After some initial delays, a housing project in the leafy suburb of Auasblick is back on track by securing N$134 million in funding provided through a combination of debt from the Development Bank of Namibia and equity from Mergence on behalf of GIPF.
The development is taking place in two phases: Phase one includes 118 erven, of which 114 are single residential, while the others are designated for townhouses and businesses.
The single residential units and the townhouses will cater for middle-income and upwards buyers seeking a secure and attractive living environment close to the city.
The main contractor, Namibbeton, in August 2021 commenced works on Phase one.
Windhoek Consulting Engineers and Hangala Properties are the engineer and project manager, respectively.
The project oversight is being exercised through a project committee, which includes key stakeholders, including representatives from the City of Windhoek, the developer, financiers and the project engineer.
Sinco Investments Sixty One (Pty) Ltd, trading as PPH Auasblick (developer), signed a Public Private Partnership (PPP) development agreement with the City of Windhoek in 2017 to develop services and infrastructure for a 57-hectare housing development at Auasblick Extension 1.
Sinco is majority-owned by Hangala Group, with other shareholders being Preferred Investment Property Fund, Paua Properties and Zeal Properties.
Phase one pre-sales were launched in November 2019 – and despite the Covid pandemic and related disruptions, almost all erven have been subscribed to.
In view of the project’s importance for Windhoek’s housing and urban evolution and the substantial progress to date, the project committee decided on an official public launch on 21 October 2022, presided over by the Minister of Urban and Rural Development, Erastus Uutoni, and Windhoek mayor, Sade Gawanas.
The launch is expected to include speeches by senior DBN and GIPF representatives.
The ceremonies are scheduled to be followed by an open day for the public from 14h00 onwards, at which pre-sales for Phase two are also anticipated to be launched.
In announcing the October ceremony, the City of Windhoek’s co-chair of the project committee, Benny Amuenje, said “the City entered into a PPP with a wholly Namibian-owned company with notable experience in the property development space to help address the need for affordable housing. It has been a pleasure to work with Sinco on this Project, and we appreciate the professionalism and transparency with which the Auasblick Extension 1 Project is being managed. We are looking forward to the fast and smooth conclusion of this project, which will significantly address housing shortages in the city”.
Asked for his comment, the executive chairman of Hangala Group and chairman of Sinco Leake S Hangala, said: “Hangala Group, with its partners in Sinco, are pleased to be associated with the City of Windhoek in this development. Contrary to some perceptions, the city has been fully open, supportive and effective as a partner in this project. It is of course a pleasure for Hangala Group to bring its experience and expertise in housing and land delivery as well as in project management to bear, through our subsidiary Hangala Properties, which has been active across the country, including such towns as Otjiwarongo and Otavi. We were not only able to raise the necessary capital for the project but also to assemble a top team of engineering, project management, accounting, land surveying and other resources to execute it”.
Similar positive sentiments were also expressed by the project financiers.
DBN CEO Martin Inkumbi stated, “DBN is pleased to be associated with the City of Windhoek as well as with an experienced developer in Sinco to alleviate housing needs in our capital city”.
Hileni Nghinaunye of Mergence said, “the investment is being made on behalf of the GIPF to have a positive impact on society – in this case, access to affordable land and the creation of new jobs for Namibians”.