Roy Cokayne
FREEDOM Property Fund has launched several major projects, including two residential property developments, to boost its portfolio of income-generating rental stock.
Freedom, which listed on the main board of the JSE in June and has a diverse R1.56 billion property portfolio with a strong weighting in selective residential property, is also unlocking capital by releasing residential properties for strategic sale to the market.
In Burgersfort in Limpopo, Freedom has commenced with the development of the Tubatse Resident Estate, which will include a mix of 3 700 residential units with a variation of housing options and communal facilities.
Freedom is also developing 90 residential units on a prime site in Pretoria at Montana Residential, a medium-cost secure residential estate adjacent to the Colonnade Shopping Centre and Zambezi Country Estate.
To unlock capital for further development projects, Freedom has started with its strategic sale of 261 services residential stands in Miami Village, in the St Helena Bay area of the Western Cape.
Sale agreements on 35 of the stands, which are ready for development and average about 500m2, have been concluded at R150 000 a stand.
These were among several projects identified in Freedom’s prelisting statement to advance its proposition for investors to derive capital growth substantially from residential property development.
Freedom has a strong focus on residential property development held for lease and serving the attractive low- to mid-market segment.
Tyrone Govender, the chief executive of Freedom, said Burgersfort was the fastest-growing town and there was tremendous demand for accommodation.
“The thriving local economy is experiencing significant growth resulting from the investment by the majority of mining corporations over the last few years, as well as the increased activity in the retail sector by the likes of Redefine and Resilient which responds to this.
“The mines estimate the need for housing in the area at around 20 000 units right now and this demand spans the entire economic spectrum,” he said.
Govender said the Tubatse Residential Estate was a natural extension of the town and would create a quality residential community comprising about 2 000 full title units and 1 700 sectional title units.
He said the sectional title units, which formed the first phase, were being developed by Freedom and would be held for lease.
He said the units Freedom was developing at Montana Residential would also be held as part of its income-generating rental stock.