January 29, 2004

The investment potential of Cape security estates is widely appreciated by investors from overseas, says Noel Barry, managing director of newly established company Security Estates Agents.

The company specialises in security estate marketing on behalf of landowners and developers and is focusing initially on the Hout Bay valley, an area that, says Barry, is particularly popular with overseas clients.

"The five security estate projects which we are currently marketing have attracted interest from developers from the Middle East, England, Ireland and China, all of whom have indicated that this is their preferred form of residential investment because the returns on security estates are better than any other in the booming Cape residential market.

"It is now clear," said Barry, "that plots in at least three of the five projects with which we are involved will be snapped up by our investor pool without even being advertised for sale to the general public.

"This rush for plots is understandable when you consider that a 10% deposit secures a sub-divided plot, which, once the services are installed, sells at a 20% premium. This represents a 200% return on money-down in six months or 400% per annum." 

Security Estate Agents' service to landowners and developers includes the identification of suitable sites, the control of rezoning applications and other legal matters, the appointment of a professional team and other project managers, help with finalisation of contracts and programming, the raising of ancillary finance at a competitive rate and marketing of the product to investors and finally the end user.

The latest foreign investigation team to visit the company has been from the Hunan Construction Group, whose managing director, Weigou Hou, is also director of the Chenzhou Municipal Government of Hunan in southern China.

He was accompanied by Messrs Yang and Lee, also of the Hunan Group. The visitors were particularly interested in a 1.5 hectare stand between Constantia Nek and Hout Bay.

South Africa, said Barry, had been targeted as a strategic investment area by the People's Republic of China and companies operating in South Africa were selected and approved by the Chinese authorities and usually had access to considerable state funding. - Cape Argus