Company says Inframax’s faith in KZN proves justified

Cape Town headquartered Inframax Developments’ decision to focus on KwaZulu Natal four years ago has proved to be wise one, according to Inframax director, John Weaver.

Airing his confidence in the province during a Cape Town interview this week, Weaver said that moving into KZN’s middle and upper middle bracket residential markets, in spite of a difficult start, has been one of the company’s better decisions. “Every project we have launched there has Rrecorded fast sales and met our return expectations.”

Recapping on Inframax’s developments in KZN, Weaver listed seven developments, with a total value of R314 million, now under construction. These, he said, had followed on from some six projects with a total value of only R19 million.

“The full current list,” he said, “includes The Bay at Ilala Ridge near Umhlanga Rocks Drive (a joint venture with TCI), Portofino at Shelley Beach and Indigo Bay at Margate (two sea fronting projects for holiday makers and retired people), Langford Country Estate at Hillcrest and The Lighthouse, The Zone and The Sentinel in Moreland’s much vaunted Umhlanga Newtown Centre, more than once described as the best decentralised office and mixed use precinct in South Africa today.”

Weaver said Inframax had originally identified three areas in KZN with successful prospects. These were the Hillcrest/Upper Highway precinct, Umhlanga Ridge and the South Coast. The North Coast, he said, was attractive, but much of the land there, in Inframax’s view, was already highly priced.

“In KZN,” said Weaver, “it seemed to us three to four years ago they were lagging behind the property boom but were likely to catch up. This analysis has turned out to be correct. At the time it meant that land could still be acquired for a reasonable outlay, enabling us to sell our units at attractive end prices.”

The residential market revival predicted by Inframax at that stage, said Weaver, would, they believed, be fuelled by the growth of business facilities at Umhlanga (for which nearby residential accommodation was essential), a pent-up demand for holiday accommodation on the South Coast from people who had traditionally visited this area but had been temporarily disenchanted by the political/violence problems encountered there and by the low interest rates and investors’ disappointment with the equity markets.

Over the next two years Inframax’s focus on KZN, said Weaver, would result in this area providing over 50 percent of their turnover.

In Cape Town, the company continues to be involved with entry level housing at Sarepta and on two new projects at Muizenberg, one about to be launched, but much of their action in Cape Town has taken place through Inframax Investments buying properties for long-term returns.

This section of the group has now grown its portfolio to a value of more than R60 million. To be included shortly in the portfolio is 650m2 of ground floor retail space included in Inframax Developments’ Umhlanga Newtown residential developments.

In Gauteng Inframax is involved with three developments in the entry level bracket. These have a total value of R165 million.

Weaver said that Inframax will continue to operate in KZN, but will now be looking for smaller niche developments rather than the large projects that could run for several years.
Loading comments
More news articles
Guidelines to securing a home loan
29 May 2018
Many young South Africans are working hard to achieve their dream of purchasing their first home. However, the process can be challenging due to the daunting application process, which can take up to 2 years and is often enough to discourage prospective buyers.
read more
Things you should consider before upgrading to a new home
23 Apr 2018
The thing about the property ladder is that at some point in our lives we all have reason to want to climb a rung or two higher. Sometimes, it’s because we’ve outgrown our previous dream home, or because we want to be in a better neighbourhood that’s closer to work or to schools. Sometimes it’s because our circumstances have changed, and we’re taking care of elderly parents or relatives. Sometimes, it’s just because we want a property that reflects the financial status our hard work has won.
read more
Cape Town
Cape Town is home to one of the most cosmopolitan communities in the world and certainly lives up to its title as the Mother City. From its beginnings as the port for the Dutch fleets, Cape Town has evolved into one of the most modern cities in South Africa and the African continent.
read more
It may be the smallest of the nine provinces but Gauteng is definitely home to some of the most sought-after properties in the country. Properties in Gauteng is as varied as its residents - from inner-city apartments to country style small holdings and family homes in leafy suburbs. With many new residential property developments springing up all over the province it is worth the effort to expand your search to newer areas. Economic prospects in Gauteng has seen 22% of South Africa’s population live, work and play in only 1.4% of its landmass - which means that rental properties are in high demand in the metropolitan areas. With the construction of Gautrain many tenants now can extend their searches into other areas which are serviced by the Gautrain bus services.
read more
KwaZulu Natal
South Africa’s playground, KwaZulu Natal, is home to what many call the endless summer due to its subtropical climate. Not only are residents spoilt for choice with stunning coastal properties along the Hibiscus Coast but it also boasts with some of the most picturesque country homes in the Midlands. With properties as eclectic as its people, it won’t be hard to find your dream home.
read more