Property developer Multi Spectrum Property Developments (MSP Develop- ments) reports that construction of civils has started on a new low-cost residen- tial development, the Belladonna Estate, situated in Blue Downs, in Cape Town’s northern suburbs.
The construction of the 20,37-ha estate development, which started in June, will comprise 280 apartments and 460 single- storey, freestanding houses, ranging in size from 30 m² to 60 m².
The company says that affordable housing projects leave little room for public recrea- tional space, landscaping and gardens in efforts to keep costs down, but MSP Devel- opments realised the need to create healthy green environments for residents and will plant over a thousand trees and create expan- sive lawns, as well as add two play areas with benches and play equipment that will form part of a recreational area.
“The greening of Belladonna Estate was included from the start in our original planning,” says MSP Developments MD John Coetzee.
The Belladonna Estate is located near primary and secondary schools and there are various sites for further development in this region of the northern suburbs.
About 15% of the houses and apartments have been sold over the past three months, says MSP Developments group marketing director Claudius Combrinck.
The primary target market of the estate is individuals or joint households earning up to R15 000 a month, he says.
“Providing this type of low-cost housing (funding and development) is key to resolving important issues affecting the majority of South Africans and, in the future, this particular market will comprise the new middle market of South Africa. This makes it impossible for any finance, product and service provider to ignore or neglect this market,” adds Mettle Property Solutions Securitisation (MPSS) property development division head Hendrik Bruinette.
Property finance solutions company MPSS, having approached MSP Developments for the facilitation and development of the land, has provided the estimated R230-million funding needed for the project.
MSP Developments plans to spend R24,2-million on upgrading the infrastructure surrounding Belladonna and its next two developments, Aloe Ridge and Iris Park, and will include all internal civil and elec- trical reticulation, as well as external roads, and sewage, stormwater and water system upgrades, says Combrinck.
“With correct planning, a profitable development without compromising on quality is possible,” he says.
Combrinck believes that the main chal- lenges for the company are reducing any associated bulk civil and electrical costs, and negotiating with the council for the service-level agreement of Belladonna, Aloe Ridge and Iris Park.
MPSS and MSP Developments believe that they are developing value-for-money high-quality homes and that Belladonna Estate will change perceptions of the affordable housing sector.
The development of Aloe Ridge, which will comprise 1 023 units, will start after the Belladonna Estate’s completion in December 2012, and will be followed by the Iris Ridge development, comprising a school and 1 215 units.