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With the arrival of Spring we enjoy long warm sunny days filled with laughter, pool parties, and as yet, no rain, so construction can continue without interruptions. The hype of the Rugby World Cup is now behind us and the defeat of the Springboks by Japan made the team - and indeed the whole nation - come to the sudden realisation that we are not bullet proof!
Unfortunately our economy isn't bullet proof either and with the entire world under severe pressure we are all finding that we have less disposable income. Everything, from wages to the price of basic necessities is increasing on almost a daily basis. However, parking lots at all our Regional Shopping Centres are full at the weekend, while more and even larger Shopping Centres are being developed (some the biggest ever seen in the country), forcing the question "Where is the money going to come from to sustain all of this?"
The successful listing of Balwin Construction on the Johannesburg Stock Exchange indicates that there is still an appetite for an asset class set in brick and mortar! At Renico Construction we have been fortunate in experiencing a continued demand for housing as a primary residence, and to find an increased demand for property as an investment vehicle - investors and buyers keep coming back for more!
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The Residential Perspective
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We are currently very busy with various large and small developments around Johannesburg. Of late there has been a higher demand from potential home owners, but we have also seen a good demand from larger investors wanting to buy an entire complex rather than single units. I foresee that the potential of good returns on residential property will drive the property market for some time to come.
Our 184 unit development Ponders End in Helderkuin is now almost 70% sold out! Construction work on site is progressing very well - possibly even ahead of schedule.
We have also launched our 150 unit Park Royal development in Wilgeheuwel, and as all external services are now nearing completion we are scheduled to commence with site works and the installation of internal services there from 1 November 2015. Situated as it is, right next to the new Curro private school, it has been very popular with home owners and single investors and at this time we are nearly 30% sold out.
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We are launching a couple of smaller and slightly more exclusive developments this month. The first is the Oakleigh development in Noordheuwel, Krugersdorp. This seven unit development is designed for the family that enjoys a smaller garden and a lock-up-and-go lifestyle.
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Kensington, in Mozart Street, Honeydew Ridge, boasting only 13 of the favoured 2 Bed/2 Bath and 3 Bed/2 bath floor plans, is the second of these smaller developments to be launched this month and will come under construction on 1 December 2015. Occupation of these units is scheduled for 1 May 2016.
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The development - or re-development - of the two sites in Blackheath, both for a private investor who plans to lease all the units, are also well on track.
The first site is Villa Massimo where construction is well advanced and the occupation date for the 40 unit development is set for 1 December 2015.
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Construction is continuing at a brisk pace at Villa Massimo
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At the second of these developments for a private investor, Krimanshof, the renovation of the existing 24 units is progressing well and we expect to commence with the construction of the additional 24 new units by mid November 2015. The 24 units in this second phase will be ready for occupation on 1 May 2016.
Thanks to the close proximity of Blackheath to all amenities, the demand for rental units there is well above average.
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New car ports, paving and walling installed for the renovated Krimanshof apartments.
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A modernised kitchen in one of the units of the spacious "old block"
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Having secured 187 individual erven in the developed Riverspray Lifestyle Estate in Vanderbijlpark, as well as 134 erven in the Parys Golf and Country Estate, we have commenced with the construction of the show houses on both. The demand for already completed, or nearly completed homes in established and secure estates is excellent, and we see an even bigger drive towards estate living in the future with the crime statistics painting a gloomy picture for single house living.
The Riverspray newsletter, sent to homeowners in the area every month, even expressed excitement at seeing our arrival on site!
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Foundations being laid for the Riverspray Show house
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An extract from the September Riverspray Newsletter!
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The show house takes shape in the Parys Golf and Country Estate
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AFFORDABLE HOUSING
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In the affordable housing space we are on site with various developments. The demand in this market is improving, but the pressure on the affordability of households is a worrying factor. The necessity of property ownership in this market segment has been reported on extensively in the media. However, I see a great deal of opportunity in the current affordable housing market with excellent returns on rental property and home ownership!
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We are 75% sold out at our 50 unit Chelsea development in Dawnpark X40, and will be launching the Chessington site in November to cater for the excellent demand in this area.
Chelsea - completing the final stages before the new owners take occupation
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At Sharon Park Lifestyle Estate X2 we have just completed another 21 new homes that are currently being placed on the market. With the civil services for Phases 7 and 8 complete, and the electrical reticulation for these phases being undertaken over the next six weeks, we will be in a position to launch a further 134 new homes in the area in January 2016.
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New homes of individual designs ready for occupation in Sharon Park
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Construction of the 102 unit Protea Glen Manor development in Protea Glen has also commenced. The demand for houses in the larger Protea Glen area is excellent, and as we launch this new site I believe sales will be brisk! Currently we are busy completing the 4 show houses while all the raft-type plinths for the other units to be constructed in the development are already completed.
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The Commercial And Industrial Perspective
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COSMO CITY
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At our Cosmo City Shopping Centre development we are well advanced with construction and beneficial occupation, which will enable tenants to commence with their tenant installations, is set for 1 December! It is anticipated that the centre will be open for business on 26 February 2016. Not only have Pick n Pay, Capitec Bank, PEP, PEP Cell and various others signed leases but we can now boast that 85% of this new Shopping Centre will be occupied by Nationals!
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Construction work at Cosmo City viewed from the air!
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An artist's impression of Cosmo City Shopping Centre
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The new Vision View building on Erf 15636, Cosmo Industrial Estate, is also progressing very well with beneficial occupation set for 28 February 2016.
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The Vision View development well on track for occupation at the end of February 2016
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LANSERIA
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On the Industrial front, we have completed the construction of Media Connection's new premises on Erf 661 Lanseria. Hand- over is planned for 1 November 2015.
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Media Connection's new premises - ready for occupation!
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At Erven 641 and 642, Lanseria, construction of the buildings to TAGSA's specifications is progressing very well. 642 is set for beneficial occupation on 11 December 2015; 641 will be completed in the New Year.
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Construction work progresses on the TAGSA buildings that will occupy two adjacent stands
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LASER PARK
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Renico Construction is also handing over the next phase of the Kimbult Industrial Estate in Zeiss St, Laserpark on 1 November. This 12,000m² warehouse development is 90% let at this time!
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Kimbult Industrial Estate - complete and already partially occupied!
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WELTERVREDEN PARK
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Construction of the small Kroton Office Park development, offering 3 separate office suites, is moving ahead well. Very conveniently situated just off Hendrik Potgieter Road, with easy access to the N1, interest in the building has been extremely promising. Our anticipated completion date is 25 March 2016.
The roofing slab going into place at the Kroton Office Park development
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The news and information we disperse - both on the website and through our quarterly newsletter and pre-launch notifications - appears to be valued by an ever increasing number of people. Our mailing list has now exceeded 14000 active subscribers! All receive our quarterly newsletters and the pre-launch notifications of our new developments, the latter affording them the opportunity of investing in the cream of the units in any development before we launch them to the general public!
We update the property sections on our website on a continual basis to ensure that you do not waste time enquiring about property already rented or sold. Once you've invested in one of our developments, a regular check on the "Progress Photos" of that development will enable you to watch it move towards its completion - and your ability to lease it or move in!
You can also follow us on Twitter or Facebook where we continue to serve the property market.
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