingsafety and security, cleansing, the management of informaltrading, and taxi rank management. Interventions by the taskteam are beginning to have a positive impact, but there is stillmuch work to be done to improve conditions for the 60 000 dailytaxi commuters.

Kerbside Parking

Available short-term public parking is key in the Central Cityand has been a focus of the Partnership since 2000. A new,labour-intensive system utilising hand-held meters waslaunched in August 2005, and the Cape Town Partnershipcontinued to manage the system on behalf of the CityCouncil. In May 2006 the City of Cape Town advertised a new‘Request for Proposals’ for an updated parking managementsystem following a lengthy legal process. An interim systemwas consequently put in place in the Central City, Sea Pointand Claremont business areas to ensure continuity. Decisionsregarding the management of the kerbside parkingmanagement system will likely be finalised in the upcomingreview period.

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QUALITY URBAN MANAGEMENT

The maintenance of high quality services tothe users of Cape Town predominantly throughmanagement of, and strategic advice to, City Improvement Districts.

Improving the aesthetics of the Central City is an important aspect of‘getting the basics right’. While the Partnership’s focus has broadenedto strategic social, developmental, and economic issues, basicdeliverables such as cleansing, security, and maintaining the urbanfabric remain important areas of focus.

A well-functioning kerbside parking management system ensures theprovision of safe and secure parking for Central City motorists. ThePartnership ensures the monitoring and management of the City’sappointed kerbside parking operators and advises the City onoperational issues.

During the year under review, the Partnership has providedguided walks to over 1 500 individuals from a wide range oforganisations. Amongst the organisations and bodies hostedon a walking tour were:

• 900 tour operators from Germany• Members of the Parliamentary Housing and Arts & Culture

Portfolio Committees• Property development and management companies• Delegates to the 10th African Congress of Shopping

Centres • Various educational institutions • Tour operators• The City of Cape Town’s Mayoral Committee and top

management team• The Cape Town Station Revitalisation Steering Committee • Participants of the Partnership’s AGM in October 2005• Delegates to the South African Cities’ Network’s Urban

Renewal Seminar • Delegates to the Cape Town International Book Fair• Staff of Wesgro and Calling the Cape• Members of the public

The Cape Town Partnership’s walking tourshave proved a popular and an effectivemeans of re-introducing Capetonians to- andfamiliarising visitors with Cape Town’s CentralCity. The main purpose of the walking tours isto raise awareness of developments in theCentral City.

WALKING TOURS

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• Church Square revitalisation• Hoerikwaggo Trail, South African National Parks • VANSA Art Night, Visual Arts Network • Business Forum Breakfast• ICLEI World Congress• Cape Town Marathon• Cape Town International Jazz Festival Community Concert• Eurocape Investment seminar• Investment promotion visit to India with Wesgro • The white lines painting team with Straatwerk and the City of

Cape Town • Partnerships on social development, homelessness, and job

creation with a range of NGOs such as Men at the Side of theRoad, the Big Issue, City Mission, and The Ark.

• Security partnerships with SAPS, private security, and theCity’s metro police to ensure that the Central City is safe andsecure 24-hours a day

• Community policing forums

The Cape Town Partnership is a collaborationbetween Cape Town’s private and publicsectors. The following events and activities aresome examples of successful partneringbetween us and other organisations:

Hundreds of Capetonians took to the streets in May in silent protest againstviolence in Cape Town. Among them were religious leaders, politicians,celebrities, those personally affected by violence, and concerned individuals.The event was organised by Cape Talk Radio.

PARTNERSHIPS IN ACTION

The sponsorship, development, andencouragement of new and existing eventsare integral to creating an environment thatdraws people to the Central City for leisureand business. Effective marketing enhancesthe appeal of the Central City, serves topromote retailers and restaurants, and assistswith the creation of new business opportunities.

Supplementary security and cleansing is provided by the CCIDfor events such as the Twilight Fun Run and the Switching on ofthe Festive Lights. Other events in town include:

• The Adderley Street Night Market• The Cape Town International Book Fair• The Fashion Festival • St Patrick’s Ball, establishing the St Patrick’s Trust • Cape Town Marathon• Cape Town International Jazz Festival• Sithengi Film Festival• Pick ‘n Pay/Argus Cycle Tour• Opening of Parliament

Central City businesses earlier this year joined the energy-saving campaignbeing conducted by Eskom across the Western Cape. The awareness driveby Eskom, the City of Cape Town, and the Cape Town Partnership took theform of individual visits to 75 companies, a public awareness campaign andtwo workshops with top property management companies and their tenants.Businesses generally responded positively to the call to save energy.

