As the rental housing market becomes a more feasible option for South Africans, banking services company Nedbank granted a R62.3-million loan facility to property developers Rilamax – which is part of the Realgrowth Group – for the development of affordable rental property in Centurion, Pretoria, construction of which was completed last month.
The high demand for rental property is a result of barriers that still exist in housing finance, which has led to people struggling to get approval for mortgage loans and other forms of financing that will guarantee home ownership.
Specialisation “Our specialisation in affordable housing follows on from our intensive research into the specific housing requirements of the young professional, which indicates 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,” says Realgrowth Group CEO Erika Sutton.
She adds that Realgrowth managed to position itself well in this market sector by offering Midknight Valencia, which is the development project that Nedbank has funded through its affordable housing division.
“The single most important decision that a property developer makes in any endeavour is the choice of financial partner for each project,” Sutton indicates.
Nedbank affordable housing division head Manie Annandale mentions that, as a financier to affordable housing property developers, Nedbank’s mandate is to ensure that, its clients and their consumer needs are serviced and met by consistently providing agile solutions.
“This principle has been applied in the decision to provide financing for Midknight Valencia, a development that has been constructed and smartly designed to respond to the current market’s demands for affordable housing,” he states.
Annandale points out that affordable home ownership is a critical driver of the economy. Owing to this, Nedbank looks forward to good returns from the development of this housing project.
The Midknight Valencia complex comprises 224 rental units, which feature units offering either one bedroom and one bathroom, or two bedrooms and one bathroom, with rentals ranging between R4 800 and R5 800 a month.