Subdivision development management proposal
Four plots.
A clearer route to value.
Erf 279 Saxonwold
Conceptual diagram. Final plot dimensions and access remain subject to professional review and approval.
The opportunity
Advance the four-plot subdivision route.
The Phase 1 assessment tested three routes for Erf 279: a 24-unit development, a lower-density cluster scheme and subdivision into two or four residential plots.
Our recommendation is to advance the four-plot subdivision route. It offers the clearest balance between value, planning risk and the character of Saxonwold. The current working case assumes four plot sales at R2 million each, producing R8 million in gross receipts.
This proposal appoints Akoma to take that recommendation into delivery. We will act as the owner’s representative, coordinate the planning and land-survey team, manage the City of Johannesburg application, and prepare the plots for sale alongside the appointed property agents.
Confirm whether four compliant, marketable plots can be approved, then manage the process through to sale without committing the owner to avoidable cost.
Why subdivision
A lower-exposure path that stays close to the neighbourhood’s character.
Planning fit
Subdivision keeps the proposed use close to Saxonwold’s established low-density residential character. This should reduce, but cannot remove, the risk of objections compared with a townhouse or apartment scheme.
Construction exposure
The owner can unlock value through serviced or approved plots rather than funding a full residential build.
Test before committing
Planning compliance, plot dimensions, access, title conditions, services capacity, bulk contributions and market evidence will be tested before the project advances.
Our proposed approach
One accountable route from feasibility to transfer.
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01
Confirm the development basis
Review the title deed, zoning, existing survey information, access, services and the physical fit of two- and four-plot options. Obtain current written advice from the town planner and land surveyor. Test plot values with local agents before relying on the R2 million assumption.
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02
Prepare and submit the application
Agree the preferred subdivision layout. Coordinate the town planner, surveyor and any specialist inputs. Prepare the City of Johannesburg application, notices and supporting documents, then manage submission and municipal queries.
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03
Manage approval and conditions
Track the application, public participation and objections. Coordinate responses and keep the owner informed on programme, cost and decisions. Manage clearance, contributions and approval conditions that fall within the agreed scope.
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04
Prepare the plots for sale
Work with the appointed agents on pricing, positioning and the release plan. Coordinate buyer information, planning disclosures and the handover to conveyancers through transfer.
Working programme
Planning approval is expected to take approximately 6 to 24 months or longer. The final programme will be set once the planner confirms the statutory route and the City has accepted the application.
Commercial case
A working balance of R631,519 before VAT.
The model gives R831,519 before Akoma’s fee and R631,519 after the R200,000 fee that applies at the current R8 million sales assumption. The 10% uplift incentive is zero at this level. The combined fee remains below its cap of 25% of the realised project surplus before Akoma’s fee. The client-confirmed R6 million land cost includes transfer costs and demolition of the existing structures. This remains a decision tool, not a guaranteed return. The illustration excludes VAT on Akoma’s fee and any unconfirmed VAT treatment of the agents’ commission.
Working budget
- Land, transfer and demolition costs
- R6,000,000
- Sales costs
- R400,000
- Planning costs
- R204,994
- Development contributions
- R400,000
- Other professional fees and surveys
- R63,250
- Contingency (15%)
- R100,237
- Total costs
- R7,168,481
Sales assumptions
- Plots
- 4
- Plots sold
- 4
- Value per plot
- R2,000,000
- Agents’ fees
- 5%
- Akoma base fee
- 2.5%
- Uplift incentive above R8m
- 10%
- Combined Akoma fee cap
- 25% of pre-fee surplus
View planning fee detail
Rezoning
- Application fee
- R8,252
- RoR application fee
- R1,240
- Advertisement costs
- R7,000
- Town-planning fee
- R75,000
- Drafting fee
- R5,000
- Disbursements
- R7,500
Subdivision
- Application fee
- R928
- Town-planning fee
- R40,000
- Drafting fee
- R500
- Disbursements
- R4,500
Clearance
- Application fee
- R836
- Town-planning fee
- R25,000
- Disbursements
- R2,500
- VAT on the above
- R26,738
- Total planning fees
- R204,994
Other professional fees and surveys
- Architect
- R5,000
- Miscellaneous surveys or studies
- R50,000
- VAT on the above
- R8,250
- Total
- R63,250
Scope, terms and approval
Clear responsibility. Controlled commitments.
Akoma’s role
We will act as development manager and owner’s representative across the planning and sales workstreams. Our scope includes team procurement and coordination, application management, programme and cost reporting, objection-response coordination, sales preparation and owner decision support.
Commercial terms
Akoma’s proposed fee is 2.5% of gross plot sales proceeds, plus 10% of gross receipts achieved above R8 million. The combined fee cannot exceed 25% of the realised project surplus, calculated as gross receipts less approved fixed project costs before Akoma’s fee. R50,000 is payable on appointment and R50,000 on submission of the application. Both amounts count toward the final fee, with the balance payable from transfer proceeds. At the current R8 million working case, the total fee is R200,000. The illustration excludes value-added tax, which applies where required.
Third-party costs
Town-planning, surveying, municipal, advertising, specialist, conveyancing and agent costs are for the owner’s account. No third-party appointment or material cost will be committed without the owner’s approval. Current figures are estimates and will be replaced by written quotations.
Key exclusions
Approval, timing and sales values cannot be guaranteed. Legal advice, tax advice, detailed engineering, physical infrastructure works and litigation are excluded unless separately appointed.
Approval to proceed
Start with a costed inception plan.
To appoint Akoma, please confirm acceptance by email. We will then obtain current planner and surveyor proposals, confirm the four-plot test, and return with a costed inception plan before the statutory application begins.