EVENTS

Page 15

Switching on of Festive Season Lights at the beginning of December.

The Partnership’s stakeholders include business organisations,private sector investors, bodies involved in tourism, investmentpromotion, housing, transport, social welfare, hospitality,property management, and local, provincial and nationalgovernment. New networks and constituencies are reflected inthe expanded composition of the Partnership’s board.

Public sector support takes the form of an annual grant from theCity of Cape Town, and the close involvement of many Cityofficials and senior managers in programmes and projects.

Private sector support continues to take the form of financialcontributions, assistance, and participation with projects andprogrammes. In this regard, the support and assistance thePartnership has enjoyed from members of the Business Forum hasbeen invaluable.

The Partnership’s corporate sponsors are:

• AHI Western Cape• Archwood Projects• Arcus Gibb (Pty) Ltd• BP SA (Pty) Ltd• Cape Peninsula University of Technology• CBS Property Trust (Pty) Ltd• Community Chest• Edgars Consolidated Stores• Energy Africa Ltd• Ernst & Young• Eurocape Holdings• First National Bank• Gensec• Golding Commercial Properties• Green Point CID / Oranjekloof CID• Investec (Pty) Ltd• Iziko Museums• KPMG• Metropolitan Life• Nedbank Limited • Old Mutual Properties• Pam Golding Properties• Queensgate Holdings – Market Hotel Investments• Radisson Hotel, Waterfront• RMB Properties (Pty) Ltd• Securicor (SA) (WC)• Shoprite Checkers• Southern Sun• Spar Group• Spearhead Property Group• Standard Bank Asset Management• Theodore Yach Property Services• Truworths• V&A Waterfront• Woolworths (Pty) Ltd• Zenprop Management Services

STAKEHOLDER SUPPORT

Efforts to grow and sustain the Cape Town Partnership are ongoing. Contact is maintained withthe organisation’s broad range of stakeholders and funders by means of an annual businessbreakfast, presentations on specific projects and activities, and through various Partnershipcommuniqués.

Page 16

I would like, on behalf of the Cape Town Partnership, to thankthe wide range of organisations that have participated withus in the revitalisation of Cape Town’s Central City. Inparticular, I wish to welcome and acknowledge Mayor Helen Zille and her new management team at the City ofCape Town.

Acknowledgement too must go to the cordial workingrelationships we have with many marketing and developmentagencies in Cape Town, among these are: the Cape TownInternational Convention Centre, Cape Town Routes Unlimited,Cape Town Tourism, the Cape Craft and Design Institute, IzikoMuseums, Table Mountain National Park, the V&A WaterfrontCompany, the Film Commission, the Cape InformationTechnology Initiative, Wesgro and Calling the Cape.

The support, advice and direction I receive from my Board ofDirectors is sincerely valued and appreciated. My thanks goto the staff of both the Cape Town Partnership and the CIDs,as well as our partners in the private and public sectors fortheir hard work and continued support in the past year.

It is indeed satisfying to know that we have a mix ofcommitted people with the right skills and vision to continuemaking Cape Town a productive, inclusive, creative andproud city of Africa.

ANDREW BORAINEChief Executive

The recent successful Homeless World Cup held on the Grand Paradegives us a glimpse of what a Central City 2010 ‘fan-mile’ could look like.

Patrons enjoy the bars and pubs along Upper Long Street at night.

