Redefine Properties is making a foray into high-rise apartments next year and has chosen the growing cosmopolitan area of Rosebank, Johannesburg as its launch pad.
Demand for residential properties is expected to shift many property funds' resources. Redefine, which is the second biggest listed South African-based property company will launch Park Central on 5 February next year.
Park Central is on the corner of Baker Street and Keyes Avenue in Rosebank.
Redefine is considering building the 400-plus unit development, which will be marketed by Pam Golding Properties.
Redefine already has exposure to residential properties, having last year bought a 51% stake in Respublica, a student housing developer which provides student housing.
Redefine's move to buy and/or develop residential property comes while there are concerns that office and industrial properties will struggle with vacancies in a struggling economy next year and that retail properties, traditionally the most defensive, will also come under pressure from indebted consumers.
Chairman Marc Wainer said at the release of Redefine's financial results for the year to August that there were concerns that rising interest rates would have an effect on the performance of retail centres. "There are also fears that interest rates will rise more aggressively next year after the rises were more subdued this year than expected."
Only about 2.5% of listed property in SA is residential in nature.
This is compared with about 15% in developed markets and 25% in other developing markets.
Appealing to a more discerning buyer
Park Central is designed to appeal to a "more discerning buyer", Pam Golding Properties said.
Apartments will become available for sale in February next year at the starting price of R1.75m.
Park Central is located near the Mall of Rosebank, which was recently revamped by Hyprop Investments.
Pam Golding Properties said Park Central would offer New York-style living. "An incredible opportunity for those wanting to enjoy the buzz of city living complimented by the welcome greenery of sky gardens. Apartments for sale in Park Central offer New York-style living in the heart of Rosebank," it said.
"Home seekers can look forward to a choice of more than 400 units with options ranging from one bedroom, two bedrooms or the more luxurious choice of penthouse apartments," it said.
The Park Central development would also include 30 sky gardens, a clubhouse, pool and entertainment areas, a coffee shop, bar and restaurant, along with creche and gym. More details will be released next year.