durban investment & business road show

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DURBAN CHAMBER OF COMMERCE AND INDUSTRYPROJECT REPORT

Cornubia is a 1300 hec-tare expanse of green-field opportunity stra-tegically located within the municipality’s

Northern Urban Development Corridor (NUDC), which is central to the province’s primary growth and development corridor.

This area is identified in the City of Durban’s Integrated Development Plan (IDP) as part of a major economic investment node. The project is snugly nested between Phoenix/Ottawa and Umhlanga, bordered by N2 freeway on the east and the M41arterial on the south, and the Ohlanga River to the north, just a mere 7 km south of the King Shaka International Airport. The development of Cornubia presents a significant opportunity to attract new investment to this

area by releasing land to meet the significant demand for well-located industrial and commercial land as a result of the increased economic growth rate of the metropolitan economy. The proposed development is ideally suited for infrastructure, commercial (offices, retail, etc.), light industry (logistics, manu-facturing), and residential units across the full spectrum of housing needs. The project has the scope and ability to be either a wholly private sector project or a Public Private Partnership (PPP). Currently, due to joint planning and collaboration, it could be viewed as a PPP between part-ners Tongaat Hulett and eThekwini Municipality. Cornubia is a multi-phase project.

Construction has already commenced, while in many phases all necessary approv-als have been obtained. On the remaining phases, a process of obtaining environmental approv-als is well underway. Opportunity exists for investors to partner with either the developers and/or the end users.

The project’s success will depend on some key road infrastructure, the provision of which is currently being rolled out, making the de-velopment area highly accessible.

CONTACT PERSON: MTURA MATSHINI - 031 5601900, [email protected]

CORNUBIA

www.cornubia.co.za

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It’s an opportunity for and my family to achieve what we’ve always dreamt of.-Themba Mkhize, father and husband“

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DUBE TRADEPORT: DUBE CITY

Dube City is currently in its first phase of development. It comprises a 12-hectare site located at King Shaka International Airport (KSIA), increasing to 24 hectares on completion. Land use has been planned to include a mix of hotel, conference, entertainment, retail and knowledge-inten-sive companies and company head offices. DTPC’s own headquarters, 29° South, is situated in the heart of Dube City. Companies may either develop for themselves or link-in with a developer

looking to put a project together. The development hub is just 900 metres from KSIA near the N2, M4 and R102, approximately 34 km from the centre of Durban and 16 km from Umhlanga Ridge and Gateway. This northern corridor is recognised as a pre-eminent contributor to the future growth of the provincial and city economies. This is a public sector investment for which all zoning and other approvals have been secured. Developer-or tenant-led development are now sought in the spheres, particularly, of large-scale office, commercial and hospitality buildings.DTPC currently has developers looking at various sites; the first development planned after 29° South is an office development as well as a hotel development which is under final negotiations. It is anticipated that this will include a 200-bed hotel and large conference centre with retail space on the ground floor and approximately 13 000m² of offices.

CONTACT PERSONS: 032 814 0000 TIM HUDSON ([email protected]) HAMISH ERSKINE ([email protected])

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www.dubetradeport.co.za

The Dube TradeZone is industrial land surrounding the Dube Cargo Terminal. Within Dube TradeZone, pref-erence is given to businesses which are aligned to air services, i.e. companies that import or manufacture for export, logistic and support companies.

Companies targeted are ones that would benefit from close proximity to KSIA and Dube Cargo Terminal, the freight forwarders on site and DTPC’s trucking division Dube AirRoad. The project seeks industrial development and tenants for industrial properties, including manufacturing, logistics and distribution in particular.

In Dube TradeZone, a high degree of interest has been shown which has resulted in the conclusion of lease agreements over almost all the available sites. A number of buildings are now under construction or com-plete. DTPC is now focusing on bringing online future phases, TradeZone Phase 2 and uShukela.

