ABOUT POVICOM
POVICOM is a non-profit company lead by a dynamic, experienced and efficient team established for the purpose of responding to the huge housing shortage for vulnerable members of South African Society. The vulnerable include those who have been affected by Pre-1994 political, economic and social structures as well as those affected by a current housing market that favours the needs of higher-income earners. As a result, a large part of the population is living under overcrowded and inadequate living conditions.
Social Housing Rental has been identified as a feasible solution to supplying decent and affordable accommodation to those who currently fall within the lower-income bracket of between R1 850 and R22 000 and POVICOM has identified the Western Cape and Mitchells Plain specifically, as an area of demand. POVICOM intends to systematically develop and manage Social Housing Rental and in turn, contribute to urban restructuring.
POVICOM is committed in building good quality housing and has a dedicated maintenance team and long – term maintenance plan in place to ensure that the building is well cared for. POVICOM’s selection process is based on long term investment standards and tenants are evaluated by the Vetting Department and operations are overseen by an efficient Management Team and Board. POVICOM believes the key to successful property management is to be committed for the long term in both the property and tenant selection process. A continuous tenant education program and communication plan as well as continuous internal development is ingrained in the ethos of the company.
POVICOM is spearheaded by the Executive Director and CEO, Riyard Abrahams, who is a registered builder with over 30 years’ experience in developing properties. His property development portfolio boasts construction of houses, shopping and residential complexes as well as the completed Regent Villas complex in Weltevreden Valley. Riyard Abrahams evolved his property management expertise, starting off successfully as an award winning Estate Agent in 1994 to currently being the Managing Director and Professional Principal of the Prospur Real Estate branches in Wetton and Mitchells Plain suburbs.
MISSION STATEMENT
POVICOM is determined to contribute to South African Society at large by providing a safe, dignified and affordable living space in areas of great need, through quality development and professional management of Social Housing Rentals.
VISION STATEMENT
Through stead-fast commitment and efficient delivery, POVICOM aims to be a leading provider of affordable and subsidized accommodation for society’s disadvantaged individuals, specifically in the Western Cape.
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COMPANY OBJECTIVES
POVICOM has the following objectives:
- Address the rental housing need of lower income citizens(those with an income from R1 850 to R22 000) and developing the South African rental market to be more integrated and receptive towards these individuals.
- Restructure the South African society and the Western Cape specifically, in order to address inherent structural economic, social and spatial deficiencies.
GUIDING PRINCIPLES
POVICOM holds the following as its Guiding Principles
Selective in tenanting process
POVICOM has a dedicated, Vetting Department, where tenants will be thoroughly assessed according to the criteria set out for social housing.
Provide exemplary service to tenants
The goal of POVICOM is to achieve maximum occupancy levels and for each tenant to be provided a satisfactory stay at our projects. The property will be clean, well maintained and professionally managed.
KEYS TO SUCCESS
POVICOM is fully committed to making its business a long term success with future plans for expansion. It is this dedication and drive which will set them apart from other local peers. The following is what we believe are keys to success:
- Property Management – POVICOM will directly manage the rental properties in order to guarantee all maintenance, repairs and grievances are addressed timeously and so rent collection objectives are met every month.
- Management Team – We have a dedicated, experienced and dynamic team and Board whom will accelerate the growth of the company. What is unique about POVICOM is that its Management and Board are achievers from the very socio-economic environments it aims to develop and are highly passionate about making a positive change to these communities.
MARKET ANALYSIS
Brief historical Background on the Mitchells Plain suburb
Mitchells Plain was created in the 1970’s to alleviate the housing shortages in the Coloured community of Cape Town and relocate this population into a segregated and self-sufficient district. In 1975 it was estimated that there were well over 30,000 inadequately housed families in Cape Town. To wipe out this backlog and cope with the natural increase, 40,000 houses would have been provided by 1981, this would mean having to build an average of 7,000 houses per year for the next 7 years. The need for an area like Mitchells Plain was envisaged way back in the 1960’s with the first proposal tabled by the City Council in 1971.
Mitchells Plain Today
Today Mitchells Plain is one of Cape Town’s and South Africa’s largest townships with a population of about 310,485 people, as of Census 2011. In terms of economic activity, investment is primarily in retail development with Mitchells Plain being considered as having the strongest level of investment on the Cape Flats. It has a central business district (CBD), locally called the ‘Town Centre’ and two large shopping centres; Liberty Promenade Shopping Centre, Westgate Mall and the more recent Watergate Mall. Mitchells Plain is also home to 85 schools in addition to many other amenities. Mitchells Plain, according to Census 2011, had a 35.7% living below the poverty line of less than R3 500 per month. From this, it was estimated the demand for the low cost subsidized housing was at 103,000 individuals estimated to be 35,000 families in need of these housing in the Mitchells Plain area. This is excluding the demand of those that fell in the R3 501-R15 000 income bracket.
MARKET TESTS
An independent research consultant, conducted a survey in order to establish current demand for Social Housing Rentals in Mitchells Plain. An advert was placed for one day in the Plainsman, a community free-sheet, widely distributed in The Mitchells Plain area, with a reach of thousands. The advert called upon respondents, interested in Social Housing Rentals in Mitchells Plain and who receive an income within the range of R1500 and R15000.
The response was overwhelming.
Within the first day, more than 100 respondents had been recorded. In a period of two weeks, more than 1000 people had made contact. The majority of these respondents reported that they fall within the required income bracket and are unsatisfied with their current accommodation for reasons including: residing in overcrowded properties, crime in their immediate area and inadequate housing conditions.
An LSM Survey in some of the main Mitchells Plain suburbs can be seen below.
Income indicators – December 2017 – Mitchells Plain Township
| Suburb | No of Adults | Predominant LSM | Ave. household income |
| Beacon Valley | 18062 | LSM4 – LSM7low | R9000 – R17000 |
| Rocklands | 20739 | LMS4 – LSM7low | R9000 – R17000 |
| Portlands | 17104 | LMS4 – LSM7low | R9000 – R17000 |
| Woodlands | 8829 | LMS4 – LMS7low | R9000 – R17000 |
TARGET MARKET SEGMENT STRATEGY
POVICOM is targeting families with children – single family households who earn a salary starting from R1 500pm to R15 000pm and are permanently employed and match the criterion for the Social Housing Project.
MARKET NEEDS
The current economic climate and historical disadvantages creates the need for quality and affordable houses to rent.
MARKET TRENDS
Renting makes financial sense for POVICOM’S targeted tenant who cannot afford the additional cost/time burden of property maintenance and does not qualify for bonds at commercial institutions.
POSITIONING
POVICOM will position itself as a rental property of choice when it comes to quality, safe, well cared for and affordable rental for the most vulnerable sectors of society.