 Come to the developer show. This is a program where we showcase upcoming developments, talk investments and discuss how you can find yourself enjoying the beauty in Port Elizabeth called Balemare. Now Balemare is a development that is being showcased by Sea of London developments and today we have one of the developers joining us and that developer's name is Eddie Raff. Eddie, thank you so much for taking some time out today and have this discussion with us. Thanks so much, Chad. Thanks for having me on the show. I'm very, very excited. Just before we started, you were showing me some of the pictures there and it looks stunning. So for the guys tuning in, could you give us a quick rundown of what they can expect if they decide to purchase within Balemare and also with Sea of London and what you and your team are doing? Okay. No, thanks, Chad. So we believe that Balemare is a very unique development, it's a lifestyle development. And what's so special, which by definition actually is the position. And when I talk about by definition, I'm talking about the name Balemare in Italian or Latin actually means beautiful sea and it's really in the heart of the PE beachfront, which we just believe is just a fantastic area. It's just stunning there. Now PE, obviously, it's been a growing market and absolutely beautiful sea sunny days. Every single time I visited Port Elizabeth, I've loved it. So could you introduce us to where it is? I know we would mention it's on the coast there, but where it is and also why there? What was the thought process you guys went through when you decided, hey, let's start a development here? Well, Chad, I'm actually originally from PE. Unfortunately, I don't stay anymore, but I choose every excuse that I can to get back down there. And this is obviously a great excuse. And I just believe that the PE beachfront, the summer strand area is just such an unappreciated area along the coastline. And more so from a property perspective, it just presents excellent value. Summer strand is one of the most upmarket areas in PE. And if you look around the coastline of South Africa, from a property and value perspective, it just, it just presents tremendous value compared to other areas like Cape Town, the garden route and Shlanger. And we believe that the PE market is starting to catch up in the process of increasing steadily. So we believe it's a great investment opportunity as well as a great position to live. It's not very often you hear the words beachside property and value for money in the same sentence. So could you tell us what does this development offer in terms of units available? And then after that we'll talk about that pricing. Okay. This is sort of a conscious decision that we've made in terms of designing the product. We've actually done it elsewhere in PE where we've chosen upmarket areas that have previously been inaccessible to a range of people and created almost a price bracket that makes that upmarket and desirable area accessible to people that wouldn't ordinarily be able to access it through this apartment and lifestyle living. What really also makes this development maybe somewhat unique and a lot of the other developments, when you're purchasing something you really get, you get a base product and you really can't change it much. But with us there's, you're able to, we believe people are individuals and obviously where you live needs to suit your design choices and style. And what we've tried very hard to do is make, really give people a lot of choice. So there's obviously apartments across the board, one, two and three bedrooms of different configurations and styles. But more so in those apartments, really not trying to put people in a box where this is what you buy and this is what you get. So there's quite extensive choices to really tailor make the apartment to your specific taste. Now I love what you said then it's something I ask so frequently on the developer show and that's how much customization is available within these units because you're making a huge purchase regardless of the price of the purchase. It's still a house that you're going to live in and your home for possibly the next 20 years or longer. And you really do want to make sure that that house you're purchasing is a home and something you're super excited to get home to and when you are home that little place of tranquility and that when you look around it brings you that sense of peace. And I think customization is key for that. So it's really nice to hear the lens you've went to to make sure that you can customize. Now one, two and three bedroom apartments are available. How many of each type are available? So this is a large development. It's actually he's biggest residential development. They're 420 units all together. And so far so far we've built we in the process of building 92. Some of them are going to be be ready imminently. So they're quite a quite a few more more to go that we we're releasing in phases. So we with your help private properties help we've we basically closed off the first we've closed off the first phase entirely. We've almost completely closed off the second phase and base three is imminently going to be launched. You know, it's another question I want to ask but before I get there, let me talk about pricing with you. Could you just give us a quick run on pricing? Okay, so we started with pricing of just below 800,000 for