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Background
- In response to a call for proposal for the development of affordable housing the developers joined forces for the development of the Housing Project in South Africa.
- The development comprises 17 500 various low-cost and affordable rental and sale housing units. The Commercial Phase will be developed throughout the Construction Stage of the Housing Phase.
- The Developers have acquired the development rights over the land, valued at R90 million, which will be contributed as equity.
- The Park City Development will not only benefit the identified town but will also assist the Social Housing Regulatory Authority and the Department of Human Settlements to deliver on their mandate to provide affordable housing to low income earners who would otherwise be excluded from accessing decent accommodation for their families.
- The Developers have been awarded under the Mega Housing Projects Scheme, by the Department of Human Settlement of Gauteng Province, subject to demonstrating financial capacity to finance the Project.
- The Project Development costs are estimated at R6.547 billion.
- The Human Settlement Department and other Government entities will, as per the scheme, provide Grant
- funding of approximately R2 billion over a 3-year roll out period for the purchase/subsidy of various units.
- The Project IRR is in excess of 15%.
- The developers are looking to raise the balance of the funding, of approximately R2.445 billion, for the Project through and from the Mandated Lead Arranger.
The Developers
Developer 1.
Developer 2
Proposed Development
Topology
Housing Typology Year 1 Year 2 Year 3 Year 4 Total
Community Rental Units (CRU) 500 500 - - 1000
Low Cost Subsidy Houses (BNG) 1 200 1 200 600 - 3000
Open Market Rental Units 2 Bed (Affordable) - 800 800 400 2000
Open Market Rental Units 3 Bed (Affordable) - 700 300 600 1600
SHRA Rental Units 2 Bed 500 500 - - 1000
FLISP Sale 2 Bed - - - 500 500
FLISP Sale 3 Bed - - 200 300 500
Open Market Sale Housing 2 Bed - - 500 1500 2000
Open Market Sale Housing 3 Bed - - 1400 - 1400
Serviced Stands 1000 2000 1500 - 4500
TOTAL 3200 5700 5300 3300 17500
Developer 1.
- Formed in 1995, servicing the commercial, industrial and residential markets of South Africa.
- Has over 20 years of experience, a highly skilled management team as well as over 600 staff.
- The largest fully black-owned construction company with CIDB ratings of 9GB and 9CE enabling projects of unlimited value and size to be taken on and built with capability and pride.
Developer 2
- Formed in 2007. Management team has extensive experience in all aspects of the initiation, structuring, implementation and operation of capital investment projects.
- Level 1 BEE contributor and 100% black woman owned.
- Member of SESSA, South African Facilities Management Association.
- Concluded the Purchase of the African Power and Infrastructure Business Unit of WorleyParsons in 2016,
Proposed Development
Topology
Housing Typology Year 1 Year 2 Year 3 Year 4 Total
Community Rental Units (CRU) 500 500 - - 1000
Low Cost Subsidy Houses (BNG) 1 200 1 200 600 - 3000
Open Market Rental Units 2 Bed (Affordable) - 800 800 400 2000
Open Market Rental Units 3 Bed (Affordable) - 700 300 600 1600
SHRA Rental Units 2 Bed 500 500 - - 1000
FLISP Sale 2 Bed - - - 500 500
FLISP Sale 3 Bed - - 200 300 500
Open Market Sale Housing 2 Bed - - 500 1500 2000
Open Market Sale Housing 3 Bed - - 1400 - 1400
Serviced Stands 1000 2000 1500 - 4500
TOTAL 3200 5700 5300 3300 17500
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