The rezoning has already been approved as a mixed-use site of 128ha, equivalent in size to a large suburb. The plans for the site will see the development of some 2,200 homes in addition to businesses, retail, light industrial and community facilities including parks, large public open spaces and a school site. There is also significant space dedicated to preserving the natural environment, incorporating ponds and watercourses.

“We have great confidence in Port Elizabeth. As a result of various macro-economic factors the commercial capital of the Eastern Cape is experiencing steady growth which has led to increased pressure on the availability of housing, especially for the middle income bracket,” says Magnus McDowall, Amdec Cape & Coastal Regional Director.

Rob Wesselo, General Manager – Absa Property Equity Investments, echoes this sentiment: “Our investment in Parsonsvlei is not only in line with Absa’s strategic intent to support property development in South Africa, but also an investment in the economy and growth of Port Elizabeth.  As commercial property finance specialists, Absa would also like to extend its involvement, once development on the sites starts, to include the financing of developers.”

Parsonsvlei, well-located off Old Cape Road which links into the N2 Highway, is being subdivided into development parcels which will contain a variety of residential developments, ranging from ‘starter homes’ upwards, including sectional title and freestanding residential properties. The development will be home to some 10,000 people and house prices are expected to range from R400,000 to R1,000,000

In order to create pleasant surroundings, substantial focus is being applied to urban design and town planning. Pedestrians and cyclists have been considered with dedicated cycle lanes and pathways throughout. This will help to create a cohesive development with usable, people friendly urban spaces. The quality of the urban environment created will continue to be monitored by the developer throughout.

The development consortium is committing significant investment in the installation of bulk services and infrastructure, including roads, sewers, water and electricity. McDowall points out that this investment is instrumental in creating much-needed quality housing and public facilities which, in addition to being a solid asset for the city, will boost the local construction industry and provide numerous employment opportunities. This phased project will take some five years for its complete roll out, with the first phase commencing in January 2009.

The first phase of civil and engineering infrastructure is expected to take between nine and 14 months and construction of the first phase of 830 houses a further nine to 12 months. It is estimated that the first residents will be able to move in to their new homes during the second half of 2010.