PHARMACEUTICAL billionaire Stephen Saad has emerged as the mystery buyer of controversial mining magnate Mzi Khumalo’s crumbling multimillionrand coastal resort estate in KwaZulu-Natal.

Sunday Times has established that Saad splashed out R43.3million for the incomplete fivestar development, a sea-facing hotel at Zimbali Coastal Resort on the north coast.

And now plans are afoot to flatten the structure and build 14 luxury homes with priceless views of the Indian Ocean.

Initial plans for Khumalo’s five-star development — valued at more than R300-million once complete — included a 120-room hotel, 10 villas and 26 sectional title units.

A hotel designer and importer of Eastern furniture and antiques had also been contracted to furnish the hotel and villas.

But this week it emerged that Saad’s company, Zestigyn Pty Ltd, bought the estate from Khumalo’s liquidated company Metallon Hotels & Leisure. The transfer of the property on soughtafter Forrestwood Street was finalised in October last year.

Saad, who founded Aspen Pharmaceuticals, one of the largest manufacturers of generic medicines in the southern hemisphere, in 1997, declined to comment. He referred all questions to his business partner and aviation company millionaire, Vincent Christoforos, who engineered the deal.

Christoforos said the new plans for the site included the development of 14 luxury double-storey mansions for their friends and associates.

He added that the development was on track.

“We are going to do something very special on the hotel site . and although we have a lot of people interested [in buying the houses], it’s not open to the public. The properties will be just for friends and associates,” he said.

Properties on the market in the area are priced from just over R1-million for an 867m² vacant plot to more than R42-million for a 1773m² five-bedroomed home, according to Pam Golding Properties’ books.

Christoforos, who wants to start construction in March, said their development would maintain Zimbali Coastal Resort’s exclusivity.

Property owners in the exclusive enclave — which was established in 1996 and has grown to include about 1000 residents — include controversial arms deal consultant Fana Hlongwane, football boss Kaizer Motaung, former Proteas captain Shaun Pollock and the ANC’s KwaZulu-Natal legislature chief whip Cyril Xaba.

Last month, globe-trotting Hollywood couple Angelina Jolie, 35, and Brad Pitt, 47, — fondly known as Brangelina — booked a R50-million Balinesestyle villa in Zimbali.

The couple brought along their children, Shiloh, Maddox, Zahara, Pax, and twins Vivienne and Knox.

The daily rate for the ultraluxurious four-bedroom, double-storey villa taken by the couple was R8 500.

Saad, who is ranked 20th in Forbes magazine’s inaugural list of the 40 richest people in Africa with an estimated fortune of R5-billion, reportedly already owns a private residence in Zimbali.

Khumalo, a one-time business associate of slain mining boss Brett Kebble, this week could not be reached for comment about the sale of the site for his estate, which he acquired for R22.8-million in 2004.

The hotel and villas were scheduled for completion in November 2005.

But Khumalo soon ran into financial difficulties on the development, leaving building contractor — JSE-listed Stefanutti Stocks — high and dry.

Stefanutti Stocks, which finally called it quits in 2005, was locked in a legal tussle with Khumalo’s company for four years for an outstanding amount of R39-million, including interest.

On Friday, Stefanutti Stocks chief executive Willie Meyburgh said the nonpayment by Khumalo’s company had resulted in the dispute going to court and a liquidation order being granted last year.

“This resulted in the auction of the property . and the final account is currently being prepared by the liquidators for presentation to the Master of the Court. We have not been paid yet but expect payment to be imminent,” Meyburgh said.

Khumalo, who held shares in more than a dozen companies — including Premier Soccer League football club Lamontville Golden Arrows, and a stake in a R50-million private jet — has maintained a low-profile since a litany of courtroom dramas with the Reserve Bank and creditors over the last five years.

The former political prisoner spent 12 years on Robben Island for his activities as an Umkhonto we Sizwe operative.

Khumalo reportedly wound down his operations in South Africa last year, and today his gold mining activities are centred in Zimbabwe.

Source: Sunday Times