Phenomenal take up on FWJK’s latest co development at cost offering known as Obs Court, a student resi development in observatory has resulted in a sell-out to its investor base in just three weeks according to FWJK ‘s Cape Town director, Craig Armstrong.
This R320 million residential complex offers 310 apartments comprising a mix of studio, one and two bed apartments and was sold in stacks of eight apartments to 34 investors at a cost price of R20,250/m² excluding VAT. Armstrong advised that investors are expected to enjoy an annualized return on investment in excess of 40% on re-sales at construction completion in December 2017.
Investec approved the development funding for the Obs Court project on the strength of the offering’s excellent value, the calibre of its investors and FWJK ’s track record, said Brendon Wray of Investec Private Bank. Investec also funded FWJK’s highly successful R230 million Touchstone House office development in Bree Street.
Armstrong advised that Obs Court’s location within Cape Town’s Urban Development Zone offered huge income tax depreciation benefits to those investors intending to hold long for lease purposes which was a big factor in the speed at which the project sold out.
The design of Obs Court by FWJK Architecture has provided a trendy fresh feel and will appeal to students looking for a safe and secure environment. Obs Court will offer features such as Wifi, lots of on-site parking, heated pool, braai facilities, laundry and gym added Armstrong.