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Redefine has a number of developments and refurbishments
in progress. All developments require the approval of
the investment committee, and any development above the
mandate threshold of the investment committee requires
board approval.
Highly skilled managers are employed for these projects,
and Redefine enters into joint ventures where opportune.
Redefine is engaged in two categories of development:
• Developments for long-term investment
• Developments for trading
Developments for long term
investment
These include office, retail or industrial developments
in which land is acquired and the process from rezoning
through to completion is managed by the development management
team at Redefine. Redefine may acquire land for future
development when opportunities arise. All holding expenses
are capitalised to the cost of the land. Investment in
land for future development must be approved by the investment
committee and is limited to a maximum of 5% of the value
of the total property portfolio.
Developments completed or in progress at 31 August
2010
Redefine has various developments which were completed
during the financial year under review or which were in
progress at year-end, on which an estimated R20,2 million
remains to be spent.
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Initial |
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yield
on |
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Projected |
project |
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|
To
be |
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|
GLA |
total
costs |
cost |
Completion |
% |
spent |
| Development |
Location |
m2 |
R000 |
% |
date |
complete |
R000 |
| Festival Town Square |
Kempton Park |
8 436 |
77 500 |
8,0 |
Oct 2009 |
100 |
- |
| Alberton Mall |
Alberton |
5
458 |
16
500 |
10,0 |
Mar
2010 |
100 |
- |
| Vaal Walk |
Vanderbijlpark |
2 515 |
10 000 |
12,0 |
Apr 2010 |
100 |
- |
| Terminus |
Klerksdorp |
9
129 |
47
000 |
12,5 |
Oct
2010 |
91 |
4
100 |
| Ottery Centre |
Cape Town |
4 474 |
8 920 |
- |
Oct 2010 |
50 |
4 500 |
| Redfine Boulevard |
George |
2
000 |
4
600 |
25,0 |
Oct
2010 |
30 |
3
200 |
| Sable Square |
Cape Town |
9 603 |
11 948 |
24,0 |
Oct 2010 |
30 |
8 400 |
| Total |
|
41
615 |
176
468 |
|
|
|
20
200 |
Developments for trading
Redefine is engaged in two developments
for trading purposes. Trading opportunities are subject
to stringent criteria and require investment committee
approval. These trading opportunities remain a minor part
of Redefine’s business and profits will not account for
more than 5% of Redefine’s operating revenue. It is Redefine’s
intention to phase out trading developments over time.
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Redfine |
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Projected |
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|
ownership |
GLA |
total
cost |
Completion |
Sold |
| Development |
Location |
% |
m2 |
R000 |
date |
% |
| Upper Eastside Phase 2* |
Woodstock |
50 |
20 738 |
166 086 |
May 2010 |
66 |
| Buchanan Square |
Salt River |
100 |
20
815 |
121
910 |
Jun
2010 |
58 |
| Total |
|
|
41
553 |
287
996 |
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* Reflects total GLA of the property and Redefine's
share of costs
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