P OW E R D E V E LO P M E N T S
POWER DEVELOPMENTS
Power Working on
new Concept
for Cape Town Living PRODUCTION: David Napier
Power Developments, the turnkey property development business of the Power Group, is working on a number of exciting projects across a range of market sectors in the residential, commercial and retail industries. One project in particular, a new micro-living apartment complex in Woodstock, Cape Town, is proof of the innovative nature that underpins everything Power Developments is about. 2 / www.enterprise-africa.net
Albert Road, Woodstock
INDUSTRY FOCUS: PROPERTY
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As a leading property developer in the Western Cape, with reach across South Africa, Power Developments is a specialist turnkey property solution provider boasting a history of successful projects stretching back over a number of years. As part of the widely recognised Power Group of companies, founded in 1983, Power Developments can provide a total solution, handling all aspects of a project from conceptual design, development rights acquisition, installation of services, sales and marketing building and construction, and finally handing over the product to end users in the residential, industrial, retail and commercial space. As the biggest supplier of affordable housing in the Western Cape, Power Developments lists among its milestones the first, and largest, integrated residential development in South Africa, Pelican Park, which consists of more than 3200 houses. Other previous successes include the multi-award-winning marina development Thesen Islands in Knysna, Brackenridge Private Residential Estate in Plettenberg Bay, and Featherwood Retirement Estate in Gauteng. Currently, Power Developments is underway with a number of exciting projects which are set to further bolster its impressive portfolio. Senior Development Manager, Nick Ferreira talks to Enterprise Africa about ongoing projects which are keeping the company busy. He says that a new apartment building in Cape Town will be very interesting for a range of different end users.
1 ON ALBERT “It is an apartment building development that we are developing with some partners,” he begins. “It is based in Cape Town in the suburb of Woodstock. The area is going through urban rejuvenation, there is a lot of change happening and there are a number of new buildings coming online thanks to its central location. Our building is one of the first you can get into as you move out of the city.” Formerly the site of old industrial buildings, next to the railway line into Cape Town station, 1A Albert Road will be home to 143 high-spec apartments which provide a perfect living situation for first time buyers or investors looking into the buy-to-let market. “We have purchased a number of parcels of land adjacent to each other and we are developing the project over two phases,” says Ferreira. “We embarked on the first phase, launching the product around 18 months ago. Our concept for this development is what we call micro apartments – quite a common product globally, especially in the urban centres of the UK and USA where space is limited and land is very
// WE EXPECT TO FINALISE IN THE NEXT FOUR MONTHS AT WHICH POINT WE CAN START CONSTRUCTION WHICH WILL TAKE APPROXIMATELY 16-18 MONTHS //
expensive. To make the end product more affordable you have to reduce the size of the unit. These are small units – around 20-25m2 and they are self-contained. They come equipped with everything you need. The building will be a smart building with electronic access control, communal facilities (including a swimming pool), and on the ground floor there will be a retail space. The idea is that you can live in the building and, even though it is a small space, you can move between the communal spaces and access everything you need. It is conveniently located right next to the main bus routes and an Uber stop – it is very convenient for people wanting to live in the city.” A stone’s throw from Cape Town City Hall and the Grand Parade, where Nelson Mandela gave his famous speech on release from prison in 1990, this development will be ideal for young professionals. Its central location is complemented by fantastic design delivered by award-winning architects Louis Karol, and interior design from leading hotel room designer Grant Gillis of Delta Interiors. “The attractiveness of it is that the unit price point is low. Compared to what you can afford in the city of Cape Town, there is very little at this price. It is targeted towards young couples, single professionals, students and investors,” details Ferreira. “It is two buildings – the second building is slightly bigger – and when both are completed the retail areas will combine to offer a generous space. We are also looking at offering communal utility space and office space where board meetings can be held, with access
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POWER DEVELOPMENTS
// OUR CONCEPT FOR THIS DEVELOPMENT IS WHAT WE CALL MICRO APARTMENTS – QUITE A COMMON PRODUCT GLOBALLY // to Wi-Fi, perfect for a small business.” Sales have progressed well and construction of the micro-living apartments looks set to begin by the middle of the year. “We’re about 80% sold out and we are quite close to getting into the ground. We expect to finalise the development approvals in the next few months at which point we can start construction which will take approximately 16-18 months. We are targeting the end of next year for delivery of units to the end users. We will also keep some stock for ourselves which we will manage on a commercial basis or consider selling on to a rental pool fund,” says Ferreira. “80% of the units are around the R1million mark and, with a bond, in a very short space of time it will become more cost-effective to own rather than rent in the city. From that perspective, it’s a very attractive offering. It’s especially attractive for first-time buyers and for parents who want to send children to varsity as it is so centrally located, close to all the university campus sites, the Cape Peninsula University of Technology and the smaller varsity colleges.” THE VINES In a rather different style of project to Albert Road’s micro-living concept, The Vines at Eerste River, between Cape Town and Stellenbosch, is a Power Development site where 84 properties have been put up ranging from 42-65m² with two or three bedrooms to choose from, and prices ranging from R426,000 – R675,000. Launched in 2016, the
