Spotting the hidden potential in Nelson Mandela Bay
North End, Port Elizabeth
A mere stone’s throw away from the Nelson Mandela Bay Stadium and the Transnet Port, sits Trafalgar Square, the newly renovated two-storey apartment block providing affordable housing to Port Elizabeth’s North End suburb. Striking in bright green and yellow, the property stands as a symbol of rejuvenation for Port Elizabeth’s inner city. Spotting the opportunity to bolster their property business, while simultaneously helping to clean up the city and providing accommodation for city residents, Musa waShe Nyasha and Paballo Shai leapt at the chance to redevelop the building, despite the challenges present.
Although Musa and Paballo had some of their own capital to invest input into the project, they needed further equity funding support. TUHF supported them with the senior debt for the property but more importantly
TUHF’s Intuthuko Equity Fund made the project feasible through complementing their equity to make up the 20% required. This is their second property financed by TUHF, but the first with this scale of redevelopment. For many years, the building sat in a state of complete disrepair and informal dumping site across the road. The site, a mixture of broken furniture, old mattresses and building rubble, compounded the eyesore that was the dilapidated Trafalgar Square building.
Today, however, the building stands proud as a testimony to entrepreneurial accomplishment. All 16 units in the building have been renovated from one-bedroom to two-bedroom apartments. The original wooden floors have been restored to their former glory, and the high ceilings and open-plan living areas provide comfortable accommodation for tenants. Members of the community have relished the new life that
Trafalgar Square has breathed into the area and have noticed a drop in crime since its completion.
Trafalgar Square has a steady stream of enquiries from potential tenants and the owner has had to provide minimal advertising as existing tenants recruit their friends and colleagues to move into this well-run building.
Original configuration: 16 one-bedroom units of 57m² each
Configuration upon completion: 16 two-bedroom units of 57m² each