Mixed use
a) African Renaissance: This development comprises a 146.6 hectare residential development, with a retail component, in a rapidly growing area east of Pretoria. Upon completion, the site, of which the majority is undeveloped vacant land, is expected to yield an estimated 252,920 sqm of GDA after planning has been obtained.
The development is a joint venture with three individuals, one of whom is a local real estate project manager, one a building contractor and the other a quantity surveyor, who secured the opportunity and conceptualised the development plan over the last two years. SAPRO has a 65% interest in the development vehicle. The joint venture partners have applied for planning to build approximately 3,200 residential units (apartments and freehold stands) with a retail and commercial centre on the site. The planning application process is on track, with retail and commercial planning granted in the first quarter of 2008. SAPRO expects full planning to be granted in the second quarter of 2008.
The east of Pretoria has recently enjoyed significant growth, and this is evident in the 129% uplift in the land value post acquisition. It is expected that building will commence in 2009 and that the total length of the build-out will be 7 years.
b) Longmeadow: This development is a significant strategic investment which comprises a 15.6 hectare, highly prominent, mixed use site (commercial, residential and retail) in Fourways, Johannesburg. The site, the majority of which is undeveloped vacant land, together with a number of small commercial structures, should yield an estimated 132,000m2 of net lettable area (NLA) after rights have been granted. It is situated approximately 5 miles to the north of Johannesburg's Sandton Central Business District in the Fourways node.
The development is a joint venture with three partners comprising a Johannesburg listed property company and a local contractor (both of whom SAPRO has joint ventured with in previous transactions) and a trust representing the vendor of the land (which will remain as a 27.5% shareholder in the joint venture). SAPRO has a 49.2% interest in the development vehicle.
The joint venture partners plan to apply for rights to build high density residential apartments, commercial office space, hotels, and a niche retail component on the site. Major hotel operators are currently being approached with a view to building a hotel and commercial component in the first phase of the project where planning rights are expected by the third quarter of 2008. Vacant land in the Fourways node is scarce which has contributed to the uplift in value (31%) that SAPRO has enjoyed since entering this joint venture. It is expected that building will commence on the first phase by the third quarter of 2008 and that the build-out period for the entire development will be five years.
c) Lenasia: This development comprises a 12.95 hectare prominent mixed use site (commercial and retail) in Lenasia, Johannesburg. The site, the majority of which is undeveloped vacant land, together with a commercial structure on part of the site, should yield an estimated 51,600m2 of NLA after rights have been granted. It is situated immediately south of Soweto (which is south west of Johannesburg). The site is opposite a newly developed regional shopping mall, and is directly alongside a major commuting route into Johannesburg from Lenasia, providing excellent visibility.
SAPRO plans to apply for rights to build a mixed use retail and commercial development. Conceptual architects have been retained as a first step in planning the development, and agreement has been reached with two strategic partners to joint venture on the development. It is expected that building will commence in early 2009 and that the build-out period will be three years.
d) Emberton Development: This development comprises a 16.5 hectare prominent mixed use site in Hillcrest, approximately 15 km west of Durban. The site, an existing golf driving range, is currently zoned for agricultural use. It is situated directly adjacent to the main M13 highway and commuter route into Durban from the west, providing excellent visibility and exposure.
SAPRO is in negotiations with an experienced local contractor who it is proposed would acquire a minority stake in the development. The development will comprise an upmarket mixed-use secure estate, with commercial and retail components. It is estimated the project will require a two year township application process to allow SAPRO to commence construction in early 2010.
