Land-grabber pals turn land developers

When land-grabbers and a landowner in East London found common ground, they put the dream of owning a house within reach of at least 200 families who could not afford a bond.

One of those families is that of police constable Sazi Bakumeni, who has been renting a flat in East London's Quigney area for R3,500 a month for the past two years.

He first heard about the land when he was patrolling the area after land invasions flared up following the ANC's adoption of the principle of land expropriation without compensation.

But this was not land for the taking — and losing. It was land that was for sale at a price Bakumeni — earning too much for RDP housing, but not enough to qualify for a bond — could afford.

"I am dreaming of building my own house with my family. What these people have done is something we've been waiting for. Many of my colleagues have bought plots here as well," said Bakumeni.

And it all started with four friends who went from being land-grabbers to land developers.

Earlier this year, urgent court interdicts were issued against thousands of illegal land occupiers in the Eastern Cape city.

Among them were four friends, Buntu Nonkalela, Philasande Dotyeni, Themba Boqwana and Thando Wontoti, who occupied land owned by local businessman Rob Pollock and partners.

The four, respectively a teacher, policeman, plumber and businessman, realised there must be a better way to go about getting land.

"We looked around and said, we are grabbing the land but we are driving big cars. We are renting in affluent suburbs yet we don't qualify for finance to buy homes," said Nonkalela.

"We were just a group lost in the middle."

So they approached Pollock, and proposed he sell his 17ha of land in the fast-developing area of Cove Rock. Pollock came up with a price of R7-million.

With no capital, the men had to be inventive. They spread the word that for R40,000 a plot, people could invest in this venture.

The four friends approached DLC Attorneys, a firm of attorneys and conveyancers, to set up a trust account to handle the money. By May, 200 of the 500m² plots had been sold in the first and second phases, and the money has been paid into a trust.

They named their development Cove Rock New Development. It is a stone's throw from the exclusive Cove Rock Estate, where houses sell for between R1.9-million and R5.9-million.

It's close to East London Airport and a short drive from popular beaches.

Said Pollock: "There's this middle class struggling to get bonds, yet they can't qualify for RDP. On that day, I saw them on this land. I wanted to assist, hence I agreed to their plan. I am hopeful that it will work, it's a brilliant idea."

The title deed for the land will be transferred on final payment to Pollock. The first homes are expected to be completed by the end of the year.

DLC director Ernest de la Querra said when he saw the trust between the buyers and sellers, he knew there was no need to doubt the initiative.

"This is the first of its kind and done correctly it will work in other projects as well," said De la Querra.

And the idea is already spreading. Not far from this land, another 39.7ha parcel, sold at the discounted price of R28.5-million, has been made available for housing development.

Plots there will sell at R90,000 each. "So far 60 plots have been bought. We are looking at selling 400," said Nonkalela.

"People love what we are doing ... We will be happy, though, once the first house has been built."

Landowners will be able to buy building plans from them and will be responsible for building their own homes.

Artist's impressions of the homes show a clean, modular design.

"Our teams are working with the metro to get the connections we want for water, servitude, roads and electricity," said Nonkalela.

Metro spokesman Samkelo Ngwenya said the new developments were good for the city if done for the right reasons.

"Private developers are welcome to come with initiatives to grow the city but every request will have to be approved by the council," he said.