Tri-Star Construction and Profica, a construction solutions agency, have announced that building work on the new Saxon Square apartment development in Rosebank is set to begin in six weeks.
The residential property project, valued at R150 million, is expected to be completed in 16 months.
Saxon Square, which will be located close to the Rosebank Gautrain Station on Oxford Road and the neighbouring Rosebank office and retail hub, will be built in one phase with 138 units.
“Buyers [in the development] will be able to settle in or start letting out quickly, without being on a partial construction site while other phases are completed,” says Profica CEO Tim White.
According to Tri-Star, the apartment block’s amenities will include a 24-hour concierge, biometric access control, a resident’s cafe, pool, rooftop garden as well as a garden courtyard, a yoga lawn, an outdoor cinema, and a co-working lounge.
Apartment hotel component
Saxon Square, which will comprise one- and two-bedroom apartments, is expected to also cater for both long- and short-term stays through Wink Aparthotels, a Cape Town-based management group that will have an on-site presence in the Rosebank development.
Tri-Star chair Malose Kekana says pre-sales targets for the project were reached in record time, with significant investor preference toward one-bedroom units.
“Many of our buyers are property investors, particularly those in financial and property circles, who have recognised a good opportunity. We expect this to include more first-time and buy-to-live buyers as soon as we start construction and people see the development coming to life,” he adds.
“We’re excited that the vision we had for this unique development is becoming a reality as we reach the next milestone.”
Speaking at the Saxon Square development launch on Monday, EasyProperties CEO Rupert Finnemore said the company is excited to be associated with the project.
“The amount of market research carried out by the Saxon Square team into the viability of this property development was incredibly comprehensive.
“With projected net rental yields of 8.6% and an IRR [internal rate of return] of 10.7% – a combination of capital growth and yield – Saxon Square presents an excellent opportunity for investors. We expect to quickly reach our funding target.”
Finnemore confirmed that 927 EasyProperties investors (as of Monday night) had put their money into five furnished studio units, after the initial public offering (IPO) opened just over a week ago. He said such IPOs, offered through EasyProperties, “democratise access to property investment”.
“The average investment size we’re seeing is R1 000, with the largest investment so far at a little over R85 000.”
EasyProperties’ investor statistics for the development show that 62% are male and 38% female. “The majority of investors [42%] are in their 20s, with 30% in their 30s. We even have 22 investors under the age of 15, learning about property investment at a young age,” said Finnemore.
The Saxon Square ‘listing’ closes on 14 July.
White said the fact that EasyProperties is investing in the Rosebank development is evidence that the property offers a strong investment proposition and provides more options for investors.
“Whether investors opt to purchase their own units to live in or let out, or own a portion of Saxon Square through the EasyProperties IPO, we believe that the development will offer excellent returns,” he added.
“A lot of people are looking to get into property,” said Ryan Flowers, fund manager at Cape Town-based rental management solutions company Flyt Property Investments.
Flowers revealed that Flyt has invested in 14 furnished units, adding that the investment was motivated by several commitments including renewable contracts and an administration team that will manage guest trips, from flights to their stay at Saxon Square.
Nondumiso Lehutso is a Moneyweb intern.