The agreement signed by the City of Cape Town and Nedbank in November 2007 to co-operate in the development of affordable housing projects on land owned by the municipality, has been taken a step further.
Initially, three City-owned properties in Wetton, Ottery and Silvertown were allocated for development and now a fourth, in Rugby, is also scheduled for development.
The Rugby property is situated off Koeberg Road on the corner of Max and Zalkin Roads and is well suited to building affordable housing. About 180 bachelor and one bedroom sectional title homes will be built on the site. The basic price for the smaller, 30 square metre bachelor units will be R 145 000 and the one bedroom homes will sell at R 230 000.
Approval from the authorities must be obtained before construction on site can commence and marketing can begin and rezoning applications are being prepared for submission to Council.
Manie Annandale, Head of Affordable Housing Development at Nedbank Corporate Property Finance, said: "This step further illustrates Nedbank's commitment to addressing the housing shortage in South Africa. We are delighted to be awarded a fourth piece of land for the development of affordable housing. We wish to thank the City of Cape Town for affording Nedbank the opportunity to provide much-needed accommodation in the gap/affordable housing market in Cape Town".
"The development of the first three properties allocated to Nedbank is progressing as planned. Environmental assessment studies are underway at the Wetton and Ottery sites and rezoning and subdivision applications are being submitted. Silvertown is awaiting a decision regarding the extent to which the site must undergo an environmental impact assessment", says Councillor Shehaam Sims, the City's Mayoral Committee Member for Housing.
Marketing of the first tract of land is expected to start in May next year and construction is set to start in July 2010.
Wetton is situated in an existing residential area near the intersection with Landsdowne Road and the Ottery Shopping Mall and is accessed from Old Strandfontein Road. It is within walking distance of both the Ottery and Wetton railway stations. The land is expected to accommodate 616 units – 360 of which will be affordable housing units, with the remaining 256 being marketed as open market units. The affordable units cost from R145 000 for a bachelor apartment and R230 000 for a one-bedroom unit. The open market unit prices will range from R450 000 to around R 750 000 and will comprise two and three storey walk-up, sectional title units. A commercial/retail facility will also be developed on the site.
Ottery is two blocks from the Wetton site, two blocks along Old Strandfontein Road. This development comprises 265 open market homes costing from R450 000 to around R750 000. The configuration will be two and three storey walk-up, sectional title units, as well as some single residential duplexes for the more expensive, open market units.
Silvertown is situated in the existing residential area of Silvertown near the Vanguard Road/ Settlersway on and off ramp from the N2. It is opposite the Vygekraal Sports Centre and 3,5km from Rondebosch East, Mowbray and Pinelands. Eight Duplex homes of approximately 75 sqm are envisaged, costing about R750 000.
Notes to editors
About Nedbank Corporate Property Finance – Affordable Housing Division
The Affordable Housing division is a focused affordable housing unit that falls under Nedbank Property Finance, a division of Nedbank Corporate. It focuses on financing Affordable Housing developers in the FSC market with a proven track record. Its aim is to create FSC housing stock, for which Nedbank Retail funds end user home loans. The Affordable Housing unit thereby assists in Nedbank's drive to alleviate the affordable housing shortage in South Africa.
The division's strategy is to make it easier for such developers to develop land that has become increasingly scarce and expensive. This unit also gets involved in Public Private Partnerships where land is made available via local Council and Provincial tender processes.
A division of Nedbank Corporate, the Property Finance division specializes in financing commercial, industrial, retail and residential development property offering loan funding to developers, owners, occupiers and investors. Tailor-made financial solutions include access to available funds, interest only periods, fixed and floating interest rates, flexible repayments and residual value transactions.
The division's approach involves carefully matching the specific needs of the particular client and business with the skills and experience of professional property consultants. Working closely with clients on a hands-on basis, the consultants are able to provide financial solutions that anticipate and fulfill the requirement for growth and expansion.
In broadening relationships with our clients, Nedbank Corporate Property Finance offers a partnership facility, either through joint ventures or minority equity investments. Specifically, this Property Partner division seeks to identify sound commercial, industrial and retail property development projects requiring additional capital.
NO. 229/ 2009
20 APRIL 2009
CITY OF CAPE TOWN
TEL: 021 400 3719
NEDBANK CORPORATE PROPERTY FINANCE
TEL: 011 294 6647 CELL: 082 900 0380