Urbanova — Target Node Deep-Dive

The target node deep-dive - the precinct and node analysis underpinning Urbanova's rollout.

Urbanova Business PlanSection 20 › Target Node Deep-Dive

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.