CONTACT PERSONS: 032 814 0000 TIM HUDSON ([email protected]) HAMISH ERSKINE ([email protected])

DUBE TRADEPORT: DUBE TRADEZONE

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The uShukela development is situated immediately adjacent to the massive Dube TradePort infrastructural project, a multi-faceted ‘greenfield’ business precinct surrounding Durban’s King Shaka International Airport (KSIA) which forms the heart of an emerging aerotropolis, 30km north of Durban.

The rapidly developing Dube TradePort, with the international airport at its centre, provides KwaZulu-Natal with a new, world-class trade and logistics platform, creating a globally competitive business location which offers the business community speed, agility and connectivity. The neighbouring uShukela development adjoins the present Dube TradeZone - an area designed to attract a range of airport-related enterprises, warehousing, logistics and distribution, light manufacturing and the like. uShukela is 80 hectares in extent, of which 50 hectares is developable as a business, industrial and logistics platform. Whilst capitalising on significantly improved air connectivity, uShukela is strategically positioned between Africa’s two major seaports, Durban and Richards Bay, serviced by world-class road and rail access.

UShukela is ideally located immediately to the north of Dube Trade Port and King Shaka International Airport. The site is bound to the east by the N2 highway linking Durban and Richards Bay, to the south by Dube TradePort’s TradeZone and to the north by the M43, uShukela Highway.

Tongaat Hulett is flexible in terms of the ultimate land use; however, the proposed development is well suited for commercial, offices, hotels and conferencing, industrial, logistics and warehousing. Due to the fact that a portion of the land belongs to Tongaat Hulett and the adjacent portion belongs to Dube Trade Port, the opportunity exists to either collaboratively plan and develop the properties to opti-mise use and outcomes or to develop the property as a stand-alone development. Specialist’s studies have already been completed and it is envisaged that development rights will be received by the end of 2014. CONTACT PERSON: GREG VEERASAMY - 031 560 1900, [email protected]

USHUKELA

www.thdev.co.za

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Bridge City was established in 2006 as a joint venture development between the eThekwini Munici-pality and Tongaat Hulett and comprises a 47 hectare town centre and 13 hectare business node. It is a mixed-use development and will include government/retail/commercial/offices and residen-tial uses. To date, a 48 000m2 shopping centre and a Regional Magistrates Court have been built and opened and a State Regional Hospital is due to start construction in June 2014.

The rail link into the station under the shopping centre was opened in March 2014 and the eThekwini Bus Rapid Transport (BRT) system will be up and running by June 2016. Bridge City is the key destination for three separate routes within eThekwini being the links with Pinetown, Cornubia/Umhlanga and the Durban CBD. This has added significant impetus to Bridge City and significant interest in purchasing in Bridge City. Part of the BRT contract, as awarded in May 2014, includes the construction of the half diamond interchange under the M25 freeway and most importantly, this will provide access from Bridge City onto the M25 freeway back towards the N2 freeway system within the next two years.

All bulk services are installed to Bridge City and all sites in the town centre are saleable and transferrable. 33% of the available bulk has been sold and the remainder is available for sale. Developments in the town centre may start construction within three to four months while developments in the Business Estate may start construction within three to six months. Any site may be purchased and developed and services will be made available to such sites before beneficial occupation, if not already available. All triggers for the release of the total bulk of 725 000m2 allocated to Bridge City will be in place by mid-2016 i.e. the rail line connection (opened) and the half diamond inter-change with the M25 (mid-2016). Bridge City is located in the Inanda, Ntuzuma and KwaMashu (INK) and Phoenix region of eThekwini Municipality (approximately 1 million people) to the north west of the Durban CBD. The development is a joint venture development between eThekwini Municipality and Tongaat Hulett and is a successful example of a PPP.

CONTACT PERSON: BRIAN IVE - 031 560 1977, [email protected]

BRIDGE CITY

www.bridgecity.co.za

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Tongaat Hulett’s Sibaya development provides for the integration of urban development and the natural environment, creating a new urban identity with significant tourism potential and way of life for residents in and visitors to an idyllic setting some 8km north of Umhlanga and 25km from the Durban city centre.

