BANTRY BAY:
KLOOF & BROMPTON ROADS
BANTRY BAY LUXURY TOWERS
We identified 3,170 square metres of General Residential zone 2 land that spans across a number of erwen.
Total land acquisition cost is ZAR86.5m.
Developers, Investors, Fund managers etc are welcome to contact us for the full details.
TWO PHASE development proposed as follows:
To consolidate and redevelop Five Bantry Bay erwen in a Two Phase process.
Phase one:
The GR2-zoned erwen are: 130, 132 Kloof road and 32 Brompton road, Bantry Bay.
Phase two:
The GR2-zoned erwen are: 134, 136 Kloof road, Bantry Bay.
Phase One
Phase Two
Concept Design: Dark theme exterior in a lush vegetation forest setting.
Interior Design: Dark theme interiors.
1. Market Analysis
ON THE MARKET in Bantry Bay as at 10 November 2024.
Address, size and price as well as R/sqm values.
SALES in Bantry Bay 12 months.
Average and high R/sqm values. Reports for the past 12 months (8 November 2023 – 8 November 2024) below for both Sectional Title and Full Title property transfers.
Sectional Title transfers 12 months: 8 November 2023 to 8 November 2024
Full Title transfers 12 months: 8 November 2023 to 8 November 2024
2. Financial Analysis
LAND ACQUISITION
The table below outlines the pricing for each of the five erwen.
In Phase One: Land acquisition pricing totals R48,000,000.00
In Phase Two: Land acquisition pricing totals R39,000,000.00
RENTAL INCOME
All five properties currently have houses on site, and these would be rented whilst awaiting planning approvals, total rental yield on a monthly basis in the region of R380,000 per month.
FUNDING PARTNER
Capitec Business have indicated their intention to proceed with the right developer who present themselves as the perfect partner.
Capitec Business requires a contribution towards the purchase price from the developer. If the existing properties are purchased as is, they are able to consider a LTV of 80% against the residential properties’ market related value. Market value is the lesser of the purchase price and valuation (this will be done on a as is and completion basis)
Development proposal:
- Either 4 x separate dwellings or apartment complex
- Apartment complex will result in consolidation of erven
- If they consider a development proposal upfront, the LTV will be based on value on completion and their LTV can range from 70% to 80%
- Interest on the development can be capitalised. This is taking into consideration when viewing the funding requirement and development cashflow
- Each agreement drafted is unique to the development being financed
- Draft plans with site development diagram will be required to determine “As Is” and “On Completion Value”
- An initiation fee will apply
A developer with a stellar track record is the perfect partner for our Funding partner Capitec Business.
To proceed, Capitec Business require the following information:
- Developer profile
- Builder CV if not same as developer
- AFS of developer including
- YTD Management Accounts
- For more information and to proceed with a Memorandum of Understanding and acquisition of the land, please contact me.
- Development cashflow
- Copy of Deed of Sale of Properties
- Pre-Sale Schedule
- Directors Personal Balance Sheet
- Draft Plans
- Development Costings
CO-DEVELOPMENT OPPORTUNITY
3. Technical Feasibility
ARCHITECTURE
There are a number of highly skilled architects and designers to employ, service providers and material suppliers for the high end market is in ample supply.
Peerutin Karol Architects https://peerutinkarol.com/
Bomax https://www.bomax.co.za/
Connect Architects https://www.connectarchitects.co.za/ .
INTERIOR DESIGN
Asreatly Design has produced the proposal for the buildings’ exterior and interior looks with rendered images of the interior design requirements.
4. Legal and Regulatory requirements
TOWN PLANNING:
Tommy Brümmer https://www.tommybrummer.co.za/
The GR2 (General Residential two) zoning is favourable, consolidation of all erwen in a row, would drop any title deed restrictions and needs to be applied for which we can proceed with once all four erwen are owned by the same owner.
This process alone could take anywhere from 12 up to 18 eighteen months, worst case scenario 24 months, as the public would be required to participate in this departure approval.
Planning approval will take around six months. So it could be up to 2.5 years before construction can begin.
However, we have identified a more suitable alternative which is more favourable in this regard, and that is to undergo a notarial tie of all four erven once they have been acquired and to apply for the relevant departures of removing restrictions on title deeds and other issues.
SPV REGISTRATION + ISSUING OF SHARES & CONVEYANCING:
Stefan Le Roux www.sllaw.co.za
