Renico Construction Newsletter- May 2023

The month of April is commonly known as a fairly slow business month due to its high number of both religious and public holidays. With careful planning, these can easily be converted into two separate long weekends. At Renico we believe that quality work comes from quality time off and we decided to give all our employees the additional "in-between day" off as well, enabling them to get maximum time to rest and spend time with their families, friends and loved ones. The sunny autumn weather of the past weekend was certainly conducive to lazing in the sun!

Winter certainly seems to be slow in arriving this year, and we can but hope the farmers are making full use of the extended good weather to the benefit of their crops and livestock since food inflation is currently the biggest driver of our consumer price index inflation. Earlier this month it was reported that our year-on-year food inflation had risen to a staggering 14%! Not only is this bad news for the consumer, who needs to place food on the table, but if it continues to increase it also does not bode well for the overall CPI inflation, dampening hopes of a reprieve in the current upward cycle of interest rates. Most South African consumers are currently under financial strain and another hike in the interest rate will increase this burden even further.

However, even during these tough economic times, sales are still being concluded on all our sites. The banks are currently offering competitive interest rates to all qualifying purchasers, and I am happy to report that both our Leano and Featherstone projects are officially sold out!

Activity in the rental market also remains elevated and will most probably continue to be the best performer in the residential segment of the market for the foreseeable future.

FEATURED RESIDENTIAL PROPERTIES

With more than 70% of homes already sold at our Ndalo residential development in Albertsdal, Alberton, proud families are taking occupation of their new homes every month. Here purchasers still have the opportunity to purchase a recently completed simplex home at 2022 prices, and furthermore save thousands of Rand on bond and registration fees.

We are down to our final two homes available within our Brendavere Estate in Fourways! Although all clusters are currently under construction the buyers of the last unsold homes may still pick the exclusive finishes to their future home. These purchasers will also have the privilege of taking occupation of their brand-new homes before Christmas this year!

Our construction teams have been busy at the Rainhill project in Linden, Randburg where we are hoping to complete our first apartments within the show block in the coming month. We recently surpassed the 10% sold milestone and, as is usually the case with new developments, I expect a further surge in sales once we have a completed and furnished show unit available for prospective clients to view. This will also be our first residential development which will be free from the negative effects of loadshedding!

LAUNCHING SHORTLY

We have almost everything in place to launch our next residential development in Albertsdal after selling out our Leano development and passing the 70% sold out mark at the neighbouring Ndalo.

The iThemba development will also offer both two- and three-bedroom simplex homes but there are a number of exciting changes that were made to the design to give the 96-home development a unique look and feel.