the one beds. Three beds used to go up to about 1.4 million and obviously as we've been going through phases, the pricing has been increasing steadily, also because of a kind of building inflation and normal inflation coming through. So the pricing has been been very, very aggressive in our view. And what we find a couple that worth is really trying to give people real value for money. I know that sounds a bit cliched. But if you're selling 40 units, then you can, if you're an unscrupulous developer, you can get away with what's skimping on finishes and quality, etc. But we've got 420 units all together. And we really want to offer people we want to carry on selling, ultimately people are very quick to see if they're getting value or not. And really, we try to keep the margins as low as possible, not just for ourselves, but across the board from the contractor through to the sanitary web provider, through to the appliances, which come from Italy, by the way, which also speak to smeg appliances from Italy, which also speaks to the quality of the development to because it's it is such a large development, especially for Port Elizabeth, maybe, maybe not much overextended, so. Well, 800,000 to live on the beach, really, I mean, you can't bet your eye on it. That is incredible value for money. So, Eddie, could you touch on what different customizations are available within the units? So, we've tried to make sure that people have really a great and a wide range of choices. So there's basically different color palettes that we put together. We did that in conjunction with interior designers from from valence furniture, who we're partnering with, and more so, if someone doesn't find the right, the right color palette or color choice, which starts from the tiles through to the the joinery, i.e. the kitchen cupboards, surfaces, countertops, and all the joinery that goes into the bedrooms, the cupboards for the bedrooms, they are able to really choose whatever they they would like. At the end of the day, we want we want people to to be happy with the product they receive. So essentially ocean views, smeg appliances, fully customized interior, and that starts from 800,000. I think we're talking about some people's dream home. They're logging on to this. I think a lot of people are going to possibly look at relocating down to PE, a little bit more sun, a lot more water. Oh, being stuck up here in Joburg during the summer months, I think that would be ideal for me. Do you know what, Chad? It sounds like a good deal. It is a good deal, but quite frankly, that's what things should cost. Absolutely, absolutely. I think the prices of houses, it's difficult. Obviously, everybody wants to purchase a house that they can afford. And often, as you're browsing, you're scrolling up those price brackets and you're seeing everything else that's outside of your budget and you're wishing and you're working and you're trying to get there. And along comes a development like Balemare, which is there. You know, it really is priced within the right price bracket and you're offering everything that an upmarket development would offer. Can I ask what other amenities are available? So we've got the beautiful units. Obviously we've got the beautiful view. But what else is within the development that potential clients are going to be happy to explore? Okay. I mean, the basis of the development, Chad, is it might sound a bit contrary in terms of, but we almost feel like we're not selling property here. It feels like we actually selling a lifestyle to someone. So on the heart of the, or in the heart of the beachfront, where you've got the sea right there, the boardwalk, the sun international complex is right next door. So you've almost got that lifestyle and amenities right on your doorstep outside the perimeter of the complex. But it's equally important for us to create that same lifestyle within the complex. So we've got big parks, spaces, very family orientated. There's a clubhouse that comes to the restaurant. It's got a health spot in it. There's a swimming pool, an infinity pool, meeting rooms as well. We also believe that the way that people, especially now with COVID, but the way that people function over, or have been functioning over the last one, particularly over the last six months or so, has fundamentally changed. They are really looking for more of a lifestyle in the way that they live, in the way that they work, and in their health choices. So we've really tried to try to encapsulate all of that in the development with all of the amenities. And obviously more important than anything else. We've got to be realistic that crime is reality. And security is really over-spect at the development. Really making sure that this is a super secure lifestyle. I travel quite a bit. And the basis that I've been looking at it from is that if my family were to live there, I'd need to be happy that they are totally, totally secure when I'm out of time. So being able to... You've painted us a tantalizing picture of this development. So let's take a quick break. Let's take a look at this development and we'll be right back. Good afternoon and welcome back to the Developer Show. I'm your host and my name is Chad. And today we are joined by Eddie Raff from Sierra Landa Developments. And Eddie's talking about their latest development on the P.E. Beachfront, a beachfront called Bale Mare. So Eddie, before