To improve access to affordable, sustainable residential housing in South Africa, World Bank Group member the International Finance Corporation (IFC) has announced an investment to support South African residential property developer Alleyroads to build over 1 000 rental apartment units in the Johannesburg area.
The IFC’s R325-million loan to Alleyroads will help the company finance construction of the apartments, which are aimed at lower- to middle-income households with an average yearly salary of about R238 000.
The apartments will comprise two bedrooms with an average size of 62 m², and will be built near hospitals, schools and markets and will provide green spaces and play areas for children.
The apartments are aimed at reducing the housing gap in Johannesburg’s affordable housing market.
The project also aims to support economic activity by creating 860 jobs during the construction phase, and 45 jobs during the operating phase. Project completion is scheduled for 2023.
“The group is extremely thankful to the IFC for having the confidence in our ability to deliver these much-needed housing units to this sector of the residential market. The team is ready to roll up their sleeves and ensure the timely delivery of excellent quality units,” says Alleyroads Group MD Ivan Pretorius.
The apartments will be designed to meet IFC’s EDGE Advanced green building standards, which makes them zero-carbon ready and among the first residential units to achieve such a high resource efficiency in sub-Saharan Africa.
Alleyroads will install on-site solar panels to supply about 30% of the development’s energy needs.
Alleyroads is a locally owned Level 2 black economic empowerment company.
The IFC says it is committed to supporting the government of South Africa’s economic transformation agenda and increasing the economic participation of historically disadvantaged citizens.
As part of its support to South Africa’s housing market, the IFC is working with partners in the country to improve access to affordable housing and student accommodation.