Page 17

Page 18

Directors’ Responsibility for the Annual Financial

Statements 19 Declaration by Company Secretary 19

Independent Auditor’s Report 20 Directors’ Report 21

Income Statement 22 Balance Sheet 23 Statement of Changes

in Equity 24 Cash Flow Statement 25 Notes to the Financial

Statements 26 - 30 Other information not covered by the Audit

Opinion: Detailed Income Statement Annexures 31 - 34

Directors’ Responsibility for the Annual Financial

Statements 19 Declaration by Company Secretary 19

Independent Auditor’s Report 20 Directors’ Report 21

Income Statement 22 Balance Sheet 23 Statement of Changes

in Equity 24 Cash Flow Statement 25 Notes to the Financial

Statements 26 - 30 Other information not covered by the Audit

Opinion: Detailed Income Statement Annexures 31 - 34

CONTENTS

ANNUAL FINANCIAL STATEMENTSfor the year ended 30 June 2006

Page 19

DIRECTORS’ RESPONSIBILITY FOR THE ANNUAL FINANCIAL STATEMENTS

In my capacity as Company Secretary, I hereby confirm,

in terms of the Companies Act, 1973, that for the year

ended 30 June 2006, the Company has lodged with the

Registrar of Companies all such returns as are required

of a company in terms of this Act and that all such

returns are true, correct and up to date.

Anthony Fisher

(Company Secretary)

DECLARATION BY COMPANY SECRETARY

The directors are responsible for monitoring the

preparation of and the integrity of the financial

statements and related information included in this

annual report.

In order for the board to discharge its responsibilities,

management has developed and continues to

maintain a system of internal control. The board has

ultimate responsibility for the system of internal control

and reviews its operation.

The financial statements are prepared in accordance

with South African Statements of Generally Accepted

Accounting Practice, and in the manner required by

the Companies Act in South Africa, and incorporate

disclosure in line with the accounting philosophy of the

company. They are based on appropriate accounting

policies consistently applied and supported by

reasonable and prudent judgements and estimates.

The directors believe that the company will be a going

concern in the year ahead. For this reason they

continue to adopt the going concern basis in

preparing the annual financial statements.

The annual financial statements for the year ended 30

June 2006 set out on pages 20 to 34 were approved by

the board of directors on 31 October 2006 and are

signed on its behalf by

SA Johnson

(Chairman)

AM Boraine

(Chief Executive)

Page 20

INDEPENDENT AUDITOR’S REPORT

TO THE MEMBERS OF CAPE TOWN CENTRAL CITY

PARTNERSHIP

We have audited the annual financial statements of

Cape Town Central City Partnership (Association

incorporated under section 21) set out on pages 21 to

30 for the year ended 30 June 2006. These financial

statements are the responsibility of the company's

directors. Our responsibility is to express an opinion on

these financial statements based on our audit.

We conducted our audit in accordance with

International Standards on Auditing. Those Standards

require that we plan and perform the audit to obtain

reasonable assurance about whether the financial

statements are free of material misstatement. An audit

includes examining, on a test basis, evidence

supporting the amounts and disclosures in the

financial statements. An audit also includes assessing

the accounting principles used and significant

estimates made by management, as well as

evaluating the overall financial statement

presentation. We believe that our audit provides a

reasonable basis for our opinion.

In our opinion, the financial statements present fairly, in

all material respects, the financial position of the

company at 30 June 2006 and the results of its

operations and cash flows for the year then ended in

accordance with South African Statements of Generally

Accepted Accounting Practice, and in the manner

required by the Companies Act in South Africa.

The supplementary schedules set out on pages 31 to

34 do not form part of the annual financial statements

and are presented as additional information. We have

not audited these schedules and accordingly we do

not express an opinion on them.

KPMG Inc.

Registered Auditor

Per CA Steven-Jennings

Chartered Accountant (SA)

Registered Auditor

Director

31 October 2006

Page 21

DIRECTORS’ REPORTfor the year ended 30 June 2006

The directors have pleasure in presenting their reportfor the year ended 30 June 2006.

Business activitiesTo develop, manage and promote the Central City ofCape Town as a place for all, and a leading centre forretail, commercial, residential, cultural, tourism,education, entertainment, and leisure activities.

General review of operationsThe business and operations of the companycontinued as in the prior year and we have nothingfurther to report thereon.

The annual financial statements adequately reflect thestate of affairs and the results of the business operationsof the company and no further explanations areconsidered necessary.

Share capitalThe company does not have share capital, but islimited by guarantee.