we left, you were talking about security. And I love speaking about security when we talk about developments. What kind of security can we expect? You said that it's over-spect. You've really went through all the different avenues when looking at security. What can we expect? Okay. Well, first of all, by peace standards, this is really off the charts from a security perspective. But you've got to bear in mind that although I'm originally a Port Elizabethan, I live up here in Joburg now. So really what we did when we suspect the security is we went to some of the upmarket developments here in Johannesburg with really top, top-class security. And we based it from there. So we're talking about cameras with video analytics, which basically means that you don't want to be looking at a recording after someone has jumped over a fence, God forbid, you want to stop them before they jump over the fence. So super technologically advanced. Obviously it comes with all the standards such as high walls, electric fencing, 24 hour guarding, et cetera, access control and the way that's managed is super important. And maybe I'm saying something that I shouldn't say, but I'll say it anyway because I still think it's important is that we've probably compromised the aesthetics for security. We'd rather have the electric fencing and high walls and really make sure that this is a secure complex. Because if you haven't got that security in peace of mind, then what's the point? Absolutely. I think where we are now and all the different things going on in the news, there's a peace of mind and a comfort that comes with knowing that you're safe and secure in your house and that you can possibly fall asleep with your sliding doors open or your door unlocked if you forget and not have to worry about it. And absolutely nothing. I don't think aesthetics can replace that peace of mind or anything that somebody can do within the development. If you know you're safe, nothing else brings that comfort. So it's so reassuring to know the length you guys have went with that as well. Thanks Chad. Eddie, I wanted to ask another question that is we touched on it briefly earlier on in the interview and that is the development phase now I believe is phase three. So if I wanted to move in, if I call you up and I say, Eddie, I want to move in today. You've absolutely sold me. There's nothing that's going to keep me away from that blue water in Port Elizabeth. What would be the process and also when could I move in? When can I expect to move in? Okay. Well, basically we thank God we've had amazing feedback from the development in the market. But when you've got great partners working with you on the development such as F&B, this is an F&B financed and also F&B home loan backed development or feature development at least and makes your life a lot easier. So really what we've been doing is rolling out these blocks at a rapid rate. We've gone with Pee's probably one of their best contractors, biggest and best contractors. Part of the reason why we went with them is they specialise in building upmarket residential and upmarket houses and at the end of the day we also wanted to really make sure that the quality is really there. But when you're dealing with the construction company as big as that, it's almost like watching Formula One. I'm not sure if you're a big Formula One watcher but you go into or supporter, the race car drives into the pits and you've got this team in a matter of seconds. Obviously you can't put up a building in the matter of seconds. That's really it almost attacks the construction site and puts up the building really quickly. So it's as simple as signing an OTP with your finishing choices and in a matter of months you're basically ready to move in and everything is done amazingly by Alfa Amiga, the contractor, really unbelievable, another unbelievable partner tab on board and you're getting a beautiful product that's just brand new, ultra modern and really fantastic and something that we super proud of. So what would the process be if I call you up and say, Eddie, I want to move in. What can I expect? Are you able to take me to a show house? Can I take a look at that? Are you possibly able to help me with my bond? What would be the process you take me through? Will you take a first-time buy-through if they decide to purchase within Balamare? Okay, so we've got a show house that we just getting up and running at the moment so you can really touch and feel and understand the quality of the product that you are selling. We also want to hold the purchases hand throughout the whole sales process so we haven't been dealing with mortgage originators, we've gone ourselves to see London directly to all of the banks and we'll take you to all of the banks ourselves and actually hold your hand through that process or if there's a, you've got a particular relationship already, we'll put you on to the right person within the bank and really hold your hand from start to finish. I love to hear that within developers as well. I think a lot of first-time buyers, especially, are so nervous going around this purchase that it's really good to know that the developer you're entering into this agreement with is going to take you through it and will explain all the ins and outs that you need to know that you have and because it's such a daunting toss doing this, there's so much out there, there's so much