SA Affordable Housing March - April 2020 // ISSUE: 81 | Page 33

PROJECT
Several of the complete and let units in Phase 1.
are the same for the apartments in each development as we
perfect which finishes work best across our portfolio: subway
floor tiles; USB plug points; stove-oven-extractor combo;
granite tops; 600mm tiles; big windows; built-in cupboards.
Most developments have a free gym, soccer courts on the
roof, and laundromats.
“We try create communities in each building, with various
activities. We survey residents to find out what is important to
them, and then host seminars on that subject, for instance on
financial wellbeing or mental wellbeing, and we host regular
social functions to bring them together. They usually get a
good attendance.
“We test everything ourselves from the perspective of
whether we (the owners of the property) would like to live
there.” The reason for this, says Friedman, isn’t entirely
altruistic, but due to the cost of having vacant units. “The cost
of a unit being occasionally vacant because we can’t find
tenants, over the long term (ten to 15 years), would far
outweigh the upfront cost of having more luxurious/ costly
finishes,” adds Friedman.
"The specs are the same for the apartments in
each development as we perfect which finishes
work best across our portfolio."
Rentals vary from R4 800 for a bachelor unit to R7 500 for a
two-bedroom unit, which Friedman describes as amongst the
most affordable rental in areas such as Bramley, Randburg and
Sunninghill – “below that would be the Gap level with some
form of government subsidy”.
“Often the buildings we buy are not pretty, being older
commercial office buildings, but the tenants don’t care as long
as the fittings inside the building are great. We would rather
we spend the money on the interior – lighting, biometric
security and brand identity than on renovating the exterior,
because tenants spend little time looking at a building and
more time living inside of it.”
The mix of units within a development is often a function
of the site layout and zoning restrictions such as the number
of parking bays allowed. “The Council doesn’t differentiate
between bachelor units and two-bedroom units, so if parking
is limited it incentivises larger units. In a location such as a
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MARCH - APRIL 2020
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