An iconic skyscraper in Cape Town's central business district, dating from the 1970s, is being redeveloped into a mixed-use building called Foreshore Place.

Situated on the corner of Adderley Street, Riebeek Street and St George's Mall, it was previously known as the Absa building.

Foreshore Place will have 15 floors of commercial space with the ground floor offering banking facilities, coffee shops, food and other shops. Above the commercial space will be 11 floors of residential units, consisting of 99 one-bedroom apartments, nine two-bedroom apartments and 63 studio apartments.

The fourth floor is set to feature a business and resident's lounge and entertainment terrace.

Foreshore Place is designed by KMH Architects, marketed by Dogon Group Properties and developed by the HBW Group.

Rob Stefanutto, managing director of Dogon Group Developments, said in a statement on Wednesday that prices will start from R1.164m for the studio apartments which range in size from 23.9m² to 33.1m².

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One-bedroom apartments start at R1.569m, with sizes ranging from 41.9m² to 51.7m². The two-bedroom units start at R3.789m with sizes starting at 71.6m².

"We anticipate high-demand for the apartments within Foreshore Place. The studio apartments in particular meet the modern trend of more affordable inner-city micro living," said Stefanutto.

"Millennials are looking for location over square meterage, they want to be close to the city centre, able to walk, bike, or rely on public transportation, and with many focused on their careers and social lives younger buyers are rethinking their homes - looking at them as spaces to recharge instead of host."

Work on Foreshore Place has already commenced with completion estimated for December 2020.