Alleyroads to build 1,000 low-cost flats in Joburg
Funding received by Alleyroads, one of SA’s largest low-cost housing developers and buildto-rent specialists, will enable it to build 1,000 low-cost apartments in greater Johannesburg to reduce the city’s housing gap.
The group received R325m from the International Finance Corporation (IFC), part of the World Bank Group, in 2022.
Inkanyezi Village apartments in Katlehong, Gauteng, is the first of several affordable rental developments under construction for just less than R200m.
Upcoming developments include Meyerton, Falcon Village, Umthala Mews in Vosloorus and Eagle Heights, Delmas.
The IFC is the world’s largest development institution, focused on emerging markets in more than 100 countries, with commitments to deploy $31.5bn.
“IFC’s partnership with Alleyroads is essential for improving the quality of life in SA, especially for younger people and those who do not qualify for, or cannot afford a home loan,” said IFC country manager for SA Adamou Labara.
Labara said with this investment the IFC can improve access to good-quality, affordable and sustainable residential housing in SA — leading to positive social benefits such as better education and health outcomes.
Scheduled for completion at end-2023 with tenant handovers expected in early 2024, Inkanyezi Village will offer 378 apartments, which can accommodate up to 1,100 residents.
The village will cater for lower-to-middle income households with an average annual salary of about R238,000. Rentals range from R4,000R6,000 a month.
“The development will help to address the significant housing gap in Johannesburg’s affordable housing market and create jobs for the local community during and [after] construction,” CEO Ivan Pretorius said.
Pretorius said the development of Inkanyezi Village will create 860 jobs during the construction phase, with a further 45 permanent jobs in the operational phase. Up to 70% of the total project spend is reinvested into the community through job creation and skills transfers.
Alleyroads owns a portfolio of more than 2,000 rental apartments in six provinces and retail and industrial properties. About 67% of its portfolio is in Gauteng, followed by KwaZulu-Natal.
Some of its residential developments include Linden Lane in Roodepoort, Illovo Country Estate in KwaZulu-Natal and Eagle Heights in Mpumalanga.
The group has strategic land holdings valued at R1.2bn. In April Alleyroads will roll out its retail developments of more than 175,000m² of shopping centres measuring 5,000m²15,000m². In October 2024 Alleyroads will develop an industrial park to cater for businesses in and around the area.
Pretorius said Alleyroads has access to a development pipeline of about 20,000 apartments over a 10-year period, with a total value of about R6bn.
The apartments have been designed to meet the IFC’s excellence in design for greater efficiencies advanced green building standards, making them zero-carbon ready and among the first residential units in Sub-Saharan Africa to achieve such a high level of resource efficiency.
The development offers 65m² two-bedroom, one-bathroom units linked to a solar system that provides a monthly saving on utilities of at least 30%. Water and electricity are prepaid, and tenants will also get 250MB of free Wi-Fi data a month.