Construction and property

Green is cool.

Redefine Properties’ third green bond was oversubscribed when it went to market in August 2023. An amount of R1billion has been allocated across three, five and seven years.

Green buildings are now considered mainstream in the construction industry, and star ratings from Green Building Council South Africa (GBCSA) are expected in commercial, industrial and residential projects. The bond was listed on the JSE in the Sustainability Segment, a further sign that every sector is responding to the climate crisis.

Redefine will use the bond financing to work towards decarbonisation of its portfolio through the reduction of energy consumption by making systems more efficient, collaboration with tenants and solar photovoltaic installations.

The North Wing of 90 Rivonia Road is an example of Redefine property that is four-star rated by the GBCSA. Features include a climateresponsive facade, efficient air-conditioning and intelligent lighting, multi-level planting beds along with some passive design elements.

Township landlords are to be integrated into the real estate sector by means of loans from provincial government that will allow them to invest in their properties and comply with regulations. The aboMastandi scheme has seen 40 loans (from 2 000 applications) approved so far.

On the occasion of the State of the Province Address in February 2023 the provincial government released 482 serviced stands. The South African Housing Infrastructure Fund (SAHIF) has been active in the market of preparing land for development. Noting that some municipalities had been returning their housing budgets unspent, SAHIF focussed on the first stages of development that are often ignored: zoning, approvals and basic infrastructure. SAHIF does that work and then sells it on to developers. It is estimated that early investments into 1 476ha of land will yield approximately 73 800 housing units. SAHIF’s goal is to speed up the delivery of affordable housing.

The R300-million SA SMME Crisis Partnership Fund was launched in the Gauteng township of Tembisa in 2022. A collaboration between the Provincial Government of Gauteng, the Industrial Development Corporation (IDC) and the SA SME Fund intends to make financing available up to R1.5-million to SMMEs and to home owners wanting to upgrade their backyard rental accommodation.

Six intermediaries have been identified to find and fund entrepreneurs and rental properties that need working capital or asset finance. Indlu

Living, one of the six companies, is already funding rental property upgrades, with the expectation that rental income will pay off the loan.

An innovative scheme to build a new township in Gauteng is backed by a retirement fund. The Transport Sector Retirement Fund is building an integrated settlement in the Sedibeng District Municipality south of Johannesburg. The R2.7-billion development includes a shopping centre and will include a mix of housing types.

A large housing project south-east of Tshwane has been designated a Strategic Integrated Project (SIP) which means that all of the external bulk services will be supplied by the Department of Public Works and Infrastructure.

Balwin Properties will develop the residential component of Mooikloof Mega City and the educational, commercial and filling station erven will be sold to a third party. The intention is to build about 16 000 apartments, with the potential to increase to 50 000. The property is on Garsfontein Drive.

Another SIP is Malibongwe Ridge, a mixed-use development that is a joint venture between the City of Johannesburg and the Gauteng Department of Human Settlements. Located next to Cosmos City, housing for 5 500 families is expected to cost R2.55-billion to develop.

By 2030 Gauteng will have two huge new cities, socially diverse, digitally connected and ecologically responsible and sustainable. That’s if the Provincial Government of Gauteng brings to fruition its plans for the west (Lanseria to Hartbeespoort Dam) and in the south, where Vaal River City will stretch from Vereeniging to Sasolburg in the Free State.

In the 25 years since South Africa has been a democracy, more than 1.2-million subsidised houses have been built by government entities in Gauteng. Provincial government has pledged to release 10 000 serviced stands as part of its Rapid Land Release programme

Online Resources

Construction Industry Development Board: www.cidb.org.za

Gauteng Partnership Fund: www.gpf.co.za

Green Building Council SA: www.gbcsa.org.za

Johannesburg Development Agency: www.jda.org.za

Johannesburg Social Housing Company: www.joshco.co.za SA Reit Association: www.sareit.co.za and it intends finishing incomplete housing projects in Alexandra, Evaton, Kliptown, Bekkersdal and Winterveldt.

Bodies such as the National Housing Finance Corporation, Indlu and Umastandi (social capital entrepreneurs) are working together with provincial authorities to find ways to formalise and monetise the township market so that sustainable incomes can be generated and affordable housing and rental stock become more readily available.

The Gauteng Partnership Fund (GPF) has attracted more than R3.5-billion in private sector funding for affordable housing in the province since 2012. The Brickfields housing and rental development in Newton was funded by the GPF and implemented by the Johannesburg Housing Company (JHC) as one of the first inner-city rejuvenation projects. JHC is a leader in converting bad buildings to usable rental space.

The Johannesburg Development Agency (JDA) projects range from the upgrading of Constitution Hill, the Faraday Station precinct, work on the Fashion District and pavements of the inner city, renovation of the Drill Hall and the Newtown upgrade.

Private developer Indluplace Properties has purchased nine large apartment blocks, taking its total buildings in central Johannesburg CBD, Berea and Hillbrow to 23: 33% of the units are bachelor pads and 22% are two-bedroomed flats. ■