Fynbos Cape Town: What Investors Should Know

EasyProperties aims to democratize access to quality real estate investments by offering fractional ownership in South Africa’s most exciting developments. One of the most popular categories on our platform is off-plan property investment - where investors participate in developments that are still under construction or even in the planning phase.

This investment model has the potential to unlocked excellent value and capital growth for our community members. However, as with all investments, it's important to understand not only the benefits, but also the risks - as recently illustrated in the case of The Fynbos development.

What is Off-Plan Property Investment?

Off-plan property investment refers to the process of purchasing a property before it has been built or while it is still under construction. Investors commit to buying the property based on architectural plans, developer renderings, and proposed specifications, rather than viewing a completed unit.

The Benefits of Buying Off-Plan

1. Early-Bird Pricing and Capital Growth Potential
   Buying off-plan often means securing a lower price point, with potential capital growth by the time the development is completed and ready for market.
   
   
2. Modern Design and Features
   Off-plan units are newly built, incorporating the latest in architectural design, technology, and environmental sustainability - making them attractive to tenants and buyers alike.
   
   
3. Minimal Maintenance and Warranties
   Brand-new buildings come with structural guarantees and warranties that reduce maintenance risks in the early years.
   
   
4. First Choice of Units
   Early investors often get first pick of the most desirable units - those with the best views, layouts, or positions in the building.
   
   
5. Customisation opportunities
   In some cases, buyers may have input into finishes or layouts before construction is finalised.

Understanding the Risks of Off-Plan Investment
While the rewards are real, off-plan investing also carries inherent risks. We have always disclosed these in our investor prospectuses. In fact, each prospectus clearly outlines the development risk, including:

• The development not getting completed
• Developer insolvency
• Withdrawal of development funding
• Failure to meet pre-sale targets
• Construction taking longer than anticipated

These risks are not theoretical. They are real, and they are mitigated through sale agreements that protect investor capital wherever possible.

The Fynbos Development: A Real-World Example
For the first time since launching, one of our off-plan property investments - The Fynbos in Cape Town - will not proceed in its originally proposed form. While this has understandably raised concerns, it also serves as a valuable case study on how EasyProperties acts in the best interest of our investors when challenges arise.

What Happened?
On 13 May 2025, we received communication from the Developer’s conveyancers that due to a combination of market conditions and strategic shifts, the original Fynbos development could no longer be delivered as planned. Instead of abandoning the project, Lurra Capital/ Avantegarde Development - the original developer - engaged Tricolt, a highly respected luxury developer, to take over and redesign the project into a new flagship development at 142 Bree Street.

The key points of the communications include:

• Full refunds available: Investors not wishing to proceed with the new development can opt for a full refund with interest.
• First right of refusal: Previous investors are given first opportunity to purchase units in the new development, before it is released to the general public.
• Developer goodwill: For those who reinvest, the first year’s levies will be covered by the new developer.
• Modern redesign: The new 142 Bree Street scheme is being conceptualized with enhanced design, amenities, and short-term rental compatibility, while preserving the urban green vision.

Making Informed Decisions in Times of Uncertainty
While we appreciate the opportunity to retain priority access in the reimagined 142 Bree Street development, the directors of both Fynbos EP22 and Fynbos Two EP31 have chosen not to proceed with the reinvestment in its current form.

At this stage, there are simply too many unknowns: no concrete details have been provided about the new unit layouts, pricing, or design, and it's highly unlikely that a new scheme of similar calibre can be delivered at the same price point as the original Fynbos vision.

Rather than remain committed to an undefined outcome which may not be favourable to our shareholders, in the directors’ assessment, it is more prudent to request a refund (with interest earned) and reassess the opportunity once the developers release full information, expected in approximately 4 to 6 months.

At that point, should the revised development meet our expectations and investment criteria, we can revisit the opportunity as a new IPO with greater clarity and confidence.

Lessons and Reassurance
The Fynbos outcome, while unprecedented on our platform, does not represent a failure - it represents a demonstration of the reality of risks in off plan property investments and how risk mitigation measures work in real life. We’re not leaving our community behind, but rather supporting you through structured options, transparent updates, and choices that reflect our investor-first philosophy.

As we continue to offer access to South Africa’s most exciting developments, we reaffirm our commitment to:

• Full transparency
• Rigorous due diligence
• Responsible developer partnerships
• Empowering investors with clear, timely communication

Final Thoughts
Off-plan property remains one of the most powerful vehicles for real estate wealth creation. When done correctly - and with safeguards in place - it has the potential to deliver exceptional returns but remains with its risks. The Fynbos experience has reinforced the importance of those safeguards and shown the value of working with a partner like EasyProperties who puts investor interests at the centre of everything we do.

If you have any questions or would like to explore upcoming off-plan investment opportunities, please get in touch with us or browse current listings on the platform.

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