MY STORY
Investing in Inner City
Residential Properties
Ramalamula crafts downtown property into shape
S
olomon Ramalamula is a man driven by strong
principles and the urge to serve his community.
With a background in law enforcement and an
enviable track record in the property management
realm, his company known as Take Shape has taken
the task to convert a run down clothing factory into
a world class residential space.
The road to conversion
During 2014 Ramalamula recognized an opportunity
in Hollywood Centre situated at the corner of
Nugget and Helen Joseph Street (previously
President Street) in downtown Johannesburg. A
shadow of its former self housing a fully fledged
clothing manufacturer, the building had become a
haven for break-ins and was to Solomon the ideal
canvas awaiting a masterpiece on it. “When I found
this property it was completely closed except for 2 to
3 active factories on some floors”, Ramalamula says.
His determination led to the re-activation of a
long held relationship with downtown property
financier, TUHF and the process of conversion
started in 2015. The total conversion cost added
up to R22 million and involved putting together a
quality team of Quantity Surveyors and Engineers.
Still relatively fresh in his memory, Solomon gives
details, “We decided to turn the area meant for truck
off loads during the building’s factory days into an
office space for our Property Management company,
because we wanted to be close to the property we are
managing”
“The largest part of the project entailed the
conversion to residential space, but this required us
to drill the core of the building. This was done so that
there could be natural light and ventilation coming
in for our tenants and a bottom base where they can
hang their laundry.”
“Another added benefit to the core drilling is that
we could create more units and make use of the space
efficiently.” Today, the building has 101 apartments
in total of which are a mixture of bachelor, single and
2 bedroom sized spaces. At this initial stage, there
currently are 56 units let with the balance due for
uptake as soon as the lifts have been completed, the
last outstanding element of this 2 year journey.
It’s all about knowing what your tenants want
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Residential Handbook 2016/17
Ramalamula’s experience in the property market has
afforded him insights into different market segments
and consumer behaviours patterns. The innovative
design was inspired by a visit to Holland, where
Ramalamula learnt from their efficient and attractive
social housing designs. In regards to Take Shape’s
acquisition of Hollywood Centre the approach
towards attracting a discerning tenant had to be
practical and simple
“We have made sure that rent is affordable for our
potential tenants, who are people who make a living
as security guards, shopkeepers, bank tellers, etc.”, he
explains. Ramalamula adds, “in comparison to most
residential managers in the area, we are the cheapest
and our apartments are bigger to accommodate these
men and women who work in the city.
The same knowledge about his customers also
informed the design choice of apartments, “bright
accent colours complimenting varnished face brick
work instead of painted walls is practical and allows
for a fast turnaround time between tenants, not
needing repainting. Our tenants place high priority
on functionality and space. We offer a 37 square
meter bachelor apartment with a two plate stove as
opposed to a traditional one mostly seen in other
residential spaces, affording the tenant more room
to arrange and pack their belongings as they see fit.
The future takes shape
Alongside the residency of tenants, the building
currently has a mixed use element with retail shops
on the ground floor attracting feet from the street.
This is in the form of a supermarket and a linen shop
that is due for opening later this month. According
to Ramalamula there are also plans to interest a
reputable retail brand for the last remaining 400
retail square meters, “due to our prime location,
we are looking to acquire a large retailer that will
occupy the space over a long term lease. This retailer
should enjoy the immediate environment since we
find ourselves in the popular fashion district. We
hope through the occupant brand we will be able to
increase the building’s value.”
RESOURCES
TUHF; Take Shape
www.reimag.co.za