http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.31Change: -0.10
R/$ = 11.11Change: -0.04
Au 1222.76 $/ozChange: 5.50
Pt 1335.00 $/ozChange: 3.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Oct 12, 2012

Affordable rental housing programme undertakes construction of first project

Back
Construction|Jeppestown|Johannesburg|Pretoria|Flow|Housing|National Housing Finance Corporation|PROJECT|Projects|Property Development|Rental|Take Off Real Estate|Building|Flow|Property Development|Vinolia Mashiane
Construction||Flow|Housing|PROJECT|Projects|Property Development|Rental||Building|Flow|Property Development|
construction|jeppestown|johannesburg|pretoria|flow-company|housing|national-housing-finance-corporation|project|projects|property-development-company|rental|take-off-real-estate|building|flow-industry-term|property-development|vinolia-mashiane
© Reuse this



The first company funded under the Entrepreneur Empowerment Property Fund (EEPF), an incubator programme designed to promote participation in the affordable rental property market by companies owned by historically disadvantaged individuals, broke ground on its rental housing construction project, in Jeppestown, on the eastern periphery of the inner city of Johannesburg last month.

The EEPF, which is a partnership between the Gauteng Partnership Fund (GPF) and the National Housing Finance Corporation (NHFC), reports that funding has been secured for six projects this year. Construction on the projects, which are at different stages, will mostly start next year.

In total, funding has been secured for 13 projects since the EEPF’s launch in 2010, which will result in about 500 units being constructed, says GPF investment officer Vinolia Mashiane.

The six approved projects for this year are in the areas of Roodepoort, Springs, Benoni, the inner city of Pretoria and two projects in Kempton Park.

Jeppestown Project
The bulk earthworks for a R9.4-million greenfield development in Jeppestown, which broke ground on August 27, includes ground levelling, compaction, and laying the foundation.

Mashiane says if the project, at the corner of Park street and McDonald street, runs according to schedule, it will be completed by April 2013.

The project entails the construction of 32 units – seven studio units of 27 m2 each, 13 one-bedroom units of 30 m2 each and 12 two-bedroom units of 45 m2 each on three consolidated stands, measuring 991.86 m2 in total.

On average, each unit will cost R3 400 a month to rent, says Mashiane.

Through the EEPF, the GPF has assisted property development company Take Off Real Estate, the company that was awarded funding to develop this project, in overcoming some of the barriers that prevent historically disadvantaged individuals-owned companies from entering the affordable housing rental market.

These barriers include capital constraints such as access to funding for small companies. Some financial institutions require companies to contribute 30% to 40% of the ¡total project cost as equity towards rental projects.

The GPF has provided a 40% loan of R3.8-million over a 20-year loan period for the Jeppestown project, while the NHFC has provided the bulk of the funding.

The developer’s contribution, which is dependent on the project feasibility and cash flow, may vary between 2.5% and 10% of the total project cost, says Mashiane.

The programme, which is limited to prospective participants invited yearly on public tender, allows each participant 12 months to secure a project, with a maximum project cost of R15-million.

Any 100% black-owned company with an interest in providing housing for people earning an income of less than R15 000 a month can approach the EEPF for funding. However, companies will only be eligible for the programme if they are a registered legal entity with a valid tax clearance certificate, clear credit records, able to identify a potential project that can yield over 15 affordable housing units in Gauteng and can demonstrate access to unencumbered capital as the sponsor’s equity contribution.

Further, the EEPF will provide mentorship and training programmes aimed at moving the skills level of black economic-empowerment companies from a low skills level to a high skills level where there is improved success in the delivery of rental housing units and less reliance on GPF and other concessionary funding from the State.

Mashiane says other greenfield projects under the EEPF, such as the projects in Roodepoort and Kempton Park are in the process of registering bonds with the deeds office of the Department of Rural Development and Land Reform and obtaining municipal approvals to start construction.

The Pretoria inner city project, which is located at 164 Schoeman street, involves the renovation and reconfiguration of an existing building that currently consists of 23 spacious two-bedroom units.

Once completed, the development will comprise 46 one-bedroom units, says Mashiane.

Edited by: Chanel de Bruyn
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Construction News
Updated 1 hour 35 minutes ago Turkish conglomerate Sabanci Holding plans to bid for some of the assets cement makers Lafarge and Holcim must sell to steer their mega-merger past competition watchdogs, a source with knowledge of the deal told Reuters. Istanbul-based Sabanci, a conglomerate with...
Updated 2 hours 26 minutes ago The Development Bank of Southern Africa (DBSA) and the University of Venda, have signed a R300-million loan agreement for the construction of on-campus student accommodation at the university’s Thohoyandou campus, in Limpopo. With an estimated cost of R448-million,...
Eric Vemer
Updated 6 hours ago The board of construction and engineering group Group Five announced on Tuesday that it had appointed Eric Vemer as the company’s new CEO. Vemer will start work on December 1, taking over from Mike Upton, who had approached the JSE-listed group’s retirement age.
Article contains comments
More
 
 
Latest News
Updated 24 minutes ago The Standard Bank Group has been named one of the world’s greenest banks by Bloomberg Markets, ranked eighteenth out of 20 global finance institutions recognised for their investments in green-energy projects and efforts to reduce their own waste and carbon...
Updated 25 minutes ago The Department of Environmental Affairs (DEA) was considering establishing an air quality index, to make information on the quality of ambient air in South Africa more accessible, DEA national air quality officer Dr Thulie Mdluli said on Tuesday. She noted that the...
Patricia de Lille, PJ Rabie and Dominic Chennells
Updated 42 minutes ago In a boost for renewable energy, the City of Cape Town has signed its first small-scale embedded electricity generation contract with Black River Park Investments, an office park in Observatory.  The 74 000 m2 office park uses large-scale solar power systems to...
More
 
 
Recent Research Reports
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
Real Economy Insight: Road and Rail 2014 (PDF Report)
This six-page brief covers key developments in the road and rail industries over the past 12 months, including details of South Africa’s road and rail network and prospects for both sectors.
 
 
 
 
 
This Week's Magazine
MANUFACTURING CAPABILITY Reliable Transformers designs and manufactures dry-type and oil-filled power and distribution transformers up to 3.5 MVA
While Ekurhuleni-based transformer manufacturer Reliable Transformers currently designs, manufactures and tests its products according to the SANS 780 specifications for distribution transformers and other applicable transformer specifications, it is working towards...
GHAREEB SAAD Kaspersky Lab products contain strong heuristics engines that monitor suspicious file execution to detect attacks
Global endpoint security solutions company Kaspersky Lab has introduced new measures to prevent cyber criminals from accessing sensitive data, alongside its malware-signature and heuristic device analysis detection methods. Threats to mobile devices have increased...
MICHAEL FLETCHER Real-time information available to government when citizens use publicly funded Wi-Fi networks will enable it to communicate with citizens and provide services
To ensure uptake and a positive impact, Wireless Fidelity (Wi-Fi) networks in cities must be provided at schools, community centres and commercial centres to enable citizens and government to access information that will improve access to and delivery of services....
Eco-estate Monaghan Farm, located near Lanseria airport, north-west of Johannesburg, has taken a new approach to modern living and sustainability with its 517 ha development, dedicated to farm living.
Forklift and lift-truck distributor Goscor Lift Hi-Reach launched the Genie SX-180, the tallest self-propelled super boom in Africa, in Johannesburg last month. “As the official distributor of the well-known Genie range of equipment in Southern Africa, we are pleased...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks