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Direct Developments

Direct Developments

Direct Developments

DIRECT Developments uses the DIRECT Group systems and methodologies in order to create property developments with parties interested in using our system.

Ours is a unique property development system based on implementing visionary ideologies, philosophies and models.

These elements manifest in the following manner.

The DIRECT Life Model, the DIRECT Community Model and the DIRECT Developmental Model are ideologies.

DIRECT Service Delivery is a delivery platform, DIRECT Group is the holding company for the companies that deliver services, and EEZI Group manufactures products.

DIRECT Development can be seen in the context of five profit centres:

1.  Development

2.  Land

3.  Construction (Building and civils)

4.  Marketing

5.  Management

Typically a land owner will approach DIRECT and offer a piece of land to the founding partner for development.

Should any other partners want to do development, they must bring such development to the founding partner, who would have the first right of refusal.

DIRECT will then agree to develop the property, and takes on the responsibility of ensuring that the land is appropriately zoned and that all town planning requirements are met.

DIRECT does not pay per square metre, but in terms of the available opportunity, which is measured in terms of the land's value and productivity. A piece of land designated for RDP development is worth less per opportunity, for instance, than a piece of land on which R20 million property can be erected.

Similarly, a piece of land, that slopes and can only accommodate three houses is worth substantially less than a similarly sized piece of flat land that can accommodate a thousand units.

The owner has the option to be paid at the level of the opportunity value, or maintain his investment until the unit is sold, assuming a bigger role as a developer.

Every development requires the creation of a newco, and at this stage it may be necessary to form a consortium. Each development will require a unique permutation of partners.

While the developer takes the risk of developing, his risk is minimised. His role is as the visionary, packaging the land to suit local conditions, using DIRECT's exceptional products and services best suited to the purpose.

A professional team will be assembled. 

A contractor physically undertakes building and the civil works, and bears the risk should the per unit cost run over budget.

The developer also appoints a marketing expert, an on-going management company and a training company.

 

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