The economic conditions experienced over the past two years have contributed to an increase in development land coming to the market. Such pieces of land, particularly those with approved plans, offer fantastic investment opportunities and are therefore attracting enormous interest from both international and local investors alike.
‘’Development land with approved plans is a prime investment opportunity, as the planning process has been completed and approved, allowing construction to begin when market conditions become favourable,’’ comments Jacques du Toit, sectoral analyst at ABSA Bank. Investors have been watching key development land with approved plans, such as golf estates for example, with keen interest as the majority of them are believed to hold considerable long-term investment potential.
Examples of such properties include the Riviera Golf Estate in Vereeniging, the Simola Golf Estate in Knysna and the Highland Gate Golf and Trout Estate in Dullstroom. Auction Alliance took each of these to the auction floor and the first two were bought by new property developers who went on to turn each into successful developments. Comments Rael Levitt, CEO of Auction Alliance, ‘’Despite a downturn in the leisure property sector, South Africa is still seen as a premier golfing destination and we have seen a renewed interest from developers across the world for development land with approved golf estate plans.’’
Developers are attracted to these properties as most of the hard work has already been done, allowing them to focus on running through the development phases. Adds Du Toit, ‘’ Plans that are approved will also carry the necessary approval for services such as electricity and water, which are crucial aspects to any successful development.’’
A prime example is the Sitari Fields Golf Estate in Somerset West, which will be going under the Auction Alliance hammer on 15 July. This will be a historic sale – it is the first ever Cape Town golf estate to be offered to the market. The 185-hectare property that is located alongside the N2 highway, only 30 minutes’ drive from Cape Town’s CBD, includes two hotel sites and a planned 18-hole David Frost signature golf course. Comments Levitt, “There is no doubt that this property presents an incredible investment opportunity for those wishing to make their mark on the international golfer’s map. We envisage the property being sold to a new developer, who no doubt, will go onto great success.’’
Sitari Fields was planned as a Cape vernacular development, with a golf school, a 14-hectare private nature reserve and a hotel with a conference centre. The property has approvals for 1 130 residential units, with a section zoned for a commercial and office centre and a wide range of other amenities. The golf estate was to be developed by Golf Data on what was known as the Vogelsang Farm.
‘’Due to the current state of the market, great deals are being picked up by second developers, which is why the Sitari Fields Golf Estate has attracted such immense interest. This is not the first property development to be offered to the market, but it is certainly the biggest auction to date,” concludes Levitt.
To view a list of upcoming development opportunities visit www.auction.co.za