Type: Mixed Use Land
Price: R 17,500,000
Featured : Yes

96ha Affordable Housing & Retail/Commercial Development Land. 5010 opportunities.

PROPOSED DEVELOPMENT
The property is situated in the strategic zone that was earmarked by the local authorities for residential development.

This development will comprise a vibrant mix of residential, commercial, office, retail, entertainment and schools. The vision of this development is to create an affordable mix-use precinct, which will provide the opportunity to live, work, play and travel. It will realize the ideal of a cost-effective urban living.

FEASIBILITY AS AT MARCH 2009

PROPOSED DEVELOPMENT DESCRIPTION:

   Low Density residential units    (25 - 30 units/ha)     432
   Medium Density residential units (50 - 80 units/ha)    1519
   High Density residential units   (100 - 120 units/ha)  3059
   Commercial – Bulk Development		 	 29437m²

FINANCIAL SUMMARY :

   TOTAL CAPITAL LAYOUT                 R 2,636,932,466
   INCOME                               R 3,024,802,269
   NETT PROFIT                          R   387,869,802
   RETURN ON CAPITAL LAYOUT             15%

NOTES:
All values are current (No escalation on Capital layout or Income are included)
Project will be done over a 10 year period.

PROCLAMATION OF LAND
The land is currently zoned as agricultural and the rezoning process will start in May 2009. The process to rezone the 96 ha of land will be finalized by the second quarter of 2010.

The cost involved in rezoning the land is estimated at R 8.1 million and consists of the flowing:

CAPITAL NEEDED TO OBTAIN CONDITIONS OF ESTABLISHMENT

   Town Planner                  R 2,000,000
   Geotechnical reports          R   100,000
   Environmental impact studies  R   200,000
   Electrical service agreements R    50,000
   Civil service agreements      R    50,000
   Land Surveyor                 R   300,000
   Architect                     R   300,000
   Costs to relocate Squatters   R 1,000,000
   TOTAL (EXCL. VAT)             R 4,000,000

After this process is completed and the squatters relocated, the value of the land is estimated at R100 million rand.

VALUATION OF LAND
Currently 30 hectares of the land is occupied by squatters and that was taken in account when the valuation was done.

The actual value of the land is R38.5 million which works out at R40/m².