DirectorsThe directors who held office during the accountingperiod and/or to the date of this report are -

SA Johnson (Chairman)LO Anderson (Alternate) (Resigned 24 October 2005)CF Beerwinkel (Appointed 24 October 2005;

Resigned 21 July 2006) AM Boraine CA Boyes (Alternate) IR Douglas (Alternate) (Resigned 25 November 2005)A Ebrahim (Appointed 21 July 2006) D Elzinga (Appointed 21 July 2006)

PJ Gordon MJ Hall MY Kajee (Appointed 19 August 2005;

Resigned 22 December 2005) HAS Khan TM Mashologu WA Mgoqi (Resigned 21 July 2006) Z Minty EA Pieterse AL Rabie JM Rippon LK Robinson KM Roman I Samuels (Alternate) (Resigned 24 October 2005) AM Serritslev (Appointed 21 July 2006) TR Sikhutshwa (Appointed 24 October 2005;

Resigned 21 July 2006) MC Sitonga (Resigned 24 October 2005) DC Skeate Z Vokwana (Alternate) (Appointed 24 October 2005;

Resigned 21 July 2006)

SecretaryThe secretary at the date of this report is Anthony Fisher.

Business address 10th Floor, The Terraces34 Bree StreetCape Town8001

Postal address PO Box 1997Cape Town8000

Page 22

INCOME STATEMENTfor the year ended 30 June 2006

Note 2006 2005

R R

Revenue 8 454 203 8 168 782

Operating expenses (9 711 640) (9 181 146)

Other income 77 522 20 602

Deficit from operations 2 (1 179 915) (991 762)

Finance income 110 071 204 632

Finance expense - (274)

Net deficit for the year (1 069 844) (787 404)

Page 23

Note 2006 2005

R R

Assets

Non-current assets

Equipment 4 229 214 315 868

Current assets 2 641 006 3 317 891

Trade and other receivables 1 699 367 854 891

Cash and cash equivalents 941 639 2 463 000

Total assets 2 870 220 3 633 759

Reserves and liabilities

Reserves

Accumulated surplus 797 271 1 867 115

Current liabilities 2 072 949 1 766 644

Trade and other payables 2 020 025 1 462 565

Loan from related party 5 - 32 286

Income received in advance 6 52 924 271 793

Total equity and liabilities 2 870 220 3 633 759

BALANCE SHEETat 30 June 2006

Page 24

Accumulated surplus

R

Balance at 1 July 2004 2 654 519

Net deficit for the year (787 404)

Balance at 30 June 2005 1 867 115

Balance at 1 July 2005 1 867 115

Net deficit for the year (1 069 844)

Balance at 30 June 2006 797 271

STATEMENT OF CHANGES IN EQUITYfor the year ended 30 June 2006

Page 25

CASH FLOW STATEMENTfor the year ended 30 June 2006

Note 2006 2005

R R

Cash absorbed by operations 9.1 (1 597 117) (90 180)

Interest received 110 071 204 632

Interest paid - (274)

Net cash (outflow)/inflow from operating activities (1 487 046) 114 178

Cash flows from investing activities

Acquisition of equipment

- Additions (34 315) (245 842)

Net decrease in cash and cash equivalents (1 521 361) (131 664)

Cash and cash equivalents at beginning of year 2 463 000 2 594 664

Cash and cash equivalents at end of year 941 639 2 463 000

Page 26

1 Accounting policiesThe financial statements incorporate the principal accounting policies set out below, which are consistent withthose adopted in the previous financial year.

1.1 Statement of complianceThe financial statements are prepared in accordance with South African Statements of Generally AcceptedAccounting Practice and the requirements of the South African Companies Act.

1.2 Equipment(i) Owned assets

Items of equipment are stated at cost, less accumulated depreciation and impairment losses.

(ii) Leased assetsLeases in terms of which the company assumes substantially all the risks and rewards of ownership areclassified as finance leases.

(iii) Subsequent costsThe company recognises in the carrying amount of an item of equipment the cost of replacing part ofsuch an item when that cost is incurred if it is probable that the future economic benefits embodied withthe item will flow to the company and the cost of the item can be measured reliably. All other costs arerecognised in the income statement as an expense when incurred.

(iv) DepreciationDepreciation is charged to the income statement on a straight line basis over the estimated useful livesof each part of an item of equipment. The residual value, if not insignificant, is reassessed annually.

(v) Profit/(loss) on disposalSurpluses/(deficits) on the disposal of equipment are credited/(charged) to income. The surplus or deficitis the difference between the net disposal proceeds and the carrying amount of the asset.

