AMDEC Property Development and its partners are redeveloping the 47000m² old Nedbank office block in Doornfontein, creating 924 affordable apartments and a 6000m² shopping centre .
James Wilson is CEO of Amdec, which owns 50% of the company that owns Johannesburg’s mixed-use precinct Melrose Arch. He says Amdec is a partner in the redevelopment of 120 End Street in Doornfontein with Affordable Housing Company (AFHCO) and Chelsea Manhattan, a commercial property brokerage.
“We are led to believe that it is the single biggest affordable housing project housed in one building. We are developing it as rental stock,” says Wilson.
Monthly r entals will vary from R1800 to R3000 . T he total cost of the development is R240m. Construction has already begun and the first phase will be completed by the middle of next year.
Wilson says the 2010 Soccer World Cup was one of the considerations influencing the decision to invest in Doornfontein.
“It has to be also seen in the light of our general optimism towards the Johannesburg central business district and fringe CBD areas such as Doornfontein and outlying suburbs.”
He says the World Cup will add “massive value and focus” on areas such as Bertrams and Doornfontein because of the predominance of stadiums in these areas.
“One of our motivations is that responsible property developers must be involved in supplying affordable housing. We need to relieve the housing shortage . Our belief is that all stable, great societies are built upon a strong middle class, and the bedrock of somebody in the middle class is home ownership. The knock-on effects of people owning their own house or living in an affordable house are unlimited. ”
Wilson has not yet seen any significant increases in values in areas such as Doornfontein. “This is based on the fact that these suburbs have vast numbers of derelict and vacant buildings that need to be upgraded.”
Amdec and AFHCO are also setting up a city improvement district with the intention of getting all property owners in Doornfontein to “upgrade or uplift their properties”.
“Once we’ve achieved that we believe that will see significant property price growth.”
Nick Wilson
Posted to the web on: 19 September 2007