Residential
a) Driefontein Residential: This development comprises a 13.2 hectare site, 4 miles south of Johannesburg's main international airport. It is currently undeveloped but should deliver an estimated 35,000 sqm of gross developable area (GDA) after rights have been granted. SAPRO intends to develop a high density residential estate of approximately 500 units targeting the region's fast growing middle income market.
The project is a joint venture in which the Company will hold an 85% stake and a local property developer will hold the remaining 15%. Draft Conditions of Establishment have already been received from the local authorities, and it is expected that the township will be proclaimed in 2008.
b) Kindlewood Nature Estate: This development comprises two adjoining pieces of land with a combined area of 5.3 hectares in the Kindlewood Estate, Umhlanga, north of Durban, KwaZulu Natal. The site, which is currently undeveloped land, is situated adjacent to the prestigious Mount Edgecombe Golf Estate and will be developed into a residential conservation estate featuring natural wetlands aimed at the upper end of the market.
The development is a joint venture with an experienced local residential developer with SAPRO holding a 65% stake. The land already has medium density residential zoning rights in place, and the Company expects to take transfer of the site in the second quarter of 2008 (the seller has experienced delays in servicing the township due to excessive rain in KwaZulu Natal). Building will commence shortly after title to the land is taken, with completion expected within two years.
Marketing of the first phase of the development was successfully launched in Durban in November 2007 and the pre-sales threshold of the lending bank to the project was reached in March 2008, paving the way for the provision of senior debt. Launch of the second phase is scheduled for the second half of 2008.
c) Kyalami Residential Estate: This development comprises an 8.9 hectare site in Kyalami, north of Johannesburg, Gauteng. The site, which is currently undeveloped land, is located within a growing node close to the well known Kyalami Racetrack, and it is intended that it will be developed into a residential complex aimed at middle market buyers.
The development is a joint venture that includes an experienced local residential property developer. SAPRO will hold up to 75% of the equity pending the results of the planning application which will determine the maximum density that can be achieved on the site. The site, title on which was taken in March 2008, is currently zoned as an agricultural holding, but our planning application has already been submitted and we expect that it will receive approval by the third quarter of 2008.
The Company anticipates being on site in the first quarter of 2009 and completing the project within two years.
