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R6.2bn Leratong City housing and mixed-use development

30 Mar 2016

A R6.2 billion new Gauteng housing project – the Leratong City integrated nodal development – is set to get under way in Leratong, Mogale City, in a joint development by McCormick Property Development, Calgro M3 and Sasuka Logistics Services. 

"The project is aimed at transforming a disadvantaged former mining area into a more vibrant community where housing, shops, schools, and places of work are integrated in a single, mixed-use neighbourhood,” says Thamsanqa Mfundisi, Executive Chairman of Sasuka. “This development will focus on quality walk-ups with a secure attractive living environment. It will capitalise on the location and become a trendsetter in a very large residential and commercial development project along the new Main Reef Corridor."

Situated across the road from the existing Leratong Hospital, the first phase will consist of 15 000 residential units, an intermodal transport hub, a government precinct as well as a 30 000m2 regional mall. The total development extends over 400ha and construction of the bulk infrastructure is expected to commence by June 2016. 

Located on two major regional movement routes that form part of the primary movement network of Gauteng Province, the Leratong City project has been selected as an area for Neighbourhood Development Partnership Grant (NDPG) investment. It forms an integral part of a larger regional node set in the context of a previously disadvantage township area, which has the potential to transform into a high intensity regional node. 

The project will include the following units 4 200 fully subsidised BNG (Breaking New Ground) units;

8 300 GAP (Grass Roots Affordable housing), FLISP (Finance Linked Individual Subsidy Programme) and Social Housing (subsidised rental) units; and 2 500 freehold housing units aimed at the affordable housing market. 

Units will be available for families qualifying for fully subsidised units to families earning over R15 000 a month, resulting in a housing solution based on a wide range of financial capacity. Affordability and a variety of products were important considerations during the design process. 

To complement the housing and other facilities, essential social amenities such as crèches, a community centre, educational facilities and healthcare facilities will be developed. Other amenities will include mixed-use business centres, religious sites, various recreational parks and green spaces, as well as public sports facilities. Proximity of the residential units to the amenities has been taken into consideration in the spatial arrangement. 

A major benefit of this development lies in its location. Positioned across the road from the regional Leratong Hospital and at the intersection of major roads linking Mogale City, Soweto, Randfontein, Merafong, Roodepoort, Florida and Johannesburg, Leratong allows generous access to these business nodes. The reduction in travelling time and costs, and resulting increasing residents’ disposable income and leisure time is in line with Government’s drive to locate people in and around areas of work. This is further strengthened by the development of the significant commercial precinct within the development. 

To make provision for the predicted increase in traffic, the project will provide for the construction and improvements of major road upgrades, as well as opening up critical links to connecting suburbs. Plans are in place for the execution of a major sewer and water supply upgrade, in addition to the construction of a new electrical substation to support the development and surrounds. 

Calgro M3, together with local partner, Sasuka, has assumed a variety of roles in the project, including that of implementing agent and turnkey developer, contractor and marketer. 

“The project is facilitated by Calgro M3’s turnkey business model, where the work involved will be performed in-house, which keeps costs contained. A wide range of quality, well-priced residential products will be offered to a range of income earners. In addition, the implementation of this project will stimulate the local economy through the participation of the local community in the different phases of the project, in terms of Calgro M3’s local community-based employment philosophy,” explains Calgro M3 MD, Wikus Lategan. 

South Africa’s steadily rising population, combined with an influx of people from rural to urban areas, as well as a general inflow into Gauteng, means it is increasingly challenging to provide sufficient housing. Leratong City will go some way to meeting that demand. 

“Sasuka, a Mogale City-based black-owned and managed property development company is delighted to partner with Calgro M3 and McCormick Property in this ground-breaking development. The project is aimed at transforming a disadvantaged former mining area into a more vibrant community where housing, shops, schools, and places of work are integrated in a single, mixed-use neighbourhood,” says Thamsanqa Mfundisi, Executive Chairman of Sasuka. “This development will focus on quality walk-ups with a secure attractive living environment. It will capitalise on the location and become a trendsetter in a very large residential and commercial development project along the new Main Reef Corridor. The McCormick Property, CalgroM3 and Sasuka partnership has an unquestionable pedigree to deliver within the set timeframes.” 

“McCormick Property is pleased to have partnered with Calgro M3 and Sasuka for the roll-out of this significant housing development that will not only provide housing for thousands of families, but also provide increasing support to our development of the Leratong City Mall which remains a cornerstone of this exciting development. The project has taken an immense amount of planning and coordination and we are thrilled to see it finally take off,” notes Jason McCormick, the MD of McCormick Property. 

“The project also aims to revive the Chamdor Industrial area, making it accessible and attractive to potential investments. This will create more jobs, converting the unemployed into income earners and providing a market for rental and bonded housing units,” adds Mfundisi. 

The project heralds a new area within the West Rand region by providing a creative human settlement solution that is strategically aligned to National and Provincial Government policy framework. It further seeks to positively impact on socio-economic transformation challenges not only by providing employment and entrepreneurial opportunities, but also revitalising industry within the region. 

“Housing is central to a person’s existence and quality of life,” says Lategan. “Shelter is one of the most basic human needs. Stable, quality housing is essential to raising and educating future generations. We see this as both an opportunity and at the same time a responsibility to ending the cycle of poverty, and we are proud to be associated with this initiative.” 

For more information, visit www.calgrom3.com.

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