project is now almost complete. “We are handing over the final few units right now,” explains Ferreira. “The benefit of the discounted land gets passed on to the end user. We would ordinarily have a certain land value attached to a property and that would impact the selling price. In this case the land value is zero and it makes it more affordable for the end user. The end user benefits as the property is cheaper, the Human Settlements departments fulfils its mandate, and we deliver.” Power Developments has a lot of experience working on projects like this and is well-versed when it comes to partnering with government to provide affordable housing. “The government owns lots of property and, specifically for Human Settlements, their mandate is to
provide affordable housing for the market. Periodically they put parcels of land out to tender where a developer like us can propose a product, a market, a selling price and, if the tender is successful, the government will put the land in for free. The Vines is one example of this, but we have worked like this on a number of similar projects,” says Ferreira. He highlights two other projects in the Western Cape, one on the corner of Old Faure Road and Stratford Avenue in Blue Downs, and on the corner of the R300 and Hindle road. “The Vines is just under 100 houses and we have two similar projects in Cape Town which we are busy with – Belle Vue Estate, which is around 195 units, and Brentwood Meadows, which is around 120 units. Belle Vue is about halfway complete
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INDUSTRY FOCUS: PROPERTY
Bridgewater Apartments
and Brentwood is about to start. We also have a similar developments of around 150-200 units in George which is the same model. “These are very attractive products, providing free standing homes for first time home buyers, with additional subsidies that are available to certain qualifying individuals, and we can facilitate the whole process - we have our agents who know the system very well.” To date, The Power Group has built homes for more than 40,000 families. BRIDGEWATER In 2017, Power Developments announced that it would deliver the Bridgewater Apartments – a block of 54 luxury units nestled within the Sitari Country Estate in Somerset West. The Sitari Country Estate is a multi-awardwinning development which offers
residents the convenience of being on the Old Main Road into Cape Town but the country-feeling of being in the shadow of the Hottentots Holland Mountain range, surrounded by Klein Zeekoevlei Wetland. These generous apartments boast breath-taking views over the estate and are kitted out with to the highest specification. “Bridgewater Apartments is what we call a medium-to-luxury development in the outskirts of Cape Town,” explains Ferreira. “It is inside and existing security estate development that is happening in the area. We have developed a 54-apartment block and we have largely sold them all on the open market. The development is completed and we are just finalising the sale of the last few units which we kept back. “The medium-to-luxury market
is important for us and that includes the apartments we are putting up in Woodstock and a new planned development at Green Point. We’ve done a lot of retail and commercial stuff and sometimes we are just the builder, sometimes we build and sell, sometimes we build and keep – it depends on the project. Our focus evolves as the market evolves.” Across Bridgewater Apartments,
// WE ARE BUSY WITH BELLE VUE ESTATE, WHICH IS AROUND 195 UNITS, AND BRENTWOOD MEADOWS, WHICH IS AROUND 120 UNITS //
Thank you Power Group for turning our ideas into reality Jay de Wet: 072 022 0022 // www.otba.co.za // jay@otba.co.za
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POWER DEVELOPMENTS
the Vines, Albert Road and Belle Vue, you can see the diversity and quality of Power Developments, and why is it recognised as an industry leader. DEVELOPMENT Even in what has been a challenging environment for project-based businesses, and with construction still suffering with a major lack of confidence, Power Developments is consistently reviewing growth and expansion opportunities. Having historically displayed the ability to work cross country, and cross border, Ferreira says that the company will always look at the chance to grow in new geographies. “We are always looking at opportunities to grow and KZN is just one option,” he says. “We’ve also looked at Johannesburg - it depends on the product. We review every opportunity that comes across our table. Some are joint ventures and some are traditional developments – we are always looking at projects in our focus market which is Cape Town and the Western Cape and
we do look at expansion in other areas of the country. We also have an office in Namibia where we are developing property for a project we have been working on for a couple of years. In Johannesburg we have completed some projects in the past but we have not yet been active in KZN.” Fortunately, being part of the wider Power Group allows Power Developments to be flexible in the market and bring different solutions to clients. “We have a number of different business lines and that gives us the opportunity to adapt,” details Ferreira. “We have pipeline products where, if one is struggling, we can put the pressure on another to pull through. We do have a construction division where we can internalise and gain control over how things happen and how fast they happen. We don’t exist to create work for our construction division but there is definite synergy and benefits for both companies if it makes sense – we look at it on a project by project basis.”
This portfolio strength makes for a formidable market presence, and leaves Ferreira confident about what the future holds for Power Developments. “The market has been depressed and we see that in a number of our developments where sales have slowed down. There has been pressure but we are seeing a slight upturn in the last month or so where it looks like the stats will come through showing a lot of interest in our products. We trust that those stats will evolve into sales and that will give the market the opportunity to recover. “We are in a cyclical environment and that is the same for every business – there are ups and down. We are confident that things will be turning around and we have to be positive about the future.”
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Pelican Park
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MAR CH 2019