Typical housing at Amalinda in East London where Inframax Developments will be project managing the next phase, Emerald Sky, for SOHCO.

With the securing of funding from the national and provincial governments for the East London’s Emerald Sky development at Amalinda, SOHCO (the Social Housing Company) has re-confirmed its position as a leader in the development of Social Housing in South Africa.

This forthright statement was made recently by Michael Maclachlan, the Inframax Developments project manager for the Emerald Sky project.

“In every social housing development,” said Maclachlan, “there are three key elements: the social housing institution that develops and holds the rental stock, the financing and funding bodies, and the delivery agents – the project managers, professional consultants and the contractors.

“By operating on a turnkey basis, taking on the risk and making itself fully responsible for the delivery and handover of the rental stock to SOHCO, Inframax makes it possible for SOHCO and bodies like it to avoid all danger of financial loss and to focus on their core business, the management of the scheme.”

Heather Maxwell, chief executive of SOHCO, says her team’s success in social housing stems from SOHCO’s ability to inculcate a culture of regular rental payments which keep its developments comfortably in the black. It also provides the funding for maintenance and ensures that the rental units are desirable to qualifying tenants – wherever they are developed.

“For SOHCO to achieve this,” she says, “the delivery agents have to deliver a quality product, within budget and on programme. Inframax’s experience, management capabilities and strong team of professionals and contractors have contributed largely to achieving this.”

The new R47 million contract at Emerald Sky is for 176 units. This phase is a follow on from the successful R109m 480 unit development currently in delivery. The contractor here, Heaton Construction, has been on site since October 2008 and has since July 2009 been handing over units at a rate of 40 to 48 a month.

Maclachlan said the appointment of Heaton for the follow on phase has resulted in economies of scale being achieved that would otherwise have been difficult. It also made it possible to ensure that the delivery of units continues seamlessly and at a good pace. The scheme will be completed by the end of 2010.

Like their predecessors, the new units will all be in three or four storey blocks with no lifts, but because of the slope of the site occupants will not have to climb more than three flights of stairs.

“The apartments at Emerald Sky come in three sizes, bachelor, one bedroom and two bedroom. Floor areas vary between 30m² and 42m², and the design ensures that no internal space is wasted,” says Maxwell.

“At Emerald Sky the units rent out at R650 to R2 200 a month. This means that applicants have to earn between R2 500 and R7 500 a month. On SOHCO’s previous Amalinda projects, completed between 2003 and 2005, there has always been a waiting list of potential tenants,” says Maxwell.

SOHCO has plans to develop a further 2 500 units over the next few years in Durban, Cape Town, East London and Port Elizabeth.

Maclachlan said the standard of finishes throughout the units handed over so far has been excellent.

“This is the most worthwhile form of property development,” he said, “because the need for satisfactory homes for people earning between R2500 and R 7 500 is really dire at present.”

Mr Zithulele Rayi, Director of Housing in the Eastern Cape’s Provincial Department of Housing, has said this type of development ideally meets the needs of a large section of the rapidly increasing urban population throughout South Africa. Emerald Sky, he said, is particularly well sited in relation to the East London CBD and industrial areas.

Maclachlan said although SOHCO’s plans have still to be confirmed, it is possible that a final phase of 120 units could be developed at Emerald Sky, this time for sale on a sectional title basis.

Call Michael Maclachlan on 021 530 5760 or email mmaclachlan@inframax.co.za.