A new luxurious residential development in Johannesburg’s prestigious Melrose Arch is guaranteeing rental income for owners.

The Lincoln at Melrose Arch, a joint venture between the Melrose Arch Development Company and Kirchmann Hurry Projects Development Company, guarantees owners 10% of the gross purchase price for the first year after transfer.

Comprising 56 elegant apartments, of which 14 are luxury penthouses with roof-top gardens, The Lincoln at Melrose Arch is the third project in the precinct’s development rollout following the successful first phase commercial, residential and retail components.

Total sales of The Lincoln apartments will equate to R215 million with the sales price totalling approximately R22,000 per square metre inclusive of the premium location and exclusive high-end finishes. Each of the one- and two-bedroomed apartments comprise between 100m2 and 200m2 of living space. Apartments are priced between R2,3 million and R5 million.

Construction of The Lincoln commences in early 2006 for completion by mid-2007 with the rental guarantee offering protection until mid 2008.

The 10% 12-month rental guarantee, valid from date of transfer, is underpinned by The Lincoln’s ability to generate rewarding returns on investment. Furthermore the developers are responsible for sourcing the tenant, thus minimising risk and effort for the owner.

“While this guaranteed rental income is a new concept in South Africa it has been extremely successful in countries such as Australia and we certainly expect more developers to adopt this type of deal structure in the future,” said Andrew Kirchmann director of Kirchmann-Hurry Projects Development Company.

Important to this deal structure is that owners benefit from potential substantial capital appreciation on their investment, of about 15% per year in this case, in addition to the guaranteed 10% return in the first year of ownership.

Kirchmann predicts a R3,6 million apartment in Melrose Arch should be worth about R5 million by mid-2008 – a capital appreciation of R1,4 million. Furthermore with rampant building costs escalating at 15% to 20% per year, the tremendous benefit to investors who take up ownership of The Lincoln apartments now becomes evident.

“Simultaneously, in mid-2008 Jo’burg will be gearing up to host the 2010 World Cup with hundreds of international representatives descending upon the city and requiring a residential base. The elegant apartments of The Lincoln at Melrose Arch are ideal to meet this need,” said Kirchmann.

 “In additional to the positive property fundamentals, strong economic environment and the absolute quality of The Lincoln, its location in Melrose Arch elevates it substantially as an investment,” said James Wilson, director of Melrose Arch Development Company.

At present, there are approximately 4,000 people living and working in Melrose Arch. By 2010, when all phases of the precinct are scheduled for completion, this will increase to 22,000.

These benefits are further enhanced by both the exclusivity of The Lincoln and the limited number of residential units within the secure Melrose Arch precinct, with only 250 further residential apartments scheduled for release.

“The supreme convenience of living in the mixed-use precinct of Melrose Arch together with its vibrant African internationalism and social interaction enhances the everyday ease of residing at this landmark address,” elaborated Wilson.

The Lincoln is the third Melrose Arch Development Company development to be confirmed after the announcement to the precinct’s rollout in April this year. In a joint venture with Warner Projects, Melrose Arch Development Company is also developing Melrose Square on Oak Lane, a residential complex comprising 62 units varying between 65m² and 140m². 
Furthermore sectional title offices of 6,500m2   are to be developed in Melrose Arch by Barrow Projects at One Melrose Boulevard as a result of the unrelenting demand for commercial space in the fully let precinct.

The Lincoln at Melrose Arch ushers in a new era of urban apartment living. The   four-storey building served by six separate entrances and with 2 underground parking bays allocated to each apartment.

The Lincoln’s residents’ lounge includes glass-domed cappuccino facilities in the atrium, Wi-fi capabilities and a heated lap pool with timber deck and bar area.

Access to the apartments is obtained by double-sided security-coded Kone Elevators which open directly into the majority of the apartments.

Meticulous attention has been given to every design and finish detail inside the apartments with a bright and airy spaciousness achieved by a proliferation of windows, soaring ceilings and balconies. State-of-the-art fittings include heated towel rails in the bathrooms, Japanese screens in the bedrooms, fully imported European kitchens by award-winning designers Kitchen Clinic featuring Miele appliances, and climate-controlled air conditioning throughout the apartments.

“The Lincoln at Melrose Arch will reflect restrained contemporary design, drawing on traditionally proportioned four-storey townhouses with deco-inspired elements manifesting in staircases, handrails, fenestration proportions and sun-control shutters,” offered Graham Wilson of Osmond Lange Architects.

Melrose Arch is owned by Southern Palace, a Property Partners and Amdec Property Developments joint venture.  Southern Palace purchased Johannesburg’s Melrose Arch precinct for R1,27 billion in December last year in South Africa’s largest single property transaction to date.

~Ends~

For further information, please contact:

James Wilson
Director
Melrose Arch Development Company
Tel 021 702 3200
Cell  083 653 6655

or

Andrew Kirchmann
Kirchmann-Hurry Projects (Pty) Ltd
Tel. 011 462 3191
Cell 082 330 0670

Or

Sandy Davey
Marketing Concepts
Tel. 011 880 2213
Cell 083 453 6668