The Beaumont, a R250 million 179-unit residential development located on the southern edge of the Claremont central business district
The success of five residential property developments that have been constructed by Rawson Developers in Cape Town’s southern suburbs is an excellent example of developers who have an intuitive feel for what the market is looking for.
The most recent in a string of developments that Nedbank Corporate Property Finance has funded for the Rawson Group is The Beaumont, a R250 million 179-unit residential development located on the southern edge of the Claremont central business district.
“The Beaumont development is a continuation of the very successful working relationship between Nedbank and the Rawson Group, and demonstrates our passion for enabling the vision of our long-term clients,” says Richard Thomas, regional executive at Nedbank Corporate Property Finance, Cape.
As of last month, just 24 units were still available for purchase in the development, which is due to be completed in February 2015. The pattern follows that established by The Beaumont’s sister developments: The Rondebosch; Rondebosch Oaks Phases one and two; and River Song, all of which are located in Rondebosch and have been funded by Nedbank.
Rawson Developers, a division of the Rawson Property Group‚ was founded in 1982 and nominated by the Independent Superbrand Council of South Africa as a “Superbrand”. The Rawson Developers team has built and successfully launched more than 3 000 homes over 20 years across more than 90 different developments and have collaborated with Nedbank Corporate Property Finance on a number of developments.
“When The Beaumont was launched in December 2012, more than 50% of the apartments were sold out within two and a half weeks of the launch. We had not seen a bull run like that since the launch of one of our previous developments in the southern suburbs, Rondebosch Oaks, in 2007,” says Carl Nortje of the Rawson Developers.
Nortje adds that demand has not abated. “By our estimation apartments in The Beaumont have, on average, already appreciated by 15 percent and by the end of 2015 we calculate they would have risen by 20 percent since the launch.”
The Rondebosch Oaks uptake exceeded all expectations when it was launched in February 2007. Phase one of the 150 sectional title unit development was sold out in 72 hours. Phase Two, which offered 106 single bed units, was equally successful with 71 units selling within six days of the launch.
The fourth development that Nedbank funded for Rawson Developers, River Song, was completed in May 2013, five months ahead of schedule. Even with pricing ranging up to R2,15 million, it was speculated that the project would sell quickly and this was the case, with River Song being the first Rawson’s project to sell out prior to completion since the 2007 recession.
Just five kilometres from the centre of Cape Town, Rondebosch is one of the most sought-after residential areas in Cape Town’s southern suburbs and is home to a number of institutions of higher learning, giving it the irresistible vibrancy of a student village. In close proximity to the University of Cape Town, Varsity College, Damelin College and some of Cape Town’s best-known schools, the area attracts an influx of new students and potential tenants annually, a reality that has kept demand and rental yields in the area stable despite shaky economic conditions.
According to a report by Lightstone, an independent real estate analytical agency, average values of sectional scheme properties in Rondebosch in 2004 were R435 000, increasing to a value of R928 000 in 2010. Rental demand now outstrips supply in the area and yields of 7% are easily achieved from the day the first tenant takes occupation. These factors, together with the favourable pricing that the Rawson’s developments offer, have contributed to their significant success over the years.
After the completion of The Beaumont, Rawson Developers have two other developments in the pipeline – the first is an apartment block of 79 units in Main Road, Rondebosch and the other, also in Rondebosch, at the Marist Sports Club, to be known as Rondebosch Oval which will consist of 41 family homes in a secure estate. These are expected to keep the developers active well into late 2015 or early 2016.
“Given the substantial returns that these developments have yielded, coupled with the continued demand for such properties in Cape Town’s southern suburbs, Nedbank is proud to have enabled opportunities for Rawson. The developers are highly invested in the region and have consistently delivered quality residential developments at competitive prices to the market,” concludes Thomas.