In spite of major setbacks since it began in late 2012, the development of the Windsor Estates gated community at Providence, East Bank Demerara, is a success story says owner/developer Danny Sawh, as 80 per cent of the property owners defied the criticism that the homes would be too expensive for Guyanese to afford.
Using the Windsor Estates Providence development statistics as supporting evidence, Sawh recently gave an insight into the company’s planned US$350 million Ogle, East Coast Demerara luxury housing development project. He said that it will also be affordable for Guyanese as well as foreigners residing here, as he underscored that like the current properties, security and maintenance will be a major selling point.
“When we first developed this concept, this current one here, the financial model was primarily to target remigrants. We had started with 25 acres so it wasn’t going to be a whole lot. We felt there’s going to be enough [Guyanese living overseas], coming back for different reasons and that was our main target. We had said about 80% to remigrants and 20% locals. We were very surprised that flipped the other way around. It was 80% locals and only 20% remigrant, so it was the other way around,” Sawh told Stabroek News in an interview.
“So we still, we still feel that there is a market here in demand for a quality community and people are still interested in it, and wanting to live at a different standard, a North American gated community. And since there’s no real economic data like you have in the US as to who has the money and who doesn’t, [we believe] there’s a portion of the population who can afford our properties,” he added.
Guyana’s economic projects coupled with the high demand for property since oil discovery in 2015, makes Sawh bullish on the market prospects.
Dog whistle
Looking back at Windsor at Providence, in 2012, when there was no sign of oil and Sawh dared to share his vision to transform a flooded area at Providence into an upscale gated community, many persons laughed at him and no investor would partner with him.
“There were no investors. It was just me… it was just personal money that I put into it to get it started and then eventually we got some local financing by a couple of banks. It was a huge risk, but again, it was based on a lot of research by myself in terms of numbers and based, on country reports and projects and what the different scenarios could be,” he said.
“The original concept behind this [Providence] development, it was to try to bring something to Guyana that’s unique and do something quite different and, and try to stay with it to the end. So when we came up with the design plan and came up with all the research that we did, we kind of published them either through marketing material or on our website. And we used to tell people that this is what we’re going to deliver. People were like, ‘Oh? You guys are not going to do this. This is just again, a dog whistle… where you’re saying, you know, you will make it look fancy and it’s not possible,” Sawh recalled.
But while data even then showed that this country would have a housing boom, he understood that from an investment perspective, he too would have trepidations. The skepticism of locals was something he said that he also accepted, because the experience of being disappointed by persons time and time again was a reality that Guyanese were traumatized by. “I knew because it’s Guyana, it was what it is. It’s to be understood because of so many projects that were started here and got, you know, developers trying to make a raise but then bail on projects. And as you noticed, there are a lot of abandoned projects around. So we knew we were going to be faced with that challenge of being second guessed,” he acknowledged.
He prides himself in being able to deliver to the country, a community that mirrored the concept model he originally proposed and had only made adjustments to upgrade aspects. “If you go back, everything that we had proposed back in 2012, it turned out pretty much exactly the same as the proposed concept. There are a couple of things we added afterwards to enhance the project. But the goal is, if we are designing and presenting a concept, our goal is to deliver on that…”
Below cost
Divided into two sections – Esplanade and North Haven – Windsor Estates consists of 131 single-family houses, 41 town houses and 45 condominiums that have all been sold and are occupied. When they were sold, prices ranged from US$135,000 ($28.3 million) to US$300,000 ($60 million) depending on model, options, land size, and location. Some had been sold below cost during the company’s “struggling times”.
The last phase of the project has two condominium buildings nearly completed and most of those units have already been sold, leaving “Only a few available for sale.” Those start from US$300,000 or ($60 million).
And given the market demand, persons have paid down on securing the properties, an option made available by the company.
Security, management and maintenance of the gated community, were the key selling points, according to Sawh, as prospective homeowners here seek out those features when showing interest. He said that the peace of mind of his own owners was paramount because everyone has enough already to focus on to have management and security added to that.
As it pertains to maintenance and management, Navigant Builders, the development company owned by Sawh, attached to the contract a Home Owners Association (HOA) fee of US$50 that was subject to adjustments. It has not changed much since then as today. A SFH (single family house) owner pays US$73.50 and condo owners US$42.
“We understand the need for residents to feel safe in their community and did not spare [resources] in this regard,” Sawh said.
The community has a twenty-four-hour manned security guard service at both gated entrances. As a backup, there is a sophisticated infrared motion sensor security system mounted on top of its perimeter fence. Both Esplanade and North Haven are also monitored by CCTV cameras.
There are other security features that this newspaper was also subject to but which cannot be disclosed for privacy reasons.
In addition to security, the fees cover maintenance of the community’s concrete drains, roads, recreation park, and parapets. Except for condo owners, each homeowner is responsible for maintaining their own yard space.
While homes listed as for sale in Windsor Estates now have staggering price tags, Sawh said that those gains were not his company’s but the homeowners who had invested when he first built, for which he is glad. Recently, one home owner sold their property in in the community for an eye popping US$1.2 million. Home-owners also currently rent or lease at steep prices.
Overall, Sawh said that his record must be judged from Windsor Estates Providence because when an evaluation of his delivery on the project is looked at, one would see that all that was proposed has been completed today.
Despite local rumblings surrounding the affordability of these houses, he said the 80 % ownership/occupancy by locals is an assurance by him to the country of Navigant’s commitment to affordable housing and that his future venture will be not be exclusive to only foreigners.
“I am proud we got through and here we are today. Thanks to our staff and their determination. We were able to get this done. I could not have done it without them. Most of the people we have here are people who have been here from day one… and I am grateful”, Sawh said.
