Luxury property group Amdec to develop affordable housing in Cape Town
The developer of Johannesburg’s Melrose Arch says it will develop affordable housing in the southern suburb of Ottery to give back to the city
Amdec, the developer of high-end properties, has announced an affordable housing scheme in Cape Town. The group will develop Golden Grove Estate in Ottery at a cost of R500m.
“SA is suffering a severe backlog in the provision of affordable housing, especially for lower income-earners. In the Western Cape alone, the housing backlog currently exceeds half a million, with more than 300,000 of these in the city of Cape Town,” Amdec CEO James Wilson said.
“The government is challenged [in its capacity] to meet the need for affordable housing delivery, and so private property developers will need to step into the breach to deliver affordable housing projects,” he said.
As a result, Amdec will develop Golden Grove Estate on land that previously housed a poultry farm.
The 11ha site will accommodate 1,000 affordable residential apartments, along with a convenience retail centre, communal gardens, children’s playgrounds, a creche and daycare facilities, five-a-side soccer pitches, basketball courts, and a communal recreational clubhouse for all of the residents.
Amdec has become known for developing high-end, multi-use properties such as Melrose Arch, and the recently announced Harbour Arch precinct in Cape Town. Amdec now wants to develop at least one affordable residential unit for each luxury unit it develops, Wilson said.
“Affordable housing is a critical element of our mix, so we will seek to develop more affordable housing projects off the back of our more commercially successful developments.”
Golden Grove Estate will largely cater for rental tenants but some investors might buy units for future rentals.
“Affordable housing developments such as Golden Grove Estate will no doubt have an immediate material impact on the lives of 1,000 families currently without quality homes in Cape Town,” he said. “We will commence in November 2020 and roll out in phases. The development will be completed within a two-year timeframe, employing more than 2,000 people during that period.”
This affordable housing development follows on from a project Amdec completed in Johannesburg a few years ago.
In 2007, it acquired 13 vacant office buildings in Doornfontein in Johannesburg and redeveloped them into a mixed-use precinct that provided affordable homes for 1,500 families or about 6,000 people. The development has 26 floors and is above a street-level retail podium anchored by Shoprite.
Amdec’s flagship project is Harbour Arch, a R14bn multi-phase development about 4km from the V&A Waterfront. It aims to compete with the Waterfront for residential tenants. The V&A, valued at nearly R20bn, is SA’s most expensive commercial asset.
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