http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.22Change: -0.23
R/$ = 11.16Change: -0.09
Au 1240.10 $/ozChange: -4.17
Pt 1243.50 $/ozChange: -18.70
 
 
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 Materials and Equipment News
Construction products specialist Verni’s Betocrete C-16, an organic, liquid concrete admixture for crystalline waterproofing unlike others, prevents the formation of lumps, says Verni director Jenna-Lee Backos. Beyond its waterproofing properties, Betocrete C-16...
BE Lite Technologies is involved in the manufacturing and distribution of light-emitting diode (LED) lights. It also employs a dynamic engineer who is able to develop lights to fit to customers’ demands. It currently provides a number of products to the mining...
South African cement manufacturer AfriSam has been developing composite technology cements since 2000 to reduce the carbon-intensive Portland clinker content of cement.  As a result, when the National Building Regulations published its green-building requirements,...
More
 
 
Latest News
The Cape Town International Convention Centre (CTICC) has outperformed its targets over the past financial year and contributed R3.1-billion to the gross domestic product in the 2013/14 financial year. CTICC CEO Julie-May Ellingson said the convention centre had been...
Public Enterprises Minister Lynne Brown
Public Enterprises Minister Lynne Brown has released details of the remuneration of the chairpersons and nonexecutive directors of the various State-owned company boards falling under her Ministry. The remuneration figures, which are attached, are based on figures...
Installed wind power capacity could swell by 530% to 2,000 gigawatts (GW) by 2030, supplying up to 19% of global electricity, a report from a trade association and Greenpeace said on Tuesday. It said installed wind energy capacity totalled 318 GW at the end of last...
More
 
 
Recent Research Reports
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
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.
 
 
 
 
 
This Week's Magazine
The broad-based black economic-empowerment (BBBEE) alignment process in the con-struction sector has begun, dur-ing which the sector codes of the Construction Sector Charter Council (CSCC) will be aligned with the revised Codes of Good Practice (CoGP), which come...
It is second time lucky for Toby Venter. Ten years ago he negotiated to buy the Kyalami racetrack, but “the deal did not materialise”.
Environmental solutions company I-Cat started construction work on its R22-million, 1 949 m2 environmentally sustainable office and warehouse facility, commissioned by I-CAT Environmental Solutions, at a launch event in October. The new sustainable I-CAT campus,...
IAN EVANS AirWatch file synchronisation and sharing system was initially designed for a large airline company
Effective file synchronisation and sharing across an organisation’s structures can provide the basis for robust mobile-device and document management while maintaining proper backup, version control and content distribution. These are the lessons learned by complex...
Hotel group Carlson Rezidor currently holds the largest hotel pipeline in Africa with 30 hotels and 6 300 rooms under development. The hotel group develops and operates Radisson Blu in the upper upscale segment and Park Inn by Radisson in the mid-market segment. With...
 
 
 
 
 
 
 
 
 
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