The Development Bank of South Africa (DBSA) is to contribute R55-million to fund the municipal services for a middle-income housing development in Polokwane, Limpopo, it announced on Tuesday.
”DBSA will fund the installation of the necessary municipal services and infrastructure on the land so that the stands are fully serviced when construction of the houses commences,” said Helge Switala, DBSA’s investment officer on the project.
DBSA’s contribution will finance the development of roads, water, sewerage, electricity and storm-water drainage infrastructure at Extension 28 of Polokwane — also known as Serala View.
The contribution follows the signing of a loan agreement with the developers, Polokwane 28 Joint Venture, in October last year.
Polokwane 28, established exclusively to implement the project, is a partnership between black-empowerment property investment company Matome Maponya Investments (MMI) and a family investment trust.
Polokwane 28 Joint Venture chief executive Kholofelo Maponya said the project is aligned with the Polokwane Municipality’s Spatial Development Framework Plan and Integrated Development Plan, both of which prioritise increasing development of middle-income housing to address the growing demand.
”Since becoming the capital of the province of Limpopo, many civil servants have moved from the previous homeland administrations to the city,” he said.
Encroachment of the CBD into the residential areas of the old town has resulted in many houses being transformed into office buildings, further reducing the available housing stock.
”Household economic improvement has also led to a migration of families from rental accommodation through low-income areas to middle-income homes in the suburbs,” said Maponya.
Switala said installation of municipal services has started and more than 80% of the stands in the first two phases have already been sold.
Serala View has more than 700 residential stands as well as stands zoned for commercial and social activities. — Sapa