SIMILAN: 15 Years on a Robust Triple Bottom Line Foundation

South Africa’s housing shortage remains one of the country’s most pressing issues. Affordability is slipping further out of reach for many citizens, with research finding a mismatch between household incomes and the rising cost of property across all corners of the industry. At the same time, the Western Cape is home to some of the most expensive real estate in Africa. Reports consistently highlight Cape Town’s position at the top of the continent’s price tables, with property in the metro now part of a R1.2 trillion market. For many, the Western Cape is the ultimate destination to live, but rising prices have created a demand for new approaches to housing, for inclusivity, and for projects that balance lifestyle, affordability, and sustainability.

One developer working to meet these challenges is Similan. The company is advancing the Newinbosch neighbourhood in Stellenbosch, a multi-phase project that is rewriting expectations of what housing development can achieve alongside partner Raubex Building. In 2023, Enterprise Africa reported on the business’ sustainability ethos, highlighting its leadership in EDGE and Green Star certifications. Two years on, Business Development Manager Pieter du Toit says that ethos has deepened as Similan seeks to create communities rather than just homes.

“We are developers. We started out as a development and project manager for a mutual fund, but we pivoted towards developing our own projects in 2018. We now handle our own development and construction management, and we also handle that for other clients.” He adds that while the company works across all elements of the property cycle, it thrives in coordination rather than execution. “We always say that we are process managers – we need to understand architecture processes, we need to understand urban design processes, we need to understand engineering processes, and we need to understand conveyancing processes all so that we can maintain profitability. We are like conductors of an orchestra. We know when the violin needs to play – never too soon and never too late.”

That clarity has shaped the way Similan has grown. Instead of seeking scale across the country, it has deliberately chosen to focus on regions where municipal cooperation makes projects viable. “We have intentionally limited our reach over the past few years. A developer’s biggest service provider is the municipality. You can have the best architects and consultants, with the greatest portion of land, but if you have a municipality that is not moving in the right direction and doesn’t understand the pressures of the developer then you will not succeed. Therefore, our focus is now the Western Cape. We are working along the Garden Route but we will not go further. We are a small company and we don’t have unrealistic aspirations.”

THE SIMILAN DIFFERENCE

Du Toit’s training as a Chartered Accountant and his time in New York gave him exposure to the ‘triple bottom line’ concept – profit, people, planet – something that has become embedded in Similan’s thinking. “First profit, not because we are greedy but because we know without profit we cannot sustain and find new opportunities. Second is people – we know that our team must enjoy what they do. It is very important for us to understand our strengths, having people spend at least 80% of their time doing things they are passionate about. We link that to making an impact. Lastly, we look at planet. We look deeply at whether we are responsible in what we’re doing. Those three things overshadow growth as a company. We don’t have a desire to grow for the sake of growth.”

The company has proved its intent with milestones that go beyond promo slogans. It delivered the first EDGE-certified homes in Africa and became the first developer in Africa to achieve a Green Star Sustainable Precinct certification. Du Toit is clear that these aren’t badges collected for marketing. “We work very hard to get there and we take it seriously. It’s not just jargon for us – we are driven by vision, guided by detail, and we are grounded in community. We can prove what we do, it’s not just trends. We do these things because we believe in them.”

Today, a large part of Similan’s attention is on Newinbosch, where it believes it is implementing this three-pronged strategy. This project is more than a collection of houses; it is a new neighbourhood for Stellenbosch, one that aims to serve families excluded from quality housing in this very expensive area. “It is a multiyear, multiphase project that absorbs a lot of our capacity, but we are very passionate about it. The first conversation with the landowner was in 2017 and we expect to be busy there until 2028/29. What makes it special is that it is brand new. It is something that hasn’t been done in Stellenbosch recently.”

He continues: “We are creating a new neighbourhood in Stellenbosch that doesn’t have a history linked to it. The neighbourhood and the people who live there are our focus. Stellenbosch battles with house prices and informality, and Newinbosch serves a community that is continuously unserved due to rising market values.”

The development is already certified by the GBCSA (Green Building Council South Africa). Each home is EDGE-accredited, and early phases have seen strong uptake. Challenges remain though. “We have experienced some delays at Newinbosch. Building in winter in the Western Cape is no joke. There are some difficult realities in construction, but there are difficult realities in being a family and paying for a home where you can relax while construction takes place around you. As developer, we are the interface between the two and are always looking for ways to improve the experience for our clients.”

For Du Toit, residential development is about far more than bricks and mortar. “We are residential developers and our single focus is the end user. We don’t fight with our contractors, consultants or the municipality for the sake of fighting, but we will absolutely fight for things that impact the living experience of our clients.”

At Newinbosch, that meant going as far as buying homes for the families of 15 farmworkers who needed to be relocated after the sale of the farm. “We got the same joy from seeing those guys moving into their homes as we did from seeing a new resident move into a new house. Our skill is building homes and beautiful spaces, and we use it to improve lives. We create environments for community to thrive, for friendships to be made, for loneliness to be addressed – these are the things we are capable of and that is why we focus on neighbourhood development.”

Diversity is also a design priority. “We strongly believe in diversity. In South Africa, that is required from a cultural perspective and that can be designed for, but we also believe in diversity in terms of age and typology. Designing environments that involve people and encourage them to remain healthy in older age, while blending that into areas with young people and new life, that is a big enhancement. We look at tenure neutrality and we believe that people become part of the Newinbosch family whatever their property looks like. We design our neighbourhoods to ensure that all residents feel part of the community.”

PARTNERSHIPS AND SUPPLY CHAIN

Delivering such projects requires a steady hand on supply chain and partnerships. For Similan, speed is vital. “Our philosophy across our supply chain is that speed is more important than cost. The scale at which we work means there is always significant debt involved and that comes at a cost in the form of interest. There is no point in asking consultants to work over a set period and then paying more interest which you could have given to them.”

The solution often lies in local expertise. “In Mossel Bay, for example, we use engineers and architects from Mossel Bay, because they have a relationship with the municipality. They know the environment and the bylaws. That saves time and that allows us to complete quicker.”

On the construction side, Similan partners with experienced local teams, but with one condition: “Our projects normally last a minimum of two years but can be up to ten years. It is exhausting to work with difficult people for up to ten years, so we select partners with whom we share values and with whom we get along with well. Our relationships are built on trust and we choose those we trust and those we know we can work with effectively, over those who claim to be the best but are not collaborative.”

15 YEARS STRONG

Similan celebrates its 15th anniversary this year, a milestone that underscores its steady but deliberate progress. Du Toit reflects on the reward of seeing landscapes transformed. “The change in the built environment is very rewarding. One day you drive past and there is nothing, the next day there are bricks, and the next year there are children playing in the streets. That is wonderful to see and that is why I love working in this industry.”

The journey has been far from simple. Projects like Newinbosch take patience, partnerships, and detail-obsessed management. But Similan’s track record shows that by sticking to principles, aligning with reliable partners, and prioritising the end user, it is possible to navigate even the toughest sector headwinds. Du Toit summarises it simply: “Our heart is people – that is what we are about. Our greatest joy is seeing people’s lives improved by what we do.”

In a country struggling to close its housing gap, and in a province where property values are among the highest in the world, that is a philosophy worth paying attention to. Similan may not aim to be the largest developer, but in its 15th year it is proving that scale is not the only measure of success. Quality, community, and a commitment to sustainability might matter more.