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Renico Construction (Pty) Ltd.
EMAIL NEWSLETTER - AUTUMN 2016
Although we have experienced several intermittent falls of good rain over Gauteng during the past couple of months there are farming areas within the province that are still very dry, resulting in the limited planting of crops and vegetables. We have already seen the price of potatoes increase by 50%, if not more!

Now we're into the onset of cooler days and have also had another 0.25% interest rate increase, an increase in petrol levy and an Eskom 9.4% electricity tariff hike. This does not bode well for the consumer who is struggling to afford all the increases. With the increase in the repo rate (interest rate) the effect this will have on the cost of food, transport, rentals and such like will be passed onto the consumers. How much further can average consumers tighten their belts without compromising their standard of living, I wonder?

People in upper income brackets can find ways to protect themselves from rising inflation, but the less fortunate have nowhere to hide. From a property point of view we now clearly see the effect of the interest rate increases and experts are warning us to expect further increases of around 2% over the next 24 months. Times are tough, and getting tougher, with the worst to come in the third and fourth quarters of this year when the effect of the drought trickles through to the cost of meat, poultry, maize and various other items. Only then will one see and experience the real pressures!

Nevertheless we see property prices being very resilient, with well positioned and well priced property still selling quickly. The onset of hard economic times has clearly caused rentals to rise as demand increases. This, coupled to far fewer new developments coming out of the ground, is set to hike property prices and rentals. I foresee that once the economy settles down (which might take a couple of years) one is going to see property prices at a level that is out of the reach of the majority of our people.
The Residential Perspective
During the first quarter of 2016, thanks to the long dry spells we experienced, we have been able to exceed our average expectation of development for this time of the year. Normally we have a very wet February, but this year it was dry. Good progress has been made, and several of our developments are now being handed over.

On 1 May we are handing over the 7 units in the exclusive Oakleigh Estate in Noordheuwel, Mogale City. Oakleigh has been developed for the more mature buyer requiring a smaller garden and wishing to enjoy a lock-up-and-go lifestyle. The last few units are now available in this development.
One of the attractive residences within the estate
The well appointed kitchen in one of the homes
At out 186 unit Ponders End development in Helderkruin we are in the final stages of completion with this site set for occupation 25 April 2016. To date in excess of 160 units have been sold. The last few units available will be ready for occupation on 1 May should you wish to buy now, either to enjoy as your home or as an investment to rent out.
An aerial view of the development adjoining the Kloofendal Nature Reserve
Our Kensington development, in Wilgeheuwel, Roodepoort, which was sold to a single investor, is progressing extremely well with occupation set for 25 May 2016 - if not earlier! The last phase of our Krimanshof development is also well advanced, with the Mill Hill site in Floracliff, Roodepoort - also sold to a single investor - progressing well. All these sites are set for occupation during May and June 2016.

At Riverspray in Vanderbijlpark the construction of the 12 new homes in Phase 1 is well advanced, and their occupation is set for 1 June 2016.
The completed showhouse
You won't feel left out of things working in this kitchen
Interest in our Hadley Wood development in Fairland has been excellent and we have commenced work on the site with the perimeter walling and internal services nearing completion. We anticipate that we will be in a position to start with the construction of the showhouse there in April 2016.
Site clearing at Brandi Ann Estate has also commenced and as soon as we obtain transfer of the site construction will commence.

After many unforeseen and unfortunate delays, we have finally been able to move onto site at our Lucca site in Potchefstroom (Tlokwe). Having completed the perimeter walling and installed all internal services, we have now commenced with the raft foundations on all the units.
AFFORDABLE HOUSING
Our 102 unit Protea Glen Manor development, constructed to serve the rental market, is now completed and ready for occupation by its new tenants. This development, (constructed in low maintenance facebrick, with homes fully tiled, solar geysers and pre-paid electricity), is situated across from the very popular Protea Glen Mall. Being on all major public transport routes as well, commuting to and from work will be so much easier for those living there.
Varying brick finishes add character to the homes
The expansive open plan living room and kitchen
The Commercial And Industrial Perspective
LANSERIA
On 1 February we handed over Erf 642 Lanseria Corporate Estate to TAGSA, and the 25th of February saw Hi-tech Industrial assume occupation of Erf 641 Lanseria Corporate Estate.
Hi Tech Industrial has already taken occupation of Erf 641 Lanseria Corporate Estate
Construction is well advanced on the new Aero Park Estate within Lanseria Corporate Estate. Six warehouses of 1500m² each will be constructed on the estate and will be available for rental from 1 July 2016.
The six new warehouses are taking shape rapidly
COSMO CITY
The new Vision View recording studio, warehouses and offices in Cosmo City Industrial Estate, were completed and handed over to the new owners on 24 February.
The completed building awaiting occupation
Our Cosmo City Shopping Centre was completed and had its grand opening 24 March 2016! All tenants took beneficial occupation of their premises before this and completed their tenant installations prior to this date.
An aerial view of the Cosmo City new shopping centre
Cosmo City Shopping centre opens - already a hive of activity
Already new additions to the Shopping Centre are on the way - a free standing drive-thru fast food outlet and a filling station!

We have secured a lease for a free standing Chicken Express Restaurant and the building works for the new restaurant and drive-thru have already commenced. The business is set to open on 25 May 2016.

We are also awaiting final approval on a TOTAL Petrol Station. As soon as this is received we will immediately commence with its construction!
KLIPRIVIER
On 1 April we commenced with site works at Erf 40 Kliprivier Business Park. The building is being custom built for Flow Safe Equipment who will rent the building with an option to buy it during the lease period.

Due to limited availability of prime industrial land within secure estates, we have seen an increased demand for warehouses with offices here and now have various buildings for other sites within the Kliprivier Business Park on the drawing board.
Stay In Touch!
Renico is continually moving forward and developing property in the residential, commercial and industrial sectors!

The news and information we disperse - both on the website and through our quarterly newsletter and pre-launch notifications of new developments - appears to be valued by an ever increasing number of people. Our mailing list has now exceeded 16000 active subscribers!

If you have not already done so, join our mailing list by subscribing to it on our website. This will afford you 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 which means that you will not waste time enquiring about property already rented or sold. With our current developments we regularly add "Progress Photos" as well that enable you to keep track of how your chosen property is moving ahead.

You can also follow us on Twitter or Facebook where we regularly add useful information for anyone interested in the property market in general - and Renico in particular!
Regards
RENICO Construction (Pty) Ltd
Tel 011 794 1177
Fax 011 794 1159
Email info@renicoconstruction.co.za
WWW.RENICOCONSTRUCTION.CO.ZA
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