MULTI-MILLION RAND PROPERTY INVESTMENTS SHOW INNER-CITY’S FUTURE BRIGHT

On
Wednesday, 21 August 2019, the City of Johannesburg’s Executive Mayor, Cllr
Herman Mashaba, along with the MMC for Economic Development, Cllr Leah Knott;
MMC for Development Planning, Cllr Reuben Masango; and MMC for Environment and
Infrastructure Services, Cllr Nico de Jager joined Johannesburg Property
Company (JPC) MD, Helen Botes at sod-turning ceremonies of the first four of 84
properties earmarked for redevelopment.

The
officials were welcomed by the four awarded developers at their respective
sites –  JM Corporate Real Estate Solutions and Ryden JV in Doornfontein;
Nthwese Developments in Marshalltown; Izicwe Consulting Services in Vrededorp;
and Bayete Capital (Pty) Ltd in Yeoville.

These ground-breaking ceremonies follow a rigorous tender process to secure
successful bids which will advance the City’s aims of not only revitalising the
inner-city but also bringing quality affordable housing to our residents and
students.

Mayor
Mashaba said: “These 84 properties hold an investment value of R22 billion and
are expected to generate 11, 000 direct construction sector jobs, at a time
when the economy is struggling to generate employment for our residents.”

The inner-city revitalisation project is expected to yield approximately 6, 500
units of affordable quality housing with rentals beginning from R900 per month.

The sod-turning ceremonies marked the realisation of Mayor Mashaba’s vision of
turning the inner-city into a construction site, by taking available land
parcels and partnering with the private sector to address the affordable and
student housing challenge that has resulted in a backlog in excess of 300,000
units in Johannesburg. 

He added: “What is particularly exciting for me as the Executive Mayor of
Johannesburg is the realisation of a dream I had at the beginning of my tenure
just under three years ago – the dream of turning the inner-city into a
construction site. We had 154 buildings out on tender – 84 of which have
already been awarded. We have another 70 set to be awarded by the end of
September. It will create over 12,000 jobs during construction, but importantly
housing solutions to address our housing backlog.” 

The Mayor lauded the JPC for its work so far. He also thanked the developers
for taking on the challenge of providing quality affordable accommodation when
many had previously turned their backs on the inner-city, resulting in its
decay.

A prerequisite for all successful bidders was that they begin construction work
within six months of the process. These four developments have committed to
this.

Some
background on the developers of the four sites to be visited are:

• The
  Doornfontein development will be developed by JM and Ryden International
  JV.  There will be 370 affordable housing units built in this mixed-use
  development. The estimated investment value is just over R147 million. This
  development will be completed in 18 to 24 months and create 2,864 jobs over the
  construction phase.
• Samancor
  House in Marshalltown was earmarked for mixed-use purposes and will be
  developed by Nthwese Developments. The will be 128 Housing units and the
  development will also have offices. Nthwese has worked on a number of
  developments in the inner-city for the provincial government. The proposal for
  this development will realise an estimated investment value of just over R76
  million. There will be training of approximately 167 people during the
  development process.
• Izicwe
  will deliver an investment with a value of R17 million and will provide
  training opportunities for 55 historically disadvantaged individuals. The focus
  of this development in Vrededorp is student accommodation, and it is
  anticipated that this development will be completed within a year after
  commencement.
• Bayethe
  Capital (Pty) Ltd is familiar with the inner-city, having developed a number of
  projects in Braamfontein. The projected 265 student units to be built will have
  an estimated investment value nearly R86 million. This project will support
  SMMEs. There will be an adjacent development on the two properties. Adjacaent
  property estimated investment value is approximately R45 million.

The City of Johannesburg is expected to announce the next phase of tender awards soon.https://www.joburg.org.za/media_/Pages/Media/Mayoral%20Newsletter/Mashaba%20on%20Point%20August/Multi-million-Rand-Property-Investments-Show-Inner-City-Has-A-Bright-Future,-says-Mayor-Mashaba.aspx