Understanding the increasing need for new affordable housing stock in South Africa, Nedbank has announced financing facilities of R120m to the Valumax Group for new housing projects in Gauteng.
Manie Annandale, Head: Nedbank Affordable Housing Development Finance comments, “Over one million people seek affordable (rental and purchase) and social housing annually, but only around 25 000 new units become available each year, clearly illustrating that while demand is very high, availability of suitably well located housing is far from sufficient.”
The first development, namely Riverside View Ext 28, is a fully integrated housing development located directly north of Steyn City and west of William Nicol Drive (K46) within one of the fastest growing develops nodes in Johannesburg and which is earmarked to become the most strategic development nodes in Gauteng. The development will provide a good mix of private public amenities, such parks and schools. The second project, Clayville Ext 45, is located in Tembisa, directly to the north of Kaalfontein Ext 22 and west of the K111 Provincial Road, within the Ekurhuleni Metropolitan Municipality area of jurisdiction. “We are heartened by the number of people in the lower income ranges who are set to benefit from these housing developments,” says Annandale.
“More than 9 000 residential stands will be built inclusive of both developments. Riverside View Ext 28 will provide an estimated 2 166 single residential GAP units to be developed in six phases over the next five years which Nedbank is funding. However, the development on completion will yield 5,754 residential units, comprising of single residential GAP, high density walk-up subsidy (RDP) houses and high density walk-up social housing rental units,” says Rocco De Kock, Director of the Valumax Group.
“Clayville Extension 45 will provide a total of 3 222 residential units of which 1 134 will be single residential GAP units, 398 multi-storey social housing rental units and 1960 multi-storey fully subsidised units. The social and subsidy homes are in partnership with the Gauteng Department of Human Settlements, therefore meeting the objective of providing fully integrated housing,” adds De Kock.
The areas have been earmarked for further development due to the significant demand for property from the emerging market, which consists of middle class families. These homes will be targeted at couples and individuals with a joint gross income ranging from R14 000 to R22 000 pm.
The installation of civil services in Phase 1 of Riverside View Ext 28 has commenced, and it is estimated that construction will be completed in October 2014, with construction of the first 430 GAP units to commence in January 2015. The anticipated house range will include a 45m² two bedroom, up to a 65m² three bedroom unit.
The development at Clayville Ext 45 will offer a 45m² two bedroom unit from R320, 600 (Incl. VAT) and the house range will also include a 52m² and 56m² three bedroom unit.
“Nedbank’s commitment to help accelerate housing delivery sees the bank as funding partner with credible developers such as Valumax, to ensure quality affordable homes,” continues Annandale.
“Previous development funding facilities executed to Valumax include R63m for an affordable housing development in Soshanguve, a R13m facility to finance the development of 192 residential 1 units in Riverlea Ext 3 and a R15m facility for the installation of services in Allandale View, Midrand,” concludes Annandale.