Russell Smith, CEO of the Cape Town-based company, says development of the projects – all scheduled for completion during 2011 – is going ahead in spite of the continued tight hold of the major banks on the granting of credit.
“While availability of bank funding is clearly a critical factor, we will resort to alternative lines of funding wherever we may need to,” says Smith.
The developments now going ahead are:
• The R300-million first and second phase of the “Old Match Factory’ – a business park that is evolving from the regeneration and redevelopment of the former Lion Match factory in Observatory – for which Nedbank funding is in place. The project is a joint venture with Equity Estates in Johannesburg. The phase one tenant is in place, with a new 10-year lease over 11 500 sqm, while negotiation with the phase two tenant, for 10 000 sqm, is well under way
• Nettleton Ridge, a R350-million development of three top-end homes in an exclusive security estate below Lion’s Head in Clifton, which is being funded by Standard Bank and Sasfin Capital. Two of the three homes are already sold and construction is under way
• A R250-million redevelopment of the old Epic Oil site in Maitland into a 40 000 sqm multi-use storage facility, which is due to be launched in January 2011. The land is funded by Nedbank, with whom a loan facility for the redevelopment is being finalised, says Smith
• A R300-million joint venture with Warner projects involving the development of a 30-unit gated estate, “Nieuwe Steenberg”, which will be strategically located at the entrance to Steenberg Golf Course
• The R200-million redevelopment of 70 Prestwich Street – the former headquarters of I&J Fishing – from a 6 000 sqm office block into a 9 000 sqm mixed use development comprising retail, parking, offices, and loft apartments with magnificent views over the V&A Waterfront, the City, and Table Mountain.