Nedbank backs inner city development

Nedbank backs inner city development

Nedbank Corporate Property Finance has again thrown its weight behind urban renewal and the revitalisation of the inner city by backing another development in the CBD of Johannesburg, the powerhouse of Africa.

In a R41 million finance deal, Nedbank has backed the redevelopment of the existing nine-storey building at 16 Frederick Street in Marshalltown into a modern residential apartment building. Once completed, the property will boast a total GLA of 4 503m2, consisting of 138 residential units, including 68 studio units, 48 one-bedroom units, 17 two-bedroom units and five duplexes, as well as 300m2 of retail space on the ground floor and 36 parking bays in the basement.

A sales agreement has already been concluded with Diluculo Investments (Pty) Ltd for the purchase of the building based on the rental return calculation, on completion of the refurbishment. The deal forms part of Diluculo’s long-term strategy to acquire residential units specifically in the affordable housing rental market.

The development of 16 Frederick Street is being undertaken by Lemay Properties (Pty) Ltd, which fulfils the role of developer, and Lemay Construction (Pty) Ltd as the main turnkey contractor.

This is the second finance partnership Nedbank Corporate Property Finance has entered into with the Lemay Group, reaffirming Nedbank Corporate Property Finance’s approach of working closely with clients to provide financial solutions that anticipate and fulfil the requirement for growth and expansion. Last year, Nedbank Corporate Property Finance provided finance for the R100 million redevelopment of an office building situated at 29 Kerk Street in the Johannesburg CBD, also for sale to Diluculo on completion of the refurbishment, which was completed in an impressive five month contract period without sacrificing quality.

“Nedbank Corporate Property Finance is pleased to participate in the exciting urban renewal taking place in inner city Johannesburg, the powerhouse of Africa,” says Ken Reynolds, Nedbank Corporate Property Finance divisional executive for Gauteng. “The nine-storey building is well-located in the heart of the CBD, on the corner of Frederick and Sauer Streets, directly opposite the Standard Bank superblock. It offers easy and convenient accessibility to various transportation nodes, including the Metro Taxi rank and Ghandi Square Bus Terminal.

The project falls within the Urban Development Zone of the Johannesburg CBD, the focus point of the inner city development programme aimed at converting old, derelict office buildings into good quality residential developments. The surrounding buildings are in impeccable condition, and this building is, in fact, the only one available in this node for a full refurbishment for an ‘A’ grade tenant. Demand for residential accommodation in the area is strong in light of the ongoing shift of young professionals from outlying regions into the CBD to benefit from living close to work, educational institutions, transport and amenities. All these factors ensure that this is yet another successful inner city project backed by Nedbank Corporate Property Finance,” concludes Reynolds.

Lemay Construction was established in 2009 to initiate the shareholders’ own opportunities in property development as well as to source construction work through the tender market. Lemay Properties was established shortly after to complement the construction division with the sourcing of development opportunities and the management of acquisitions and properties.

Although recently established, the directors and management team at Lemay have a combined experience exceeding 60 years in the construction and property development industry, specifically in urban renewal projects.

In addition to Lemay acting as project managers, quantity surveyors, main contractors and developers, the professional team for this development includes Interspace Architects; Lidwala Consulting Engineers; Stander Associates acting as the structural engineers and Bergman Fisher Associates (BFA) as the electrical engineers.


Denny Crane

Denny Crane
It's not me ... yet. Denny Crane from the TV series Boston Legal. Click on picture if you're not sure who he is!