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Discussion Starter #1
Here's some renders for this exciting development, which will be located adjacent to the new Durban Art Gallery and Rivertown Brewery Cafe. I like this one very much!

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Its location in relation to the overall Rivertown precinct (it's the yellow block; art gallery and brewery is the light blue block)




Its location in relation to the rest of the downtown (its the red block)

 

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Wow. Impressive being black and having vertical green walls the whole way up. Progressive and bold. This is exciting. I didn't expect such a bold first move with this and the 8 Morrison tower. Smart design. First time I have seen tower designs from design workshop sa.
 

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Yes, it's very exciting and bold. The good thing is that I think ground-works have already begun for this one. Check out the excavation equipment in the two pics below, taken from the adjacent beer hall...

Right of pic...



 

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Wow they starting?? These guys are quick! I can't stop drooling on the black design. I LOVE black buildings
 

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if that is really construction starting, i think im gonna flip out!
If it is, it is SUPER fast... sales have not even launched that i am aware of? Can someone investigate the piling rigs??
 

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This is the best of all the inner city developments in Durbs IMO. I cant "speak durban" either, so just come.
Honestly, nobody speaks "Durban" anymore... we have Chats and Phoenix dialects which are different, then all the white people just steal the random cool shit we hear from other ppl :nuts:
 

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If it is, it is SUPER fast... sales have not even launched that i am aware of? Can someone investigate the piling rigs??
Sadly the piling is not on this site. It's on the other two demolished sites in the area we have spoken about previously.
 

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what site is right next to this that has piling work going on? can you show on Google Maps or on the map that shows the site for this tower.
 

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so that piling machine we see in the above pics is across the busy street from this development site and is actually on the Audi site? seems so close to be on that site..
 

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i have heard having problems getting numbers to work i.e. unit size vs cost m2 vs selling price in that part of town. Depends how first 2 projects launch and are selling
 

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Good to know. I think the current prices are relative bargains. Again with over 30% of pixley sold in first month it bodes well. This one is in a far better spot for move in right now.
 

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not sure i agree with you . between pixly, pioneer, Intrepid and this there are close to 1000 apartments. No way there are 1000 people who qualify for finance if one assesses demographic of purchasers. 80/20 LTV and even on a small unit of say R300k one needs a R60k deposit and then need to wait for 90%-100% sales of building before developer starts so your deposit is tied up for say 12 months . if you need to borrow R240k to buy then R60k in cash is a massive amount to have saved.I do lots and lots of affordable resi in a new resi income fund (target is 10 000 apartments or R5bil )in the LSM 5-6 band and all data supports inability of said target audience to access financing. National credit act is a massive hindrance but saves people from being too indebted and credit now is a function of affordability not asset value.

in a nut shell the lower down the food chain and LSM banding you go the % of home loans approved drops dramatically even though the risk assessment of the asset is good (high demand, small units, priced right) which the bank can repossess and sell in an event, BUT thats not how things work at present. Maboneng is NOT LSM 1-4 (social and gap housing) which is typically your sub R500k units. banks not that interested in financing inner city units , yes they do but begrudgingly and thats why there are not 1000's and 1000's of units being developed sub R500k in the CBD's its not about no demand , its about no ability to finance.

Now we are doing income fund i.e. built to hold and we have balance sheet to support this so we are not really slaves to the banks risk assessment of CBD financing. yes its happening but not on the scale the country needs. there are over 4mil houses short and government can't do it alone so developers need to step up which we do but face financing issues at the end of the day.

Typical structure for a build to rest is senior debt at 50% LTV so you need to find 20% equity plus 30% mez financing . Now if you are developing to sell then pre sales % =finance i.e. presage 70% then bank will give you 70% debt, Pre-sale 90% and bank will give you 90%, hence the massive delays between launch and start like on Sandton Sky , 18 months and unfortunately same will occur here.

Wish Jonathan well and we are also sniffing around in Durban for buildings to convert/ develop but above is a snap show of what happened behind the scenes on property not the idea that is a cheap apartment in a funky part of town so it will sell well.
 
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