Housing Challenge met through Successful Partnering

A partnership comprising Standard Bank, Bitol Developments and the City of Cape Town has won a prestigious Merit Award from the South African Housing Foundation for its Leo Mews project in Elsies River.

Part of a programme by the City of Cape Town to accelerate and stimulate the delivery of affordable housing to deserving households across the city, Leo Mews was the first project completed in the area in terms of an agreement between the City and Standard Bank, and the bank's chosen development partner Bitol Development.

The project won the award for its interpretation of the City of Cape Town's brief which required that aesthetically pleasing, affordable high density housing should be created for people in a manner that was socially and environmentally sustainable for all stakeholders. The cost of the units range from R237 000 to R254 000, enabling people with combined monthly incomes as low as R7 200 to own a home.

"The City is very pleased that this ground-breaking project has been recognized. It is a tangible symbol of the City's commitment to make the gap housing market a reality for households earning between R7500 - R10 000 per month", says Executive Mayor, Alderman Dan Plato.

"The City of Cape Town/Banks Co-operation Agreement was concluded on 16 May 2006. This was the first operational and tangible partnership between a local authority and the major national banks. The rationale underpinning the agreement is that the City allocates appropriate land to the banks to facilitate the development of affordable housing and the banks provide the finance and development expertise," Plato said.

"We realised that there were many people in Cape Town, including backyarders, who do not qualify for subsidised housing, but earn too little to afford to enter the conventional housing market. They earn less than R10 000 a month and neither the developers nor the banks cater for this market. We believed that the problem could be solved if a synergy could be created between affordable land being provided by the municipality and buy-in from banks and developers. Leo Mews proves that the concept is viable," Plato said.

"Standard Bank and Bitol met these criteria with Leo Mews by supplying housing that, apart from its price, would not be out of place in more up-market residential areas. The developer also spent considerable time helping residents in a nearby older area with maintenance and cosmetic changes that improved the entire area- reducing the contrast between the old and the new in Elsies River. As a result there is a strong sense of community between new residents in Leo Mews and established residents in the area," said Kevin Duncan, Managing Director of Standard Bank's Integrated Residential Developments division (IRDev)."

"The Leo Mews development sets new standards in the industry, being constructed in accordance with the Five-Star Green Building rating system. Each unit has a solar water heating system. There is a system for reclaiming grey water used for household purposes and storage, and a reclaimable water system is used for toilets and lawn irrigation. All units have been equipped with waste separation bins divided into compartments for glass, paper, aluminium, plastic and non-recyclable goods."

"We are proud of the Leo Mews development which is innovative, eco-friendly and provides accommodation to a segment of the population that has traditionally been excluded from quality accommodation because of affordability issues. This is an excellent example of what can be achieved when a municipality, financial institution and developer have a strong partnership."

"We believe that the development contributes significantly to the economic and social upliftment of the community," Duncan said.

---

Issued by:
Communication Department
City of Cape Town