Sibaya, with its undulating topography, gives rise to a new coastal node which includes residential, commer-cial and office development, together with recreational and entertainment opportunities, whilst simultane-ously strengthening the attractiveness of the northern coastal corridor. The development sets out to provide for a vibrant and inter-connected mixed-use - though predominantly residential and lifestyle uses, maximis-ing the area’s unique natural conditions, while acknowledging and remaining responsive and receptive to environmental sensitivities. Sibaya comprises five development nodes and is 750 hectares in extent, inclu-sive of the Hawaan Forest, rich in flora and fauna and the only remaining significant pristine coastal dune forest, outside the Isimangaliso Wetland Park, in KwaZulu-Natal. Sibaya is located immediately north of the existing Umhlanga node and south-east of the King Shaka International Airport. It is bordered by the N2 to the west, Umdloti and the Indian Ocean on the east and it dissected by the existing M4 highway.Sibaya is a predominantly a residential development, with a strong emphasis on leisure-types of develop-ment complemented by some commercial, resort and office rights.

The development is also boarded by a pristine indigenous coastal dune forest and the Umhlanga Estuary that enhances the lifestyle factor. Development nodes 1 and 5 have approved development rights and are “shovel ready”. Development node 4 is currently undergoing an environmental impact analysis. The full planning process is expected to have been completed and the node will be “shovel ready” by the end of 2014.The remaining development nodes are programmed as future phases and no planning processes have commenced as yet. The proposed development of the Sibaya node will require a significant expansion of current infrastructure. This has been planned but not installed.

CONTACT PERSON: SITHEMBISO MTHEMBU - 031 560 1925, [email protected]

www.thdev.co.za

SIBAYA

www.bridgecity.co.za

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The Wewe Driefontein Project is based on approximately 621 hectares, designed to be a fully integrated township focusing on creating employment with inclusionary housing. The layout plan clearly shows the components of the integrated scheme, consisting of general industry, light and service industry, parks, commercial, retail, housing, agricultural and conservation. The market needs assessment together with independent feasibilities, clearly highlight the need for this

development.

The development area is strategically located within the 5 to 10km radius of the new King Shaka Airport and Dube Trade Port, situated in the main Aerotropolis and Northern Development corridor from the new King Shaka Airport, also recognised as a Flagship Development by Provincial and Local government authorities and the Department of Human Settlements. General industry is expected to be the main catalyst to create employment and housing opportunities. The terrain is flat and suitable for this purpose while the existing road network and, importantly, the new proposed Western Bypass will act as the main mobility corridor to the north and south of the Northern Development corridor from Durban/King Shaka Airport through to Richards Bay and Mozambique. The Western Bypass passes through the eastern boundary of the project.

This project is currently privately-owned, but engagement with the public sector is proceeding, considering that the project will achieve the outcomes that are aligned to government policies. At present, the develop-ers are in the zoning process and have finalised all specialist studies including handing-in the final environ-mental impact assessment. The investment required is dependent on the phasing and current negotiations of the partnership in the application, but an investment of approximately 155 million Rand for bulk and link services for the initial phases is sought.

CONTACT PERSON: PAT CONWAY - 032 946 2927, 082 444 1654, [email protected]

WEWE DRIEFONTEIN – KINGS ESTATE

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Finningley offers a unique opportunity to partner with the estate landowners of over a hundred years, in developing their heritage, by creating a ground-breaking, self-sustaining ‘city in the sun’ on the beautiful South Coast of KwaZulu Natal, South Africa. Cutting-edge innovation and sustain-able green technology will be implemented from inception. The development spans an area of 2640 hectares.

The project includes:• Infrastructure-buildingstrong&greenforthefuture.• Industrialandcommercial-bringinginternationalexpertiseandtechnologiesandprovidingsustain able job opportunities.• Residential-innovativeurbanarchitecture.• Leisure-world-classresorts.• Education-universities,researchfacilities,schools.• Aerodrome-includingaroadsafetycentre,motocross-track,off-roaddriving/testtrackand drifting area.

