Futuregrowth Asset Management has invested a total of US$45 million that will see more than 20 000 Gauteng families become first-time homeowners, enabling them to secure a firm foothold in the residential property market.
Futuregrowth Asset Management has heavily invested in a number of major housing projects coming up and being undertaken by the Cosmopolitan Group, with the financing being used for the installation of external and internal bulk services, ranging from the provision of electricity to water and sanitation and roads, prior to the proclamation of council-approved stands that will be developed with new houses for sale into the market.
Cosmopolitan, a lower- to middle-income housing company sells the housing units priced from R400 000, with packages designed for families with an income of between R10 500 and R30 000 a month.
“Demand for housing in this income group far outstrips supply. These developments enable mainly first-time homeowners to move from outlying areas into growing metropolitan suburbs situated closer to places of work, with amenities and facilities on their doorsteps,” noted Futuregrowth portfolio manager and investment analyst Paul Semple, highlighting the investment as “real social transformation and wealth creation”.
“It gives young families upward mobility by enabling them to create equity and to eventually trade up in the property market,” he added.
Futuregrowth regards its investment in the housing sector as part of its dedication and commitment to the principles of responsible investing.
“This is a major investment in a market where, while there is huge demand and a strong social need, many developers have failed owing to problems with financing and because margins are so tight,” Semple said.
Cosmopolitan intends to unveil a total of 30 000 housing units in the next eight to ten years, with the largest project at Alberton, south of Johannesburg, where 15 300 residential and high-density homes will be built on a 740 ha area.
Famously known as Watervalspruit, the project will be started in early 2017 and will allow for development of a regional shopping centre, 16 educational facilities, including an independent school, and 17 social nodes for community facilities.
Support services are also being set up at other developments in Alberton, and in Protea Glen and Windmill Park.
Further, the is developing housing projects in Stretford, Savana City and Evaton, and intends to develop 4 700 homes and various amenities on land formerly occupied by the Lion Park, north of Johannesburg