The development of a luxury new R1 billion private residence for students is on the cards for a prime site just a stone’s throw away from Stellenbosch University and will be launched to market later this month (October).
Backed jointly by local commercial property investors and developers Buffet Investments, KLT, HackProp, Johan Van Der Merwe and Yieldex, the venture is touted to be the first residential college in Stellenbosch of this scale.
The One Stellenbosch will boast high-end amenities including a resort-style swimming pool, an outdoor undercover lounge, a restaurant and coffee shop, cinema room, fitness centre as well as themed professional kitchens on every floor.
“This billion-rand private residence is set to be the Rolls-Royce of student accommodation in the country,” The One Property Group tells Moneyweb.
The official sales launch is on Wednesday, 26 October, after which interested buyers can secure their units online – with 23m2 studios on sale from R1.55 million.
“Our vision as The One Property Group was to create something that was completely unique, stood out from the crowd and offered students something that has never been seen before in South Africa,” the group says.
“One of the big factors about this development is that it’s not just a place where you escape from the university curriculum, but it links with that … it is being geared around creating a space where students’ wellbeing is put first and where academic success is at the core of the building.”
Construction on the development – which is located some 750 metres from Stellenbosch University – is scheduled to start early next year. The project is expected to be completed in November 2024, ahead of the commencement of the 2025 academic year.
A thriving sector
Competition in the student housing space has continued to mount in recent years, with tertiary institutions across the country struggling to keep up with demand.
Private players have seen this gap in the market, with both JSE-listed and unlisted property counters investing in student accommodation. The One Stellenbosch is positioned to service the top-end of the shortfall.
According to the group, the development will be a good investment option for parents looking to secure units for their children as well as for commercial investors looking to buy to rent.
The One Stellenbosch will offer a return on investment of between 6% and 10%.
“Student accommodation is a resilient asset class. There’s always a need for it and it’s almost always oversubscribed … The price point of units at The One Stellenbosch is also great, with almost 90% being under R2 million,” says the group.
“Further, a substantial amount of units have a guaranteed rental income for the first two years, which will be calculated at 7% of the purchase price per annum. So, for those more risk-averse buyers, there are guaranteed rentals in place.
“So far there has been a fantastic response to the development since the launch of the marketing, so should the market take to the concept of luxury student accommodation, we plan to roll out similar developments near other leading tertiary institutions around the country.
“That’s definitely the long-term goal of the developers,” it adds.
“Depending on how sales go, we will look at a second phase possibly even in Stellenbosch and obviously around the country as well.”
‘Live, work, eat and play’
The One Stellenbosch has been designed by architectural firm Boogertman & Partners, in consultation with top academic experts.
According to the group, much research over the last five years went into ensuring that the development would compete with some of the best student accommodation concepts in the world.
“A lot of the information and inspiration was taken from the likes of the University of Cambridge and the University of Oxford where students live, work, eat and play at the same place and it’s not completely detached from campus life,” it says.
Each unit will be fitted with a kitchenette, bathroom, study desk, open plan lounge and bedroom – with premium fittings and fixtures. Communal features include an expansive study centre fitted with solo study pods, multi-purpose boardrooms for group work, meeting and conference spaces, as well as print and copy facilities.
The building will also be ‘load shedding proof’ to avoid disruption to student life.
“The One will make use of a combination of renewable solar power and generators to ensure that the development’s lights are kept on and essential functions continue to operate in times of power supply failures,” says the group.
Watch the promotional video here.
Brought to you by the One Property Group.
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