South Africa, in keeping with international trends, is experiencing a shift to property rental in preference to buying. Among the factors causing this are punitive local lending regulations, resulting in only an estimated 30% of loan applicants in the affordable housing bracket obtaining bond approvals.

As a consequence, increased rental demand has put severe pressure on stocks, especially in the affordable housing and apartment accommodation sectors. Demand from primarily low and middle-income earners who do not qualify for bonds is driving prices upwards to such an extent that rentals in some cases equal bond repayments.

Yet perplexingly, South Africa lags the world in treating residential rentals as a business. Current players seem to be addressing only the tip of the demand iceberg, even though debt funding is generally available. South African property development firms typically follow a similar business model – that of build-to-sell – with the consequence that the build-to-rent industry is relatively undersubscribed.

It is against this backdrop that the Devco Platinum business model was designed to create its new real estate rental fund, one based on the international real estate investment trust (REIT) model through direct real estate investment


Where the business model of most of these type of businesses are designed to use investors monies to buy land, appoint professionals and then tender and appoint a contractor, Devco Platinum has a unique and innovative business model

Devco Platinum adopted the C-BMS business model where the Golden Link for Developers is to extract the builder’s profit from a property development project without owning a building company. The contractor or C-BMS, in this case, will provide the building company service as a professional service. Construction is about quality and on-time completion, savings and management to developers alike. Constantly innovating to deliver better building solutions and experiences for Developers and tenants. Addressing and providing relevant solutions for the real needs of developers – sincerely.

The expert “administrator” is now innovating with the end customer’s genuine needs in mind.

The contractor being C-BMS redefines the management of construction risks and the delivery of buildings as marketable, integrated client offerings through the application of innovation and expertise. Leadership and this unique and innovative business model as a concept, will be a powerful driver of our new vision.

Devco delivers high quality, attractive affordable housing in the R400 000 to R750 000 bracket at a competitive price by investing in:

attractive, desirable architecture:

contemporary housing designs that, while aesthetically pleasing and highly aspirational, remain affordable

common areas:

features not commonly associated with affordable housing such as landscaped gardens, paved or tarred roads and security fencing or walling

in-house services:

controlling costs and ensuring quality products at an affordable price by undertaking all construction, civils, sales, complex management and marketing services through Devco Group companies.