Renico Construction- March Newsletter

Over the past few days, the entire world's attention has been focused on the conflict in Ukraine. One can only hope that sanity will prevail and that the situation will not escalate into a full-scale war where countries are forced to side with either country. Millions of people are directly impacted by this unfortunate turn of events and many innocent lives have already been lost. We can only hope and pray that peace will return to the region.

Once again, emerging markets around the globe have not been spared as the economic shockwave sent ripples through world markets. With the price of Brent Crude surpassing the $100 per barrel benchmark, South Africans have had to brace themselves for record high fuel prices. This will most definitely lead to not only increases in transport but also food and related goods. The Russian Central Bank today hiked their key interest rate from 9,5% to 20,0% in a bid to bolster their currency during these turbulent times. It is to be expected that our interest rates will also be increased during the Monetary Policy Committee's next sitting on the 24^th of March.

With the rise in commodity prices, manufacturing and building costs are only going to move in one direction. It is surely therefore a clever idea to purchase a home off-plan from a reputable developer as soon as possible as the property should be worth more once completed a few months later.

By month-end we will be delivering all first phase Mooi Land homes within the de Land Estate in Potchefstroom to their new owners. Quite a few sales within the second phase have also already been concluded and construction to the twenty-four simplex homes within this second and final phase has now commenced.

After the record rainfall received earlier this year, many construction days at our Brendavere Estate in Fourways were initially lost. I am glad to report that we are back at full production on site and that there are currently no foreseeable delays to the stipulated occupation dates.

Impressive progress was made in the construction of our Featherstone development during the past 4 weeks. As the 30-unit development quickly takes shape against the Craighall skyline, interest in the development has surged. There is no substitute for quality housing in such a suitable location!

With the first phase of our Welverdiend project nearly sold out, construction to the following phase will also commence this month. Welverdiend specifically targets clients 55 years of age or older, who no longer require large homes on even bigger stands where maintenance and upkeep is a constant headache. The Welverdiend simplex homes offers a low-maintenance, lock-up-and-go lifestyle within a secure estate. Now that is exactly the environment in which one's golden years should be spent!