going on, it's really nice to see what you guys are doing with that as well. Eddie, the other thing I wanted to ask is, what are the pros? Oh, sorry, Eddie, what were you saying? No, thanks. I mean, it's such a massive decision that people are making. I mean, it's an expensive purchase and such an important purchase. How many people have actually bought property within their lives and we want people to have a pleasant experience and to be happy with the product? Absolutely. And in terms of, if we move into the advice section with Eddie, I should actually name the segment of this of the show advice section, but what are the pros of purchasing within the development? Why would you say to somebody, look, rather look at this development in terms of understanding how some way. Okay, well, first of all, I like things that are brand new, things that are modern and that's really what you're getting. And particularly if you get in early within a development, let me put it to you this way. Our buyers in phase one and phase two, I believe have been really rewarded financially as well. They've chosen to get in early and they've certainly been rewarded financially for that. The development is now, how should I put it, really, really settled nicely. There are lots of sales and it's really, the product has proved itself. So really what you're getting is potentially a bit of a discount as to when you get in early, so it's number one, it's a good investment opportunity, but number two, you also not necessarily coming with the latent defects of a second-hand house or a second-hand flat where I can still remember when I bought my first house many years ago, I looked around the property, it looked fantastic and all of a sudden after I moved in, all of the cracks started to show excuse the pun. While if you buy into a development, they're obviously guarantees and warranties that come with the product, the specifications are all very well detailed within the sale agreement and the municipality actually of Port Elizabeth together with the NHBRC these days really forces the developer, there's no room to take shortcuts, everything needs to be done properly and if things went down properly, really there's recourse to the purchaser. It's really nice, everybody loves hearing that something comes with the guarantee. Now if we had to look at Balemare from an investment point of view, for first-time investors, for people who are already quite well established within the investment section, what makes this development a good investment? Okay, so the position is unbeatable within Port Elizabeth, like we were saying it's in the heart of the beachfront. Number two, it's a great, great product. We believe we're offering really, really a lot of value and people can really see if they're getting value or not. And that becomes obvious when you walk into the units. But another interesting thing, if I can talk about PE in general, is that, and maybe a particularly an upmarket area like this in Port Elizabeth, PE is a very strange market in terms of the fact that it almost hasn't caught up as much with the rest of the country from a pricing perspective. That's what you buy it for. And you can really achieve that value. You don't pay as much as you pay for a flat in a Schlunger or Belito, or maybe somewhere else in the garden route. And on the other side of the coin, I'm not sure why it is, but the rental market in PE is unbelievably strong. So you put the two together, lower pricing, great rental demand, and that ultimately gives you a great yield. So from an investment point of view, you're really achieving very, very high net yields off to your costs that are almost close to 10%, which is sort of unheard of. And also, what kind of beachfront property isn't a good investment? Absolutely. And we've seen it already. The prices have already started going up. And like I said, initial buyers have certainly been rewarded and current buyers continue to be rewarded. So then coming on to our closing question, that is you've got a relation with private property and it's been a relationship that I feel is quite strong. Do you talk to me about how it's influenced the way you market your developments or just basically your real estate game completely? How has private property assisted you with that? Okay. So, Chad, the only way that I'd actually answer that is to say that there really wasn't much of a choice. That private property is absolutely just the go-to platform. And we simply haven't bothered with some of the other traditional platforms. Also, being a, how should I put it, cutting edge development really at the forefront in terms of technology, whether it's security or connectivity with father, et cetera, or anything else that goes into the unit. Going online, really with the progressive site and company like private property, it just wasn't even a consideration for us. It was an absolute necessity. We'll see you have it, ladies and gentlemen. Balemare, Eddie Raff from Sea Islander Developments. Eddie, thank you so much for taking some time out to join us. Thanks, Chad. Really appreciate your time and great chatting to you. It's been a pleasure for everybody tuning in. Thank you so much for joining us as well. We're very interested in Balemare, which I'm sure you are. Give Eddie a call, give his team a call. They will be more than happy to assist you. And we will see you again very soon. Thank you.