FINANCE: Nedbank Secures Success Of Affordable Housing Development
Recent Gauteng Business News
Nedbank Corporate Property Finance continues to demonstrate its commitment to the Affordable Housing market and the principles of Government’s integrated housing objectives. The Affordable Housing unit within its Property Finance division has put into place tailored development funding of R55 million for the development and completion of Phase 1 and Phase 2 of a R110 million residential development called Honeydew Grove Ext 7 in Honeydew in Randburg, Johannesburg.
Adjacent to the well-known Eagle Canyon golf estate, Honeydew Grove Ext 7 is situated on Zefanja Avenue in Honeydew between Zeiss and Johan Roads. The development is well located, has easy access to both the N1 and N14 highways and is within walking distance of Laser Park, a light industrial area. It is situated within two kilometres of the neighbourhood shopping centre, and about six kilometres from two regional malls, Northgate Shopping Centre and Clearwater Mall. Wilgeheuwel Clinic and Boskop Primary School are also situated close by.
Given this ideal location, the area is well developed with mainly secured middle to high income sectional title developments. However, none of the existing developments offer entry level units priced at R349 000 or less. Panamo Properties stepped in to address the gap and to develop Honeydew Grove Ext 7 into an affordable sectional title development, with financial backing from Nedbank Corporate Property Finance’s Affordable Housing Development Unit.
In line with the City of Johannesburg’s objective of achieving inclusionary housing, which involves social integration of income levels, Honeydew Grove Ext 7 will feature 290 affordable housing units in three-storey walk-up blocks priced between R150 000 and R495 000.
Phase 1 comprises 15 blocks with 152 units and Phase 2 will comprise 13 blocks with another 138 units. While affordable, the unit specifications are market related and consistent with the surrounding area. In addition to built-in cupboards, ceramic floor tiles, carpets and communication to guardhouse, most of the units also have balconies.
Panamo Properties is owned by Catherina Combrinck and Bob De Reuck of De Reuck and Associates, which is also the design engineer and project manager for the development. Established in 1986, De Reuck and Associates has an impeccable record in residential developments and has been responsible for the development of more than 10 000 units in low cost and affordable housing projects. The professional team also includes Liebesheim Bouers CC, which has been involved in affordable housing projects in Cosmo City and Soweto to more upmarket schemes in the greater Johannesburg area.
Excellent progress has been made in terms of the construction, marketing and sales. The entire external and bulk infrastructure for both Phase 1 and 2 has been installed, and most of the internal services installation and the construction work on the first phase of 152 units has been completed. Marketed by Remax, more than 222 sales with a gross sales value of R82.9 million have already been achieved.
Nedbank Corporate Property Finance stepped in and ensured that its tailored funding approach matches the development requirement to allow Phase 1 to be completed without delay and in keeping with the expectations of the end users who have already signed sale agreements.
Manie Annandale, Head of Nedbank Corporate Property Finance’s Affordable Housing Development Unit, explains: “The developer is well placed to complete Phase1 of the development by the end of March 2011, which is largely due to the continued close relationship with the developer and the responsive nature of the development funding. The development is exceptionally well located and the pricing of the units is extremely competitive for the area. These advantages have been reflected in the pre-sales attained over a short period of time. Not only does the provision of a further loan facility demonstrate Nedbank’s commitment to making a success of continued momentum in the delivery of Affordable Housing stock, it also validates our partnership approach with our clients, which ensures access to flexible and tailor-made financial solutions geared to ensure the success of each individual development project.”
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