Nedbank Corporate and Investment Banking and Rabie Property Group have joined forces to complete the Burgundy Estate residential development in Cape Town with the first two projects totalling 370 units at a cost of R400m due to get underway shortly.
According to Richard Thomas, the Regional Executive for Property Finance Cape at Nedbank Corporate and Investment Banking, the first development to be undertaken by the newly formed Burgundy Estate Joint Venture is Vermont, comprising 190 one, two and three bedroom apartments. This entire R200m development has been acquired by a private investor for rental stock and construction staring this month (September.)
Thomas is further pleased to announce that a second development of 165 one and two bed sectional title apartments and 16 three bed double storey townhouses is expected to be launched to the market in November with completion scheduled for June 2017.
“Final planning is still underway but pricing is expected to start at around R750,000 VAT inclusive for a one bedroom unit and from R950,000 for a two bedroom apartment.”
The award-winning Rabie Property Group which is the also the developer of the burgeoning Century City precinct has been responsible for many major residential projects in the Western Cape, and brings more than 35 years’ experience to the project.
Rabie MD, Leon Cohen, says they will be applying some of the many lessons learned over this period in the roll-out of Burgundy Estate, which, due to some confusion with a similarly named development in Brackenfell, is to be rebranded Burgundy Estate Cape Town.
“This will include introducing more green, private open spaces, great landscaping and other communal amenities in all new developments we bring on stream. This will create lifestyle estates offering an improved quality of life to families while still providing great value for money.”
Cohen said they were looking at rolling out larger residential schemes than has been done to date as these would introduce an economy of scale which would enable them to provide extra amenities such as security, swimming pools, clubhouses and playparks but still be able to keep prices at affordable levels.
Thomas added that there were some other exciting initiatives both within the estate and on neighbouring land abutting the N7 that will all add to the appeal of Burgundy Estate Cape Town.
“There are around 3,000 remaining residential development opportunities on the Estate and we envisage this will take between five and 10 years to complete.”
The Burgundy Estate Joint Venture will have a dedicated sales office on site and construction of this is expected to get underway shortly.
Rabie Property Group acquired the remaining undeveloped land at Century City in 2004 and since then, billions of rands in development including more than 3,500 residential front doors, have been undertaken to create a thriving city within a city where property values have escalated dramatically and where investors have achieved substantial capital appreciation. All of these developments over the past decade were also funded by Nedbank, who is proud to back the Rabie Group and help realise their property opportunities, says Thomas.
“Together we are looking forward to weaving a little of this magic at Burgundy Estate Cape Town to not only protect purchasers’ investments but to reap similar returns,” adds Cohen.