14 September 2007

THE City of Cape Town is to sell 25 ha of land, at R100 000 per hectare, to a Khayelitsha Business District (KBD) housing initiative for the development and onward sale of 1 200 houses.

KBD Housing is a housing development company which is part of the institutional framework approved by the City for the development of the Khayelitsha Central Business District. As part of this initiative, a trust was established to represent community interests.

The objective of the Khayelitsha Community Trust (KCT), which is a municipal entity in terms of the Municipal Finance Management Act, is to facilitate the upliftment of Khayelitsha by developing a business district with retail, industrial, municipal and office components as well as facilities and amenities for the use of the community.

The land is part of the original 72 ha which had been earmarked for the KBD. It is situated between Spine Road, Walter Sisulu and Govan Mbeki Drives, and is adjacent to the sports oval in Khayelitsha.

"This development flows from the 2004 City-KCT agreement that resulted in the construction of the Khayelitsha retail centre," said councillor Simon Grindrod, Mayoral Committee Member for Economic and Social Development.

"The initial construction cost of the centre was around R100 million and its value was recently estimated at R130 million. Once fully paid, the centre becomes a community asset of Khayelitsha. The direct sale of the land to KBD Housing will avoid double transfer costs which would otherwise have to be borne by the end purchasers of the homes," he said.

Agreements for the construction and full project funding from Rand Merchant Bank, a key private-sector partner in the development, have already been signed.

"Proceeds from the land sale will be used for further housing developments. The City is to make available the bulk and link services to the site. Currently the land is unserviced and still needs to be rezoned and subdivided for the proposed housing development," Grindrod said.

A show village where potential buyers will be able to indicate what type of house they wish to purchase is already under construction in Water Sisulu Drive. Construction of the houses will be predicated on the sizes, finishes and prices for which demand is established. Potential buyers will be offered both a purchase option and a rent-to-buy option.

The public sector has already invested more than R50 million in the KBD to provide bulk services, roads, a regional magistrate's court, offices for the Departments of Social Development and Home Affairs, a swimming pool complex, a cricket oval and a club house.

Already under construction are a multi-purpose centre, a transport interchange and the first phase of the informal trading facilities. Public walkways and civic squares are being landscaped. Construction of a 230 bed district hospital will start in 2008.

"The Khayelitsha Business District will eventually offer an integrated development where residents will have easy access to commercial, institutional and recreational opportunities close to their homes," said Grindrod.

Source: capetown.gov.za