1.3 Financial instrumentsMeasurementFinancial instruments are initially measured at cost, which includes transaction costs. Subsequent to initialrecognition these instruments are measured as set out below.

Trade and other receivablesTrade and other receivables originated by the company are stated at cost less provision for doubtful debts.

Financial liabilitiesFinancial liabilities are recognised at cost, comprising original debt less payments.

1.4 RevenueRevenue comprises contributions, net invoiced membership fees, administration fees and other operating income,excluding VAT.

1.5 ProvisionsProvisions are recognised when the company has a present legal or constructive obligation as a result of pastevents, for which it is probable that an outflow of economic benefits will occur, and where a reliable estimatecan be made of the amount of the obligation.

NOTES TO THE FINANCIAL STATEMENTSfor the year ended 30 June 2006

1.6 Employee benefitsShort term employee benefitsThe cost of all short term employee benefits is recognised during the period in which the employee renders the relatedservice.

The provisions for employee entitlements to wages, salaries, and annual leave represent the amount which thecompany has a present obligation to pay as a result of employees' services provided to the balance sheet date. Theprovisions have been calculated at undiscounted amounts based on current wage and salary rates.

1.7 Cash and cash equivalentsCash and cash equivalents comprise cash on hand, deposits held on call with banks, and investments in moneymarket instruments, net of bank overdrafts, all of which are available for use by the company unless otherwise stated.

2006 2005R R

2. Deficit from operationsis arrived at after taking into account:

Audit fee- current year 61 049 67 310Depreciation of equipment 120 969 88 110Director’s emoluments - executive services 1 070 360 979 072Operating lease charges- premises 976 363 723 117City Improvement District administration fees received 3 692 548 3 033 056

3. EquipmentDepreciation Accumulated Carrying

rate Cost depreciation amount% R R R

2006Computer software 33.33 65 884 45 833 20 051Furniture 16.67 94 116 35 484 58 632Fittings 33.33 45 408 30 732 14 676Office equipment 16.67 94 192 19 181 75 011Computer hardware 33.33 180 628 119 784 60 844

480 228 251 014 229 214

2005Computer software 33.33 53 624 22 526 31 098Furniture 16.67 91 148 20 001 71 147Fittings 33.33 45 408 15 593 29 815Office equipment 16.67 89 692 3 217 86 475Computer hardware 33.33 166 041 68 708 97 333

445 913 130 045 315 868

Page 27

Page 28

3. Equipment (continued)

Carrying Carrying amount at amount atbeginning end of

of year Additions Depreciation yearR R R R

2006Computer software 31 098 12 260 (23 307) 20 051Furniture 71 147 2 968 (15 483) 58 632Fittings 29 815 - (15 139) 14 676Office equipment 86 475 4 500 (15 964) 75 011Computer hardware 97 333 14 587 (51 076) 60 844

315 868 34 315 (120 969) 229 214

2005Computer software 4 269 45 948 (19 119) 31 098Furniture 68 296 16 375 (13 524) 71 147Fittings 16 359 25 181 (11 725) 29 815Office equipment 10 879 78 293 (2 697) 86 475Computer hardware 58 333 80 045 (41 045) 97 333

158 136 245 842 (88 110) 315 868

4. Taxation

Provision has not been made for current or deferredtaxation as the company is exempt from income taxin terms of Section 10(1)(d)(iii) of the Income Tax Act.

2006 2005 R R

5. Loan from related party

This operating loan is unsecured, interest free and has no fixed term of repayment.

Cape Town Central City Improvement District(Association incorporated under section 21) - 32 286

NOTES TO THE FINANCIAL STATEMENTSfor the year ended 30 June 2006

Page 29

2006 2005 R R

6. Income received in advance

The Greenpoint City Improvement District (Association incorporated under section 21) and the Oranjekloof City Improvement District (Association incorporated under section 21) are no longer under the management of the Cape Town Central City Partnership (Association incorporated under section 21) as they became independent entities during the current year.

Membership fees - 95 213Greenpoint City Improvement District - 58 604Sea Point City Improvement District 52 924 54 792Oranjekloof City Improvement District - 63 184

52 924 271 793

7. Financial instruments

7.1 Credit riskThe maximum exposure to credit risk is represented by the carrying amount of each financial asset in thebalance sheet.

