Communicare develops 314 social housing units at Bothasig Gardens

11 November 2019

Residents of Cape Town working in and around Bothasig, Century City or the city centre who travel to work from far flung areas, now have an opportunity to live much closer to work.

Construction is began on 4thNovemberon land owned by Communicare in Bothasig for 314 newrental housingunits. Phase 1 of Bothasig Gardens compromises 165 units completed in 1994 and Phase 2 was occupied in 2013 with120 units under the government’s social housing programme. Phase 3 extends the social housing by adding314 homes for familieswho would otherwise find living in Bothasig unaffordable.

The social housing developed by Communicareis a result of the organisation’sinnovative approach to financing housing delivery. To grow its portfolio of social housing, Communicarecross subsidisessocial housing from its otherproperty sales and rentals. The surplus generated is used, in part, to fund the development of social housing.

This model makes it possible forCommunicareto allocateover R20mof its own funds to developthe socialhousing at Bothasig Gardens. A total of R162.8m will be spent on this development financed through a combination of Communicare funds, commercial loans and government grants.A loan of R33m has been raised from Mergence Infrastructure and Development Debt Fund, an impact fundmanaged by Mergence Investment Managers.

“We are pioneers in impact investment in South Africa. We choose to work with well managed institutions such as Communicare that make a social and economic difference to people’s lives. We believe that our partnership with Communicare on the Bothasig Gardens development will assist in increasing the availability of affordable residential rental accommodation in Cape Town.” Mark Van Wyk, Head of Unlisted Investments at Mergence.

The development will afford 314 families the opportunitynto be closer to work opportunities, to main transport routes along the N1, to schools, hospitalsand local shopping malls. It provides opportunities for Cape Town residents to live in areas from which they were previously excluded.

Along with these new apartments, we arecreatinga community for tenants by building designated play areas and a hall for recreationaland cultural activities. It’s about creating the kind ofcommunity that we would want to share and be part of. *continued on page 2Saving cash and water is important fortenants. Communicare will install energy saving lighting, heat pumps, dual flush toilets and water-wise showerheads to help tenants save. The indigenous landscaped gardens will be irrigated by usingwater harvestedon site.

To qualify for accommodationat Bothasig Gardens, families mustearn a householdincome of less than R15 000. However, 30% of the accommodation will be allocated to householdsearning less than R5 500 per month.

Construction on the two, three and four storey buildingsbegins in November2019. These are good quality studio,one and two bedroom homes that afford tenants a starter opportunity to achieve greater things.

There are four different types of units to choose fromto accommodate a range of people in different stage of their lives. Youngerpeople or a couple just starting out may want to start with a studio unitbwhile the larger two-bedroomunitsare better suited to families. The studio units are about 31 m2, one-bedroom units about 36m2andthe two-bedroom units are between 42 and 45 m2.

The development has 94 studios, 63 one-bedroom and 157-two bedroom apartments to choose from. Many young people starting a career or a new job don’t have much choice of accommodation in Cape Town. We are all well aware that property is expensive and young families find it difficult to rentaffordable and decent housing. The latest phase of Bothasig Gardensoffers affordable rentalsfor working people.

“The prices will be about a third of what you wouldpay for similar accommodation in Bothasig. This is incredible value for our tenants.Bothasig Gardens makes it possible for families to live, work and raise children in a supportive environment, close to all the services they need,” says Neville Fowler, CFOof Communicare.

“I must thank Mergence Investment Managers, for partnering with Communicare and bringing us one step closer to making more social housing available to those whoneed it in Cape Town”“I’mproud to be making a small contribution towards a city that caters for all itsresidents alike,while addressing the inequality of social planning that we inherited,” said Fowler. End Renders and Photos:https://www.dropbox.com/sh/zoch6cjgqed3su8/AADxIpiZdXkGVjpYzHGhuxxea?dl=0

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