Devmark Property Group: Long-term Project Pipeline Buoys Devmark
By maintaining a strong and long-term project pipeline, and by investing into developments where quality is the core focus, Devmark Property Group is building on its reputation as a leading developer in the Western Cape to overcome the challenges posed by the Covid-19 pandemic.
At the end of 2018, Devmark Property Group was celebrating a glittering haul of trophies, being labelled as one of the country’s premier real estate developers, with an award-winning CEO, and with many projects in the pipeline which would bring further glamour to the company’s already prestigious portfolio.
The African Property Awards had bestowed three accolades on the company including Best Residential Development and Best Development Marketing for Plettenberg Manor, and Best Single Unit Residential Development for Klein D’Aria Private Reserve. And Hein Ehlers – the company’s founder and leader – had been labelled by the International Association of Top Professionals (IAOTP) as the Top CEO of the Year for 2018 thanks to his leadership and financial management skills. He was also labelled business Innovator of the Year Award by the IAOTP in 2019.
The company was flying high and breaking ground on exciting new projects. Internationally, Devmark was looking into opportunities in Europe – in the UK and the Netherlands. The company was expanding into affordable housing in South Africa, as well as broadening its scope by investing heavily in a large mixed-use development in Cape Town.
Even through what was a tough economic climate, Devmark continued to grow and thrive. Ehlers told Enterprise Africa: “The recession doesn’t stop people retiring, and the affordable housing shortage doesn’t stop because of the recession. So, we are blessed in the sense that we have very large projects that have all been de-risked.”
But even the most seasoned businessman could not have predicted a total and complete shut down of market activities thanks to a transmissible virus that was previously unknown. While key infrastructure projects have been allowed to continue, the overall hit on consumer confidence has left even the strongest businesses with a new future to consider.
2020: UNFORGETTABLE
In SA, the property industry has shifted. Young professionals are seeing growing wages halted. The growing middle class has lost confidence in the market. Families are choosing to move out of metros for more space to ensure they can now live and work at home. Those choosing to stay in towns and cities are adopting modern ideas of cohabiting and shared accommodation, or even micro living, to ensure value for money while the pressure is on the purse. It’s a situation not unique to South Africa; all over the world the property market is changing as safety, security, working from home, and value for money became top priorities overnight.
For Devmark, change was quick and the company adapted to a new model to ensure safety of staff.
“We follow the protocols as recommended by the government and have implemented a work from home policy and a rotating office schedule,” details Marketing Manager Dejane Steyl.
In 2018, Hein Ehlers told Enterprise Africa that his mantra of being brave while others were scared had gone a long way in helping his business to grow. During the early years, circa 1995, after the company’s formation and around the time of the dawn of the new South Africa, there was much uncertainty in the markets and many competitors were scared. Devmark – then called Devprop Projects – displayed confidence and began buying up land. The journey since has been remarkable, and has made a real impact on the lives of so many. And the company will not let the pandemic undo three decades of exceptional work.
“We are determined to see our pipeline of projects materialise and successfully complete them, we have 30 years of expertise that has carved our name as an industry leader. We are determined to maintain that despite the Covid pandemic and all the distress it has caused the economy,” says Steyl. “Our CEO has a saying that we all try to strive towards: ‘We don’t get tired, and we don’t give up!’”.
The Devmark project pipeline is significant. It was large in 2018 and while some projects have been completed, some are moving into development stage, or second or third phases.
“We are in the fortunate position to have a pipeline of projects and a steady stream of sales which carries us through the pandemic,” says Steyl. “The pandemic might have delayed some of our projects but we have every inclination to see them through and complete them. There will always be new opportunities arising, especially in South Africa.”
PROJECT PIPELINE
Currently, the company is readying itself for breaking ground on the Tyger Valley mixed-used development which will host commercial, residential and retail space, and will be focussed around an athletics stadium and velodrome. The Galleria is a R6.2 billion development, north of Cape Town, which will also be home to a high-quality business hotel and a medical facility alongside a substantial residential portfolio of 500-700 units. “We have made good progress and we are hoping to break ground early 2021,” confirms Steyl.
The development will be Green Building Council South Africa (GBCSA) rated and will include a ‘green lung’ close to the residential portion, allowing for people to enjoy a great breath of nature on their doorstep.
At another flagship development – the Plettenberg Manor retirement estate – close to the Garden Route National Park, Devmark is making fantastic project and is now 80% complete. The company is completing the final 126 units – project value R282 million – and residents will soon be able to enjoy the quality and luxurious lifestyle which boasts picture perfect natural surroundings and a soul soothing atmosphere.
Similar success has been built at Helderberg and Langebaan Manors – both high-quality luxury retirement developments. Helderberg, in Somerset West, and Langebaan on Saldanha Bay, will drive sales success for the company over the coming months. They are the perfect example of de-risked project that Hein Ehlers is keen to implement over a longer period of time.
“At Helderberg Manor we have completed all the houses and apartments and are starting construction of the assisted living very soon. At Langebaan Manor we started with civil works at the end of 2020,” details Steyl.
The other major project keeping the Devmark experts busy is the Klein D’Aria residential estate in Durbanville. Surrounded by vineyard and lush countryside, this development has all the hallmarks of a Devmark success story.
“It has been very successful,” says Steyl. “We were 70% sold out within three months of the launch of the development. It is due to the very sought-after location, being on a working wine farm and a high-end product.”
FUTURE PROOFED
Of course, it has not been all plain sailing for Devmark. The company’s push into Europe has slowed, with plans to invest into retirement assets in the UK and the Netherlands now delayed. And plans to roll out hospital facilities alongside Samaritan Health, using the experience of working on prestigious retirement villages – has been delayed but is expected to get back on track in the first half of this year.
But overall Steyl is positive about the future and remains optimistic about business going forward.
“We are struggling to keep up with the demand for quality affordable housing close to CBDs and amenities. Again, we are in a very fortunate position to have a pipeline of secured projects,” she concludes.
For more than 30 years, Devmark has been displaying exactly what it means to be a property developer that South Africa can be proud of. The relatively short-term delays inflicted by the pandemic will not present a hurdle that Devmark cannot overcome. For now, a slightly different way of working is still bringing the same end result – property developments of the highest quality that allow residents and tenants to enjoy life and business to the max.