Alleyroads, a leading black-owned national scale property developer and landlord focused on affordable residential housing, retail, and industrial property, has received a further R175 million from the International Finance Corporation (IFC) in a second tranche of funding for the construction of affordable rental housing developments at Inkanyezi Village in Katlehong South, John Dube Village in Springs and Meyerton Ridge in Meyerton.
The first tranche of R130 million was disbursed during 2022.
“This second tranche of funding forms part of a three-step payment mechanism in terms of the loan agreement and follows our compliance with strict terms and development milestones. The projects are progressing well in terms of the project programme and this additional funding will enable us to expedite the completion of the developments,” comments Ivan Pretorius, founder of Alleyroads.
The developments aim to address the significant housing gap in Gauteng’s affordable housing market, particularly in the R4 000 to R6 000 per month rental segment, catering to lower-to-middle income households with an average annual salary of about R238 000.
“The R175 million second tranche of funding forms part of a green A-loan investment of R325 million concluded with the IFC in 2022. The total project cost is estimated to be up to R620 million with Alleyroads shareholders funding the balance in the form of equity,” he adds.
As an IFC EDGE Champion, and the first company internationally to receive EDGE Version 3 certification, Alleyroads’ apartments have been designed to meet IFC’s EDGE Advanced green building standards, making them zero carbon ready and among the first residential units in sub-Saharan Africa that will achieve such a high level of resource efficiency.
The developments at Inkanyezi Village in Katlehong South, John Dube Village Phase 1 in Springs and Meyerton Ridge in Meyerton are scheduled for completion by the end of December 2023, with occupation commencing during early 2024. Upon completion, they will offer a combined total of 1 061 affordable units that can accommodate up to 4 244 residents.
Offering two-bedroom and one-bathroom units, averaging 55m², including a balcony, all units include modern kitchens with granite tops, a large lounge area, and built-in cupboards in all bedrooms. The units are tiled, and all bathrooms are equipped with quality, modern sanitary ware and comes standard with a DSTV connection point.
In addition to the above, tenants receive 250 Megabytes (MB) of free Wi-Fi per month, with a special offer to sign up for additional data via a dedicated service provider. The units are also linked to a solar system that provides a monthly saving on utilities of at least 30%. Pre-paid water and electricity meters are standard, enabling tenants to monitor their consumption efficiently.
Electric fencing, 24-hour security, parking bays, and a play park area are also included.
