Real Estate Investor Magazine July/ Aug 2020 July 2020 | Page 43

According to Bedeker, “When it comes to construction
sites, project managers will need to start thinking of systems
to minimise the number of workers so that social distancing
requirements can be met, whilst still ensuring construction
project milestones and timelines are adhered to.”
One of South Africa’s largest retirement estate living
developers, Evergreen Lifestyle, which is owned by property
developer Amdec Group and financial services group PSG,
had to slam the brakes on seven construction sites and
new projects where it employs close to 7 000 people when
lockdown was introduced.
With 750 000 m² of housing (over 5 000 units) and facilities
across 13 retirement villages either under construction or in
the planning phase, its management was understandably
relieved when the sector was given the green light to resume.
“There are huge opportunities in this property class
in South Africa,” says Bedeker. “Too many of our elderly
population are living in inadequate homes when they could
be living in an estate offering a sense of support along with a
ream of services and amenities.
“To keep up with the demand in estate living we plan to
grow our national footprint tenfold to R30 billion in the next
decade. “We will grow our base from 1 000 units to 10 000
units by 2030.”
It has submitted a comprehensive short- to medium-term
plan to the government for actionable reforms to help the
sector recover and is working with government to develop
an industry-specific Covid-19 Construction Health & Safety
Protocol.
This will supplement the already stringent health and
safety regulations for construction. Contractors already have
well-developed resources in place to comply with legislation
requiring site-specific safety plans. Now, additional measures
include the provision of appropriate PPE and the regular
monitoring of the health and safety of the workforce.
• A new report by Singular estimates that the South African
economy could shrink by 14% this year as it tries to
recover from the coronavirus crisis.
• Sectors expected to be hit hard are construction, mining,
retail and hospitality
• Predictions are that it could take up to six years to recover
from the trauma of Covid-19 - and during this time there
is little chance of much recovery in the building industry
• The current crisis could result in year-on-year contraction
of 18% in the construction sector, which represents 4% of
GDP
• According to construction market intelligence firm
Industry Insight, the impact of the coronavirus on the
construction sector will be catastrophic, unlike any
economic shock the sector has previously had to endure,
and will result in it shedding an estimated 120 000 to 140
000 formal jobs.
Bedeker says the ‘pause’ has sharpened developers’ minds
about the future, given them time to relook their designs,
sales methods and the way their villages function. He explains
that the Covid-19 pandemic will strengthen retirement living.
It has highlighted the need for a sense of community and
convenience which is driving interest in its life rights purchase
model. Buyers can purchase the right to live in a home in a
retirement village but the developer retains sole ownership
and carries the responsibilities for maintenance, clubhouses
and health/frail-care centres.
“Children have begun to realise that their parents’ health
and welfare will be looked after impeccably in a life rights
retirement village. It’s clear that lockdown has brought to
light the dependence we have on one another, which is
something core to the retirement village concept,” Bekeder
concludes.
SOURCE Evergreen Property Investments
Cobus Bedeker is the
Director at Evergreen
Retirement Holdings. The
business began with a vision
to change the retirement
landscape in South Africa.
Evergreen provides
beautiful accommodation
and world class facilities and
services to all residents.
SA Real Estate Investor Magazine JULY/AUGUST 2020 39