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November 2015
Housing
R
ecent studies suggest that
while the demand for afford-
able housing is on the rise,
affordability remains a barrier for
millions of South Africans in this
segment, resulting in renting increas-
ingly becoming a more feasible op-
tion than buying.
According to the Centre for
Affordable Housing South Africa,
developers report that for every ten
buyers they present to lenders for
mortgage finance, two are declined
for adverse credit track records and
five are declined due to affordability
constraints. As a result, only three of
every 10 applications submitted are
approved, making rentals an alter-
nate option.
In recognition of this increased
demand, the Nedbank Affordable
Housing division provided Rilamax,
part of theRealgrowthGroup, funding
for its ‘Midnight Valencia’ affordable
housing rental development.
“The single most important de-
cision that a property developer
makes in any endeavour, is the
choice of financial partner for each
project”, says Erika Sutton, CEOof the
Realgrowth Group.
“At Realgrowth, our brand promise
seamlessly aligns with the Nedbank
culture of ‘making things happen’.
We believe in the integrity of the
Nedbank brand, and decided to take
handswith themfor the development
of ‘Midnight Valencia’. Our specialisa-
tion in affordable housing follows on
from our intensive research into the
Rental market continues
to perform
Nedbank Corporate and Investment Banking Affordable Housing
division has granted a R62,3 million loan towards a new affordable
housing development for rental stock in Centurion
specific housing requirements of the
young professional and indicated
to us that this unique demographic
group prefers spacious living units
that are safe, easily accessible from
main amenities and routes, with the
popular ‘lock-up-and-go’ feature that
consistently increases in demand.
The company has managed to posi-
tion itself well in this unique market
sector by offering stylish, yet afford-
able living space that caters for the
young professional generation as
they commence their ascent up the
corporate ladder. And also for those
that want to scale down due to the
current economic crunch.”
Located at 245 Basden Avenue,
Lyttelton inCenturionand comprising
of 224 rental units, these apartments
are available for rental purposes and
feature one bed and one bath as well
as two bed and one bath units, with
rentals ranging between R4 800 to
R5 800 per month.
Midnight Valencia comprises of
4-storey walk-up residential blocks, a
design feature that is already gaining
popularity within affordable rentals.
Densification of the land available
ensures cost efficient construction.
It is also located in a prime position
where rentals in the area are in high
demand as many individuals are
employed in the vicinity as teachers,
nurses, policemen and government
employees.
“As a financier to affordable hous-
ing property developers, one of our
mandates is to ensure that our cli-
ents and their consumer needs are
serviced andmet by consistently pro-
viding agile solutions. This principle
has been applied in the decision to
provide financing for Midnight Va-
lencia, a development that has been
constructed and smartly designed
to respond to the current market de-
mands for affordable housing,” says
Manie Annandale, Head of Affordable
Housing at Nedbank Corporate and
Investment Banking.
Rilamax is 100% owned by Real-
growth Developments and Midnight
Valencia is the first development by
the newly established entity.
Annandale says: “Affordable home
ownership is a critical driver of the
economy and as such, we are proud
to be associated with this property
development. We also look forward
to good returns for the development -
not only in socially responsible terms
but also in the economic sense with
local government earmarking Cen-
turion ‘African Gateway’, as one SA’s
largest public-private partnership
developments, in the near future.”
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