7.2 Fair valuesThe fair values of all financial instruments are substantially identical to carrying amounts reflected in thebalance sheet.

8. Related parties

8.1 Identity of related partiesThe following City Improvement Districts are managed by the Cape Town Central City Partnership (Associationincorporated under section 21), and work towards achieving the same objectives:- Cape Town Central City Improvement District (Association incorporated under section 21)- Sea Point City Improvement District (Association incorporated under section 21)

The Greenpoint City Improvement District (Association incorporated under section 21) and the Oranjekloof CityImprovement District (Association incorporated under section 21) are no longer under the management of theCape Town Central City Partnership (Association incorporated under section 21) as they became independententities during the current year.

The directors as listed in the directors' report.

Page 30

8. Related parties (continued)

8.2 Material related party transactionsDirector’s emoluments - refer note 2Administration fee received from Cape Town Central City Improvement District - refer note 2Administration fee received from Greenpoint City Improvement District - R231 399 (2005: R347 659)Administration fee received from Sea Point City Improvement District - R330 000 (2005: R308 838)Administration fee received from Oranjekloof City Improvement District -- R186 536 (2005: R261 751)Loan from related party - refer note 5Amounts received in advance from City Improvement Districts - refer note 6

2006 2005R R

9. Note to the cash flow statement

9.1 Cash absorbed by operationsOperating loss before interest (1 179 915) (991 762)Adjustment for - Depreciation of equipment 120 969 88 110Operating loss before working capital changes (1 058 946) (903 652)(Increase)/decrease in trade and other receivables (844 476) 2 491 832Increase in trade and other payables 557 460 549 847Decrease in loan from related party (32 286) -Decrease in income received in advance (218 869) (2 228 207)

(1 597 117) (90 180)

NOTES TO THE FINANCIAL STATEMENTSfor the year ended 30 June 2006

Page 31

DETAILED INCOME STATEMENTNOT COVERED BY THE AUDIT OPINIONfor the year ended 30 June 2006

ANNEXURE A

CAPE TOWN CENTRAL CITY PARTNERSHIP

2006 2005

R R

Revenue 8 454 203 8 168 782

City Improvement District administration fees 4 440 483 3 951 304

Contributions 1 754 387 1 754 387

Film income 64 111 149 432

Private sector membership fees 637 713 445 317

Parking income 1 557 509 1 429 746

Urban Regeneration Fund - 438 596

Other income 187 593 225 139

Interest received 110 071 204 537

Sundry income 77 522 20 602

8 641 796 8 393 921

Expenditure (refer to page 32) (9 711 640) (9 132 470)

Net deficit (1 069 844) (738 549)

Page 32

2006 2005

R R

ExpenditureAccounting fees 49 543 33 755Advertising - 108 603Audit fees 61 049 87 881Administration fees 3 006 36 246Bad debts 465 672 347 261Bank charges 9 175 12 040Computer expenses 34 673 18 426Courier costs 4 008 7 561Depreciation 120 969 88 110Donations to City Improvement Districts - 1 048Electricity and water 47 793 33 128Entertainment 19 447 33 721Gifts - 2 178Hiring costs 3 313 18 795Insurance 12 791 5 444Interest paid - 274Legal expenses 15 300 34 697Marketing 372 321 628 236Metropolitan council - levies 58 446 50 234Office expenses 7 017 17 531Office equipment 28 281 3 257Parking 259 3 979Penalties and interest 70 921 239 638Printing and stationery 102 400 63 374Project costs 723 903 855 430Public relations 360 086 360 000Premises rental 976 363 723 117Repairs and maintenance 705 11 692Salaries and wages 5 876 580 4 885 127Subscriptions 1 905 7 177Sundry expenses 10 780 46 844Telephone and fax 135 627 221 776Training 53 640 11 445Travel and accommodation 28 448 114 052Website expenses 57 219 20 393Total expenditure 9 711 640 9 132 470

DETAILED INCOME STATEMENTNOT COVERED BY THE AUDIT OPINIONfor the year ended 30 June 2006

ANNEXURE A (CONT)

