Renico Construction Newsletter- June 2023
Category Newsletters
Although a repo rate increase was expected in May, the second successive 50 basis point increase for this year was an unwelcome surprise. However, despite the fact that the hike was higher than expected, the current repo rate is still below the weighted repo rate average of 11,92% calculated between 1998 and 2023.
1998 marks the date on which I founded both Renico Plant Hire and Renico Construction. This was also the year where the repo rate peaked at an astonishing 23,99%! Now 25 years later our repo rate is less than half the historic high. While there are many other social and economic factors causing problems today, the chances are that we won't be seeing such high rates anytime soon.
As mentioned, Renico will be celebrating its 25-year anniversary this year. Just as the company was established during record high interest rates, we once again find ourselves in trying times. It is especially difficult to conduct business during weak economical times, but as all mainstays of industry know, business is cyclical and today is no different to 2018. The South African economy will stabilize again and once this happens; it will bring new opportunities to the fore. I for one am looking forward to the next 25 years in business, not only to build a stronger Renico but also to bring more quality housing to the South African market.
FEATURED RESIDENTIAL PROPERTIES
After being sold out at Brendavere Estate at the end of May, we unfortunately had a cancellation of one of the pending sales. Thus, we are back to our last available home within this stunning cluster development in Fourways! It is only a matter of time before we will have the final unit signed up. Be on the lookout for the celebratory Sold-Out signs going up soon.
With most of the external work completed at our Rainhill show block in Linden, there is still a bit of internal work to be done before we will have a completed show unit ready. Personally, I am very excited about this project, my team pulled out all the stops with the planning to make the entire Rainhill loadshedding free! I believe this will in time become the benchmark for all future Renico residential developments.
We are also down to the last 20 available homes at our Ndalo security estate development in Alberton. With weekly sales being concluded on site we are well on track to being sold out by August. This will also trigger the launch of our next residential development in Albertsdal which will also offer simplex homes with either a two- or three-bedroom configuration.
LAUNCHING SHORTLY
I am pleased to announce that we have made substantial progress with the design of our Fernhill project in Bryanston. Once we are 100% satisfied with the design, our graphic designers will be tasked with the 3D rendering to give prospective clients a good idea of what the homes will look like, once completed. All homes within the Fernhill development will also be exempt from loadshedding, thanks to the installation of an integrated back-up power supply. More info on this exciting development will follow in my next newsletters.
Author: Nico Louw