Finningley Estate is located on the Farm Clansthal 1202ET, the Farm Crosley No 14718 and Umkomanzi Drift No 1357, KwaZulu-Natal, between Umkomaas and Scottburgh on the KwaZulu-Natal South coast, some 60 km from the city of Durban.

The environmental impact assessment has been completed and ROD issued. The amount sought in invest-ment capital is R600 million. The project encompasses necessary infrastructure in partnership with eThek-wini Municipality.

CONTACT PERSON: RUSSELL CHAPPE DE LEONVAL - 031 266 9525, [email protected]

FINNINGLEY GROWTH SPHERE

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The 300 hectare site identified for the sub-regional metropolitan town centre serves a catchment of some 200 000 people. The project has four phases:Phase One: retail and business developmentPhase Two: public precinct with the following public investment to occur subject to completion of business plans with respective government departments:

• NewMetropolicestation• MunicipalCustomerCareCentrewhichwillaccommodatevariousgovernmentservicedepartments, and a library• Socialwelfarecentre• Publicparkwithsportandrecreationalfacilities• Newrailwaystationintegratedwithnodaltransportinterchange• Healthfacilities• Smalltraderfacilities

Phase Three: 500 low cost RDP Units

Phase Four: 1000 middle income gap housingMpumalanga Township is close to Hammarsdale situated within the outer west region of eThekwini. The eThekwini Municipality’s private sector partner is the ERIS Property Group. The partnership between ERIS and eThekwni Municipality only extends to Phase One of the town centre. The partnership resulted in cost-sharing in the provision of bulk infrastructure that lead to the construction of the 18000m2 retail shopping centre. Further partnership opportunities could be available for the residential development component. The Town Centre Precinct Plan was adopted by the municipality in 2009. Only Phase One is zoned and ap-proved at this stage. Construction undertaken so far includes a shopping centre with a taxi rank. Phase Two is currently going through approval stages. All bulk infrastructure is in place for phases One, Two and Three.

CONTACT PERSON: PETER GILMORE - 031 311 4227, 083 378 8737, [email protected]

MPUMALANGA NEW TOWN CENTRE

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The project was initiated by a request from the National Department of Transport, to develop an Inland Intermodal Terminal / Dry Port as part of the National Strategic Infrastructure Plan (SIP), and specifically within the mandate of the SIP 2 (Durban-Gauteng Freight Corridor) Committee. Initially it was planned as a private sector initiative, with the facility to progress to a Public-Private Partner-ship (PPP).

At an early stage, it was recognised that significant potential existed to extend the planned project to in-clude a number of other complementary initiatives which would elevate the project to a major integrated development. This would include all aspects of logistics and warehousing, commercial and industrial devel-opment, residential housing, a hospital and training centres, all sited in Cato Ridge, which lies to the south and south west of the N3 Freeway and the Cato Ridge township, approximately 46km from Durban centre.

The following component developments are envisaged:• Transportandlogisticsinfrastructure• Warehousinganddistribution• Industrialandmanufacturingfacilities• Commercialandretailfacilities• Residential• Educationandhealth

The development is being planned by City Ventures Group, a subsidiary of City Couriers, a major logistics provider in South Africa.A joint venture agreement with a major local concern is about to be concluded. Details are confidential and cannot be released at this stage. Engagements with the government at national, provincial and municipal levels with all authorities and departments with an interest and stake in the pro-ject have been on-going for the past few years. There has been support for the project at all levels. The first phase of the development of the dry port element requires R1.2 billion. The other elements are being quan-tified in terms of the overall master plan.

Existing local infrastructure (as indicated in the bulk services studies which have been done, for instance) is currently sufficient for the initiation of the project. Local road interchange upgrade is necessary, and has been planned in engagement with SANRAL, etc. Further infrastructural upgrades will become necessary as the development expands, and will have to be addressed in the medium term by eThekwini Municipality. These issues are being discussed in engagements with the appropriate authorities.

CONTACT PERSON: STEVE BALDWIN - 031 580 2000, 083 700 4313, [email protected]

CATO RIDGE INLAND INTERMODAL TERMINAL

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