Aurelia Residences — Executive Summary

Aurelia Residences Developments (Pty) Ltd ("ARD" or "the Company") is a purpose-built premium real estate development company focused on delivering luxury, high-end apartment residences in South Africa’s most coveted urban nodes. The Company’s flagship project, Aurelia Residences Sandton, represents a ZAR 950…

Section 1 · Business Plan

Executive Summary

Gross Development Value

ZAR 950 million

A premium luxury residential development on an ZAR 800 million total development cost, seeking ZAR 280 million in equity at a 24–30% levered IRR and a 1.8x–2.1x equity multiple.

Aurelia Residences Developments (Pty) Ltd (“ARD” or “the Company”) is a purpose-built premium real estate development company focused on delivering luxury, high-end apartment residences in South Africa’s most coveted urban nodes. The Company’s flagship project, Aurelia Residences Sandton, represents a ZAR 950 million gross development value opportunity situated in the heart of Africa’s wealthiest square mile.

The South African residential real estate market is estimated at approximately USD 30.19 billion in 2026, with projections indicating growth to USD 52.35 billion by 2031 at a compound annual growth rate of 10.9%. Within this broader market, the premium luxury segment has demonstrated remarkable resilience, with higher transaction rates relative to affordable and mid-value segments throughout 2025. International buyers contributed over R1 billion in Cape Town property purchases in the first five months of 2025 alone, underscoring the depth of foreign demand for premium South African real estate.

ARD is strategically positioned to capitalise on this convergence of favourable market dynamics: a declining interest rate cycle (prime rate reduced from 11.75% to 10.25% between September 2024 and January 2026), a persistent national housing shortage of 2.3 million units, growing urbanisation trends, and the enduring appeal of South African luxury property to international investors seeking exceptional value relative to global peers.

1.1 Key Investment Highlights

Gross Development Value (GDV)	ZAR 950,000,000
Total Development Cost	ZAR 800,000,000
Gross Development Profit	ZAR 150,000,000
Net Profit After Tax	ZAR 110,000,000
Project IRR (Levered)	24% – 30%
Equity Multiple	1.8x – 2.1x
Equity Requirement	ZAR 280,000,000
Break-Even Sales Threshold	65% of units (117 units)
Project Duration	48 – 54 months
Unit Count	180 luxury apartments

1.2 Investment Thesis

The investment thesis for Aurelia Residences rests on five fundamental pillars that together create a compelling risk-adjusted return profile:

Prime Location Arbitrage: Sandton commands premium pricing yet remains significantly undervalued relative to comparable luxury nodes in global gateway cities such as Dubai, London, and Sydney.
Structural Demand Tailwinds: South Africa’s 2.3 million unit housing deficit, combined with continued urbanisation and a growing affluent class, creates sustained organic demand for premium housing products.
Favourable Financing Environment: The South African Reserve Bank’s easing cycle has delivered 150 basis points of rate cuts since September 2024, substantially improving buyer affordability and development financing costs.
Foreign Capital Inflows: The weak Rand continues to attract international buyers seeking high-quality lifestyle assets at exceptional value, with the luxury segment demonstrating relative insulation from domestic economic volatility.
Differentiated Product Offering: Aurelia Residences’ hospitality-integrated luxury concept fills a distinct gap between conventional apartment developments and hotel residences in the Sandton market.

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