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Mixed-use magic from Mvelaprop

Posted On Friday, 20 September 2002 10:01 Published by
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Tokyo Sexwale's first property project has been a success
By Ian Fife

Tokyo Sexwale's first property project has been a success. Mvelaphanda Properties (Mvelaprop) has all but sold out its mixed-use Tyger Falls next to Cape Town's Tyger Valley retail centre less than a year after having bought the property from Monex.

All of the last three sites in the 29-site development have at least three buyers pitching for them and should be sold in the next week, says Mvelaprop marketing director Stuart Chait.

He is already ahead of his R75m sales budget by R3m. 'And,' he says, 'we expect to get another R15m from the sale of some excess building rights we have available.' Return on gross cost will probably exceed 40% in under 12 months.

Chait says buyers are ready to start building the R600m waterfront complex of shops, offices and residential units. 'If we had not been held up by planning bureaucracy, the development would already be employing thousands - a major aim of this black-empowerment company.'

Developer Charles Potgieter is pitching his 56-unit waterfront apartments at R8 500/m² - a 60 m², two-bedroomed unit will go for R500 000. 'We haven't finalised our construction costs, but 80 buyers have booked units at that price,' he says.

If the sales are finalised, Tyger Falls' prices will be almost as high as Sea Point beachfront's , further evidence that mixed use, rejected until now by major institutions, can be a winning formula.

Financial Mail

Publisher: Financial Mail
Source: Financial Mail
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