Johannesburg - In a show of confidence in the potential for a sustainable economic recovery in the Eastern Cape, Nedbank Corporate Property Finance has approved finance agreements worth more than R31.5 million for the construction of two vehicle showrooms in Beacon Bay in East London.
The deals comprise a R24.5m loan to the 5 Langenhoven Road Trust for the construction of a new General Motors commercial dealership and R7m in funding to the Edcot Trust for a Suzuki Motors retail showroom.
Richard Thomas, the Cape regional executive for Nedbank Corporate Property Finance, said the decision to partner with the two vehicle trading entities was based on a combination of their track records, quality and strength of management, and clear signs of economic recovery potential emerging in the Eastern Cape.
“Vehicle manufacturing and sales are key drivers of the economy in the Eastern Cape and these significant investments, by leading industry players, into both the retail and commercial vehicle sectors in the region, mirror the growing sense of optimism that is becoming evident across its economic sectors,” he said.
Thomas added that other important factors in the bank’s decision to get behind these types of property developments was the steady, albeit gradual, improvement in employment figures combined with the commitment by the public and private sector to ensure sustainable economic growth in the region.
“While the overall economy in East London remains under pressure, there are sectors that are showing positive growth signs, not least of which are public sector employment, retail industries that cater primarily to the basic needs of previously disadvantaged individuals and communities, and vehicle manufacturing and sales.
“In addition, the 2030 Vision… being developed for the region by the Eastern Cape Planning Commission will provide significant support for the continued growth across these and other sectors, by addressing poverty and creating a platform for job creation,” he said.
Against this backdrop, Thomas expressed confidence that the relative strength of the vehicle sector, despite challenging economic conditions in recent years, had real potential to evolve into sustainable industry growth and that Nedbank was committed to enabling and facilitating such growth.
“Nedbank Corporate Property Finance’s leadership position in the… property market is a direct result of our commitment to going beyond mere finance provision and ensuring that we are dependable business partners to our clients and committed stakeholders in the economic and social development of our country.” - Staff Reporter