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Renico Construction has been at the forefront of providing good quality housing to thousands of new home owners and investors in Gauteng over the past seventeen years. We now have even more residential developments planned or in progress and are extending our labours beyond the borders of Gauteng as well!
But problems beset us and we're feeling the cold wind of winter blowing not only on our skins but also on the South African economy, just as it is affecting the economy of Greece.
With a 2.5 basis point hike in interest rates at the end of July it signals an upward trend in interest rates too!
Malfunctioning administrative systems are inhibiting us greatly. Land must now be registered in a developer's name before SDP and building plans can be lodged with Local Councils. Only once these are approved can one make application for NHBRC enrolment on new building work. This would work well if we had a functioning and efficient Deeds Office, but the Johannesburg Deeds Office was without a Registrar for six weeks, and the waiting period for obtaining the Title Deeds of a property after registration is now sitting at seven months or more!
As developers we sell our units based on the fact that they will be ready for occupation within a specific timeframe, and these delays are causing huge problems. Assuming a developer purchases a stand that is already zoned and proclaimed, it is eleven to twelve months before all the paper work for the proposed new development is completed and a further five to six months to complete the development to the point where buyers can take occupation!
The Construction Industry is a huge job creator and the lack lustre approach of those involved in the administrative processes is resulting in fewer and fewer opportunities for those in the labour market to find employment. The demand for housing will also rise as fewer units become available. Who is taking note of the negative impact this has on the market?
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As the demand for rental housing continues to grow, we are seeing a gradual increase in single or fund investors!
The following four projects all fall within this category!
We handed over the Elmer's End in Noordhang, Fourways, with its 193 of our proven and trusted two bed / two bath units, on 30 July 2015. This large complex was completed in a mere six months. All units within the development will be let to tenants.
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We commenced construction on Villa Massimo in Blackheath, Johannesburg, comprising 40 new units on 1 June - all of which will be rented out from 1 December 2015. |
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The re-development of the Krimanshof building in Blackheath commenced early in August. The existing block of flats will be renovated and an additional 26 units constructed. This project will also service the rental market exclusively.
At Crystal Park X67, we are undertaking a project in association with ARIFSA (Old Mutual), which will provide 225 rental homes in the Affordable Housing market. The provision of civil services for this construction has already commenced.
Construction commenced on the Ponders End development in Helderkruin, Roodepoort on 1 July 2015. This development, bordering on the Kloofendal Nature Reserve, has garnered tremendous interest and to date sales have been above expectation with 94 units sold. This unique site was on the drawing board for years. The township establishment process, EIA approval, SDP and building plan approvals, and NHBRC enrolment took 11 years to reach completion! |
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With our spring newsletter Renico Construction will be launching our 150 unit Park Royal development in Wilgeheuwel, Roodepoort. External services are being installed in this new township (Wilgeheuwel Ext 43) at present, and the final township and plan approval phases are now in progress. |
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On the affordable housing front, Renico Construction is well advanced with another 22 homes in Phase 6 of the development in Sharon Park X2. Sales are proving to be above expectation. We have also proceeded with the civil services to Phases 7 and 8 that will result in a further 150 Residential 1 stands coming on to the market. Civil services for these two Phases were completed by the end July and we expect to commence with the construction of these 150 new homes around 1 September 2015. |
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We are still awaiting NHBRC enrolments on the Protea Glen Manor development in Protea Glen - a process that has already taken in excess of four months! Once NHBRC enrolments are to hand we will immediately commence construction on this site - our site foreman is standing by. Fortunately, after a very long wait as well, the NHBRC enrolment for the Chelsea development has at last been received. Construction commenced on these units at the beginning of August. |
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Renico Construction has also has secured the development rights of Riverspray Estate in Vanderbijl Park, as well as those of the Parys Golf & Country Estate in Parys. We will commence in building full title speculative homes on both these Estates shortly. |
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| RANDPARK RIDGE |
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The Eagle Canyon Shopping Centre opened for trading on 23 July 2015, accommodating a Virgin Active Health Club, Super Spar and Tops. We successfully handed over this project 3 months ahead of schedule - an achievement of which Renico Construction, its management team, and the professionals involved are extremely proud, and our tenants delighted! |
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| COSMO CITY |
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At Cosmo City Shopping Centre construction is now in full swing with this convenience centre set to open its doors in March 2016. Pick n Pay is the anchor tenant of this new centre. |
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| LANSERIA & COSMO CITY INDUSTRIAL |
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On the Industrial front Renico Construction secured the sale of a new building for TAGSA in the Lanseria Corporate Estate, as well as one for Visionview in Cosmo City Industrial Estate.
Earthworks on the TAGSA building site commenced on 10 July. Both TAGSA and Visionview are set to take occupation of their newly completed buildings by 1 December 2015.
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| NORTHRIDING |
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The four-unit Northriding Commercial Business Park was completed and handed over during July - all four units will be rented out. |
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| LASER PARK |
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Construction of the Kimbult Industrial Estate, comprising seven warehouses / factories within two blocks situated on Zeiss Road, Laserpark, is also well advanced and set for final rental occupation at the end August 2015. |
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Our mailing list has already topped the 11 000 mark, and we're seeing in the region of 500 new email addresses added to it each month. As subscribers you receive our quarterly newsletters and pre-launch notifications of our new developments, the latter giving you the opportunity to invest in the cream of the units before we launch to the general public!
We urge you to visit our website frequently in your search for property. We update the property sections on a continual basis to ensure that you do not waste time enquiring about property already rented or sold - and to keep you informed of the progress we're making through our “Progress Photos” on each current development should you already have bought one of our units.
Follow us on Twitter or Facebook as well - more information is also available in this way!
We look forward to being of continual service to the property market!
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