Elan Investments commits to PA BetterBond
KwaZulu-Natal lifestyle developer, Elan Investments has concluded an agreement with mortgage origination company PA BetterBond for the homeloan processing of some 7 000 residential units planned for market delivery within the next 12 months.
Both parties have placed a total value on the contract of more than R10,5 billion.
Announcing the contract at a function in Johannesburg over the weekend Rudi Botha, CEO of PA BetterBond said the agreement had been struck on the basis of “mutual benefit to both parties” with both companies complementing each other’s core business.
The agreement is believed to be the largest ever between a residential developer and a mortgage originator and was powered by PA BetterBond's infrastructural ability to offer a full in-house homeloan consultancy service.
As a result of PA BetterBond’s specialisation in processing homeloan applications in new developments, particularly in the field of tracking applications and client reporting systems the company was currently contracted to more than 100 developers in the Western Cape.
Botha expected the contract to move into full momentum toward the end of the year with Elan Investments’ launch of more than 4 500 stands in their newest developments on KZN north coast and in the province’s midlands.
Botha said the new business could increase PA BetterBond's monthly homeloan placement from a current consistent R3,2 billion for the first four months of the year to a monthly level closer to R4 billion.
Market conditions remained exceptionally good in the countdown to the end of the first half although a purchasing slowdown was apparent in the luxury and super-luxury markets, but this had not affected PA BetterBond’s figures because of its concentration in the middle and lower middle markets. Singling out the Western Cape, Botha said the region had recorded another record month in grants of R840 million in May and was expected to breach the R1 billion monthly target during the third quarter. Business in the lower million rand price range was literally still booming.