Nedbank clinches Irene project deal

Posted On Thursday, 13 December 2007 02:00 Published by
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Nedbank Corporate Property Finance’s Gauteng division has acquired an effective one-third interest in a proposed multibillion-rand mixed-use development in Irene

Nedbank Corporate Property Finance’s Gauteng division has acquired an effective one-third interest in a proposed multibillion-rand mixed-use development in Irene, Tshwane.Gauteng divisional director Brian Roberts said yesterday the bank’s intention was to “get involved in the funding of the development of all the top structures and at the same time share in the continuing profit”.

Roberts said the deal was in line with the bank’s strategy of “getting involved in strategic holdings of land” with its clients as partners.“One of the keys to being successful in the property market is to own land,” he said.In terms of the deal, the Nedbank division acquired a 49% equity stake in Odyssey Developments for an undisclosed amount.

Odyssey Developments in turn holds a 66,5% stake in Irene Land Corporation, which intends to develop 147ha of land in Irene owned by the corporation. The land has been earmarked for building 500000m² to 800000m² of mixed-use developments in the next five to 10 years, at an estimated value of R2,5bn- R5bn.

Roberts said Nedbank’s reason for the acquisition in Odyssey was Odyssey’s 66,5% stake in the Irene Land Corporation.Odyssey’s sole interest is the stake in the corporation. The land on which the development will take place is zoned “premium” land. There is a shortage of available zoned land in the Tshwane area.

“There is an existing shopping centre, the Irene Shopping Centre, in the middle of the proposed development.

“The actual development of the mixed-use precinct has begun,” said Roberts. “We are looking at a five- to seven-year rollout of the development.”

Rolf Frolich and Alex Morrison together own 51% of Odyssey.

“Rolf Frolich and Alex Morrison have been key property clients of Nedbank for some time and we are very excited about the opportunity to realise the potential of this exceptional tract of land in partnership with them,” said Roberts.

The land is located around the Nellmapius Road interchange on the R21 freeway and is flanked by the Route 21 Corporate Park to the northeast, Irene Farm Villages to the west and Irene Shopping Centre to the northwest.

Roberts said the land was also accessible from regional and local roads, with the OR Tambo International Airport about 20 minutes away on the R21. The development site is 2km from the Johannesburg-Pretoria rail line of the Gautrain.The development will include offices, residential, light industrial and retail properties.

Nedbank Corporate Property Finance specialises in financing commercial, industrial, retail and residential development property. It provides loan funding to developers, owners, occupiers and investors.ge

Last modified on Monday, 12 October 2015 17:03

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