Standard Bank : partners with City of Johannesburg and Calgro M3 to help reduce the inner city housing backlog

11 November 2014

Standard Bank Group has partnered with the City of Johannesburg and Calgro M3 to develop 5,327 housing units to help South Africa's largest city reduce the housing backlog in the inner city and surrounding areas.

The development forms part of the city's Housing Policy of "Breaking New Ground". The South Hills development is located 6km south of the Johannesburg's central business district brings to reality the shift in policy from settling families on the outskirts of the city to bringing families closer to amenities, their places of work and public transport systems.

The 199 hectare South Hills housing initiative will provide housing units across the fully subsidised, social, rental and affordable housing bands over the next five years. In addition, land for two schools, crèches, churches, sports facilities and parks have been provided and will include the rehabilitation of the existing public swimming pool and park. The project is a medium density infill development providing quality and secure housing at prices that many lower income earners can afford.

"The City of Johannesburg has a long standing relationship with Standard Bank and the fact that we have been able to partner with them and Calgro M3 to develop the South Hills project, is testament to the potential that public private partnerships have to unlock value in the city's property landscape," says Johannesburg Executive Mayor, Parks Tau.

"This project is about driving transformation and looking at closer integration across the different historic communities, ultimately for the benefit of the residents who reside in these parts of the city," says Mayor Tau.

Standard Bank Group was awarded the project as part of a proposal call to the major banks in keeping with a policy of encouraging the large financial institutions to play a role in housing developments of this nature. South Hills is estimated to have a value in excess of R1.95-billion and will take five to six years to complete. The CoJ will invest an additional R750-million in the form of grants and subsidies into the project between now and 2020, the development's scheduled completion date.

The South Hills project will see approximately half of the 199 hectare precinct, transformed into a modern, residential district comprising 2 242 fully subsidised BNG (Breaking New Ground) units; 1,560 social, FLISP (finance linked individual subsidy programme) and GAP housing units and 1,525 freehold affordable housing units.

"This development is an excellent example of how banks can partner with municipalities and developers to provide more affordable housing opportunities in residential neighbourhoods closer to the inner city," said Kenny Fihla, Global Head of Client Coverage at Standard Bank. "We believe this project will go a long way towards enhancing the COJ's ongoing efforts to change the face of the suburban living spaces to the south of the city centre."

The South Hills project will include housing for individuals or families earning from R0 to in excess of R15 000 per month, offering a housing solution according to need and financial capacity. Positioned in close proximity to Johannesburg's CBD, the South Hills project allows substantial access to business nodes.

"This development will not only provide modern and affordable housing stock for residents living south of the CBD but will also help reduce their transport costs to and from work," said Derek Steyn, Executive Director at Calgro M3.

"Its proximity to work and business opportunities in the city centre make South Hills a flagship project and we hope it will serve as a model for future integrated housing initiatives in other parts of the city."

To make provision for the predicted increase in traffic, construction plans for major road upgrades as well as opening up road links to connecting suburbs are in place, in addition to the execution of a major sewer and water supply upgrade.

The South Hills project will leave approximately 100 hectares of the original land intact, to be further developed into park facilities for community leisure and sports activities, resulting in an area roughly the size of Johannesburg's Delta Park.