Urbanova — Target Node Deep-Dive
The target node deep-dive - the precinct and node analysis underpinning Urbanova's rollout.
Section 20 · Business Plan
Target Node Deep-Dive
The target node deep-dive – the precinct and node analysis underpinning Urbanova’s rollout.
Bankability at the asset level depends on node economics, not
national averages. The table below summarises the analyst’s node screen
across the Phase 1–3 geography, using prevailing achievable rentals for
secure one-bedroom stock, indicative land or refurbishment cost per
achievable unit, and the resulting yield-on-cost headroom against the
11.4% target (Section 5.1).
| Node | Achievable 1-bed rent | Land/refurb cost per unit | Demand anchor | Node verdict |
|---|---|---|---|---|
| Johannesburg CBD | R3,800–R5,500 | R55k–R85k (refurb stock) | CBD employment; transit hub | Core — deepest discount to replacement cost |
| Braamfontein | R4,500–R6,800 | R70k–R100k | Wits/UJ students; media & tech | Core — student + young professional overlay |
| Rosebank fringe | R6,500–R8,500 | R110k–R150k | Gautrain; corporate node | Selective — top of affordability band |
| Sandton fringe (Marlboro/Wynberg) | R5,500–R7,500 | R90k–R130k | Gautrain Marlboro; Alexandra renewal | Selective — assembly risk |
| Pretoria West / CBD | R3,500–R5,000 | R50k–R80k | Government employment | Core — public-sector tenant depth |
| Salt River / Woodstock | R6,000–R8,500 | R120k–R170k | CBD proximity; rail | Selective — land pricing tight vs ceiling |
| Bellville | R4,500–R6,500 | R75k–R110k | Transport interchange; Tygerberg campus | Core — Cape metro value node |
| Durban CBD | R3,500–R5,200 | R45k–R75k | Port & CBD employment | Core — lowest entry cost; security-led design essential |
| Umhlanga fringe | R6,500–R9,000 | R130k–R180k | Corporate relocation node | Opportunistic only |
| Gqeberha / Bloemfontein / Polokwane | R3,200–R5,000 | R40k–R70k | Provincial services; universities | Phase 3 — shallower demand; smaller schemes |
Two node-screen conclusions matter for underwriting. First, the core
nodes (JHB CBD, Braamfontein, Pretoria West, Bellville, Durban CBD) can
absorb roughly 14,000–16,000 of the 20,000-unit programme at rents
comfortably inside the affordability ceiling — the plan does not require
heroic rents in premium nodes. Second, the selective nodes (Rosebank,
Salt River, Umhlanga) only clear the 11.4% yield-on-cost hurdle with
sales-programme cross-subsidy, reinforcing the two-facility funding
logic of Section 16.
Confidential — this business plan is provided to prospective investors and lenders for evaluation purposes only and may not be reproduced or distributed without the written consent of Urbanova Living Developments (Pty) Ltd.