Puleza
August 30th, 2006, 06:33 AM
http://www.themast.co.za/gallery/images/enlargements/impressions/mast_full-front.jpg
http://www.themast.co.za/gallery/images/enlargements/impressions/mast_right-view.jpg
http://www.themast.co.za/gallery/images/enlargements/impressions/mast_top%20apartments_right%20veiw.jpg
http://www.themast.co.za/gallery/images/enlargements/impressions/mast_looking%20up%20view.jpg
Project Framework - Introduction
There is a general consensus that the Point area will be one of the most exciting residential and commercial areas in the country in which to invest, live, play and do business in the medium term, but like many ambitious inner city waterfront schemes both in South Africa and abroad, there will be a difficult period before the area is fully developed. There is much which has been planned for the area and the enormous investment that has been made already by the city (Ushaka Marine World is one example of this), and the investment being made by the private sector as well as Portnet and the Harbour authority that will ensure the success of the area. The area will be a building site for the next 3 years, before the benefit of the regeneration and rehabilitation of the area is noticeable.
In planning for 'The Mast' we have challenged traditional thinking in our approach to developing a building of this nature. There are many limitations with traditional sectional title development of this nature; most significant is the risk to both the developer and the institution that would fund such a project. Some of these are listed below:
Big projects take time to complete and market fundamentals change. The MAST will take 3 years before any unit is completed.
Traditional developers and the financiers carry almost all the risk as the purchaser can 'scape' his obligation by not taking transfer of the unit upon completion, forfeiting only his deposit.
Developers need to make a substantial return on their investment to substantiate such a risk, pushing the retail price of the unit to an unsustainable level in this current market.
The financial institution is also at risk for the entire period, and in the event that the development is a failure, are left with little security in that the personal liability for any shortfall falls on the developer, who is generally over-extended already.
There is no perceived value proposition to potential buyers and investors, because the selling prices are unattractive in today’s market.
http://www.themast.co.za/gallery/images/enlargements/impressions/mast_right-view.jpg
http://www.themast.co.za/gallery/images/enlargements/impressions/mast_top%20apartments_right%20veiw.jpg
http://www.themast.co.za/gallery/images/enlargements/impressions/mast_looking%20up%20view.jpg
Project Framework - Introduction
There is a general consensus that the Point area will be one of the most exciting residential and commercial areas in the country in which to invest, live, play and do business in the medium term, but like many ambitious inner city waterfront schemes both in South Africa and abroad, there will be a difficult period before the area is fully developed. There is much which has been planned for the area and the enormous investment that has been made already by the city (Ushaka Marine World is one example of this), and the investment being made by the private sector as well as Portnet and the Harbour authority that will ensure the success of the area. The area will be a building site for the next 3 years, before the benefit of the regeneration and rehabilitation of the area is noticeable.
In planning for 'The Mast' we have challenged traditional thinking in our approach to developing a building of this nature. There are many limitations with traditional sectional title development of this nature; most significant is the risk to both the developer and the institution that would fund such a project. Some of these are listed below:
Big projects take time to complete and market fundamentals change. The MAST will take 3 years before any unit is completed.
Traditional developers and the financiers carry almost all the risk as the purchaser can 'scape' his obligation by not taking transfer of the unit upon completion, forfeiting only his deposit.
Developers need to make a substantial return on their investment to substantiate such a risk, pushing the retail price of the unit to an unsustainable level in this current market.
The financial institution is also at risk for the entire period, and in the event that the development is a failure, are left with little security in that the personal liability for any shortfall falls on the developer, who is generally over-extended already.
There is no perceived value proposition to potential buyers and investors, because the selling prices are unattractive in today’s market.