Khayelitsha to get new CBD

Posted On Thursday, 06 May 2004 02:00 Published by
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Construction of an integrated R450m business and housing project, creating a new central business district (CBD) in Khayelitsha, is expected to start next month.

CAPE TOWN Construction of an integrated R450m business and housing project, creating a new central business district (CBD) in Khayelitsha, is expected to start next month.

The project, the first such large-scale integrated development in a South African township, will add 1500 houses costing between R75000 and R150000 to the area, as well as a 20000m² retail shopping centre, a municipal office block (6000m²) and a service station funded through a public private partnership that includes overseas finance.

Key to the housing development is the link to a housing association with a "rent-to-buy" system, which overcomes the "problematic" area of bond financing. It means that after four years of regular payment, the occupants of homes will click into a situation where they will be able to raise the bond finance to buy their homes.

Wayne van der Vent, director of Futuregrowth and head of development funds, says the model has been tested successfully in King Williams Town, Eastern Cape, and will create a situation where, for the first time in a township, it will unlock residential capital for homes that can be sold on as an asset.

Futuregrowth, the largest private investor fund linked to First National Bank, is the developer of the commercial component. The retail development, expected to cost about R80m, is due to open in June next year.

Long-term funding commitments of up to R300m are being underwritten by Futuregrowth's sister company, Rand Merchant Bank.

Added to this is R100m of government funding, from local, national and provincial sources, that will be spent on infrastructure.

Source: Business Day

Last modified on Thursday, 20 August 2015 15:50

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