Big Bay project pulls in black developers.

Posted On Monday, 25 November 2002 02:00 Published by
Rate this item
(0 votes)
Joint venture: empowerment firms join up with Investec and Rabcav.

THE development of Big Bay at Bloubergstrand has enticed two major empowerment companies to enter the Cape property development field.


Cyril Ramaphosa's Millenium Consolidated Investments (MCI) and Majo Property Development (Majo), a youth-driven empowerment company represented by Lunga Ncwana, have entered into a joint venture with Investec Bank and Rabcav, a property development group comprising of Rabie Property Projects (Rabie) and the Cavcor Property Group (Cavcor).


They will develop a portion of the Big Bay project.


The joint venture partners said that future property development opportunities would be identified case by case and evaluated on their merits and pursued only if socio-economic benefits and financial returns justify the risk.


While this will be the first foray into the property sector for MCI and Majo, Rabie and Cavcor have a track record extending over 25 years in the property industry in the Western Cape and Investec Bank is an established and experienced financier of property developments.


Rabcav was the lead developer of Westlake, which lies alongside the development of Steenberg Golf Estate, formerly owned by Johnnic. This 100ha site owned by the government was previously occupied by an informal settlement community of 700 families living in squalor.


At the Westlake site, Ramaphosa witnessed how Rabie and Cavcor transformed this property into an award-winning mixed use estate that today houses Reddam School, 180 exclusive residential homes, a neighbourhood shopping centre, 80 000m2 of office and business parks and 700 freestanding homes now individually owned by the previous informal settlement community.


Ramaphosa said Rabie and Cavcor shared his vision for this country.


'Their skills and energy in developing projects like Westlake, Marconi Beam and Big Bay at Bloubergstrand can be harnessed with MCI Properties into a powerful initiative that can make a meaningful impact on the property market to the benefit of all the rich and poor, the public and private sectors.'


Thus far there have been very few major black empowerment players in the property sector but efforts similar to this joint venture highlight Rabcav's commitment to assist the emerging black property entrepreneurs.


Investec Bank, which has an ongoing relationship with Rabie and Cavcor as a development financier and partner in other ventures, recently declared its commitment to empowerment in a document entitled The Investec Entrepreneurial Commitment.


Investec's CEO, Stephen Koseff, was quoted recently on the returns on these empowerment investments as saying: 'At the end of the day they will be in line with our financial investments, but there is also a return in building a new entrepreneurial class'. Inquiries: 021 762 7080.
Publisher: Weekend Argus
Source: Weekend Argus

Please publish modules in offcanvas position.