CAPE TOWN CENTRAL CITY PARTNERSHIP

Page 33

2006 2005

R R

Other IncomeInterest received - 82

Expenses - (42 238)

Setup costs - 41 700

Bank charges - 538

Net deficit for the year - (42 156)

DETAILED INCOME STATEMENTNOT COVERED BY THE AUDIT OPINIONfor the year ended 30 June 2006

ANNEXURE B

CAMPS BAY CITY IMPROVEMENT DISTRICT

Page 34

2006 2005

R R

Other IncomeInterest received - 13

Expenses - (6 712)

Setup costs - 6 300

Bank charges - 412

Net deficit for the year - (6 699)

DETAILED INCOME STATEMENTNOT COVERED BY THE AUDIT OPINIONfor the year ended 30 June 2006

ANNEXURE C

UPPER CITY BOWL CITY IMPROVEMENT DISTRICT

Page 35

CAPE TOWN CENTRAL CITY PARTNERSHIP ("THE COMPANY")(AN ASSOCIATION INCORPORATED UNDER SECTION 21)REGISTRATION NUMBER 1999/009660/08

Notice is hereby given in accordance with section 179 of the Companies Act 61 of 1973 that the AnnualGeneral Meeting of the members of the Company will be held on 31 October 2006 at 09h00 in the Marco Polo Function Room at the Arabella Sheraton Hotel in Cape Town, for the following purposes:

AGENDA

1. Welcome

2. Report by the Chairman

3. Election of directors

The directors who have retired by rotation, namely Shaun Johnson, Annelie Rabie, Laura Robinsonand Denis Skeate, are available for re-election with the exception of Denis Skeate who will not beavailable for re-election. Any other nominations must reach the Chairman and Company Secretaryat least 48 hours before the time of the meeting.

4. To receive and consider the Annual Financial Statements for the year ended 30th June 2006,including the Directors' Report and the Auditors' Report thereon.

5. To consider the appointment and remuneration of the auditors.

6. To transact any such other business that may be transacted at an Annual General Meeting.

Any Member entitled to attend and vote at the meeting is entitled to appoint one or more proxies toattend and vote in his stead. A proxy need not also be a Member of the company.

Proxy forms should be forwarded to the office of the company's secretary, 10th Floor, The Terraces, 34 Bree Street, Cape Town 8001, and marked for the attention of Mr Fisher, and such proxy forms mustreach the office of the company's secretary not less than 48 hours before the time for the holding of the meeting.

COMPANY SECRETARYAnthony Fisher

NOTICE OF ANNUAL GENERAL MEETING

Page 36

FORM OF PROXY

CAPE TOWN CENTRAL CITY PARTNERSHIP ("THE COMPANY")

(AN ASSOCIATION INCORPORATED UNDER SECTION 21)

REGISTRATION NUMBER 1999/009660/08

For use by members of the Company at the Annual General Meeting to be held on 31 October 2006 at 09h00.

I, (full name of member)

being a member of the Company do hereby appoint

or failing him / her

or failing him / her, the Chairperson of the meeting

as my proxy to act for me and on my behalf at the Annual General Meeting of the Company to be held on

31 October 2006 at 09h00, and at any adjournment thereof.

MATTER VOTING INSTRUCTION

To elect directors SPECIFIC INSTRUCTIONS

To adopt the annual financial statements IN FAVOUR / AGAINST / ABSTAIN

To confirm the appointment and remuneration of the auditors IN FAVOUR / AGAINST / ABSTAIN

Signed at on this day of 2006.

Member

NOTE: if this form, duly signed, is lodged without specific instructions as to how the proxy is to vote, the proxy shall

be deemed to have been authorised to vote as he / she deems fit.

A member entitled to attend and vote at the meeting is entitled to appoint a proxy to attend, speak and vote

thereat in his / her stead. Such proxy need not be a member of the Company. Each proxy shall be lodged with

the Chairperson or the Company Secretary at least 48 hours before the time for the holding of the meeting at

which the vote is to be exercised.

City of Cape Town (Bruce Sutherland)

Cape Town Routes Unlimited

Cape Connected

Design Indaba

Life Residential

Minizu Cleansing Solutions

Trevor Samson

Produced by Corporate Image

Design and DTP by Jenny M Design

Printing by Fairstep

ACKNOWLEDGEMENTS