The first project, Vermont, consisting of 191 apartments, has now been completed with the entire development having been sold to an investment company for rental stock. These units have been snapped up by tenants and will be fully occupied by June.
Currently under construction are three other developments for the consumer market – Zarina, Avenida and Springfield.
At Zarina, where first transfers are due to start in June, all 164 apartments have been sold with only three of the 16 townhouses remaining to be sold.
Sales are also progressing well at Springfield, a development of 68 freestanding homes, where 42 homes have already been sold.
At Avenida, where the first two phases comprising 120 apartments have so far been launched, close to 70% of the apartments have been sold. The third phase comprising a further 63 units is expected to be launched in the third quarter of this year.
Rabie director, Miguel Rodrigues, said Vermont had lifted the bar in terms of residential development at Burgundy and had set a benchmark for future Rabie developments in the precinct.
“It is really heads and shoulders above anything that has been developed in the area to date and the market response as a result has been phenomenal.”
He said the Rabie/Nedbank joint venture would be rolling out about 2500 residential opportunities in all at Burgundy over the next decade or so according to market demand.
“There is a total of 623 units in the first four projects we are doing with three further projects of around 300 units already on the drawing board.”
He said Rabie’s involvement at Burgundy Estate had already had a profound effect on residential property values.
“Already we have seen some significant capital appreciation taking place and we expect this to continue in line with what has transpired at Century City where investors have enjoyed considerable capital appreciation and rental growth since Rabie got involved in 2004.”
Rodrigues says it is not just the Rabie developments which are benefiting.
“The new development impetus introduced by Rabie in the area has encouraged some of the older developments to renovate and upgrade their developments which is very pleasing as it helps uplift the entire estate for the benefit of all.”
He said Rabie, which has decades of experience in estate management, had got very involved in the Masters Home Association to improve the overall management of the estate.
This, and several other factors, including the rollout of Fibre To The Home (FTTH) through an open access network, are expected to further increase demand for homes in the area.
“We are initially rolling out FTTH to all Rabie developments and will then take it to the gates of all existing schemes and it will then be up to each of them to decide whether they wish to link in.”
He said the growing number of schools in the area was also increasing the attractiveness of Burgundy. A Curro Castle and a Montessori school are in the offing while the existing Riverside College has signed a deal with Nedbank to build a formalized campus and work was expected to start on this shortly.
“And across the road is Richmond where Atterbury has announced a 300 000 square metre industrial park including a 30 000 square metre shopping centre with a gym which is only going to make Burgundy even more desirable.”