Live, work and play in your im­me­di­ate sur­round­ings

Umh­langa’s Worx Zone ho­tel guar­an­tees rental re­turns for the first three years. Michelle Swart finds out more

Business Day - Home Front - - HOMEFRONT -

KWAZULU-Natal’s Umh­langa Town Cen­tre, the brain­child of Ton­gaat Hulett De­vel­op­ments, has be­come a model for the fu­ture ur­ban de­vel­op­ments in SA, not only due to its rev­o­lu­tion­ary ur­ban de­sign and func­tion­al­ity, but to the form and beauty that the area has man­aged to cre­ate and main­tain.

The Town Cen­tre en­joys easy ac­cess onto a net­work of ma­jor roads, in­clud­ing the N2, while the King Shaka In­ter­na­tional Air­port is also only 10 min­utes North of Umh­langa.

The Umh­langa Town Cen­tre boasts the state-of-the-art Umh­langa Hos­pi­tal and Med­i­cal Cen­tre, and a host of the finest res­i­den­tial prop­er­ties and pri­vate schools. Fur­ther­more, Old Mu­tual’s ex­tra­or­di­nary R1,6bn Gate­way The­atre of Shop­ping is only a few min­utes away. The pris­tine beaches of Umh­langa Rocks are a short drive down the road.

It is within this de­sir­able lo­cale that The Worx Zone, a mixed-use com­mer­cial devel­op­ment, is po­si­tioned. This R80m com­mer­cial prop­erty project be­ing jointly de­vel­oped by Growth­point Prop­er­ties and Key De­vel­op­ments in the Park­side precinct of the bur­geon­ing Umh­langa New Town Cen­tre in­cludes an of­fice com­po­nent that con­sists of 62 “busi­ness mod­ules”. These mod­ules of­fer small busi­ness­men and en­trepreneurs the op­por­tu­nity to own 25m² of of­fice space with ac­cess to a 650m² busi­ness cen­tre.

The Worx Zone has now added a sec­tional ti­tle ho­tel com­po­nent to its of­fer­ing that will guar­an­tee rental re­turns over the first three years. The four-star Life Ho­tel con­sists of 30 well ap­pointed 50m² apart­ments in­cor­po­rat­ing two ho­tel units to rent.

Mark Tay­lor, CEO of mar­ket­ing agents the eLan Prop­erty Group, said: “The added value of hav­ing two rooms to rent within one apart­ment in­creases the po­ten­tial for an ex­cep­tional long-term an­nu­ity in­come.” Due to its lo­ca­tion in the Umh­langa New Town Cen­tre, the ho­tel is per­fectly placed to at­tract busi­ness and leisure trav­ellers alike. As a re­sult, oc­cu­pan­cies are ex­pected to be con­sis­tently high adding to the rental re­turns po­ten­tial.

The ho­tel’s in­vest­ment model is based on the River­side Ho­tel which was de­vel­oped by eLan in Dur­ban North 11 years ago. Tay­lor said: “The River­side Ho­tel rooms are cur­rently bring­ing in a 34% re­turn for their own­ers. The Worx Zone Life Ho­tel al­ready guar­an­tees an 8% re­turn for the first three years.”

The com­bi­na­tion of the of­fice and ho­tel com­po­nents cre­ates a “stay, work, play” en­vi­ron­ment where users of the fa­cil­ity can net­work, do busi­ness and so­cialise in their im­me­di­ate sur­round­ings.

About 48% of the devel­op­ment was sold at the launch, val­ued at ap­prox­i­mately R47m.

Knowl­edge Fac­tory’s SAPTG statis­tics for sec­tional ti­tle prop­er­ties in Umh­langa shows that a whop­ping 190 trans­fers were un­der­taken in the 2009-10 pe­riod, for an av­er­age price of R2,7m. In the 2008-09 pe­riod, 206 trans­fers were con­cluded fro an av­er­age price of just over R2,5m. While the five-year growth trend shows an ap­pre­ci­a­tion of 6,14%. Price: Ho­tel apart­ments about R1,3m Of­fice mod­ules about R499 000 All prices ex­clude VAT Con­tact: 0861 060 060

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