By Sven Lunsche
The Durban Point development could be 20 years overdue, according to a recent article in the SA Property Review .
For even longer than that various city managements have talked about reviving Durban's Point area, which is integral to the revitalisation of the CBD and the city's beachfront.
But after decades of dithering the project is finally taking off. Construction has begun on the R700m uShaka Marine Park and the Durban Point Development Company (DPDC) has released its first tract of land to private developers.
The eThekwini council's decision to invest at least R300m over the next three years in the necessary infrastructure in the area was initially greeted with scepticism by the market.
But the council's decision to take a 50% stake in the DPDC - the remaining 50% is held by Malaysia's Rocpoint and empowerment group Vulindlela - has given the Point revitalisation the necessary kick-start.
Since then Moreland Development has been contracted as the project manager.
In April a 15 ha tract of land - out of the total 56 ha that comprise the Point precinct - was released to the market. According to Moreland's Neels Brink, the market response to the development has been "phenomenal".
Last month Mandla-Matla Publishing, publishers of the daily Ilanga newspaper, became the first company to buy land in the area. A further R50m worth of intended investments have been announced since the property came onto the market.
Brink envisages a 10-year timeframe for the sale and development of the precinct that comprises "potentially some of the most valuable urban real estate in the country".
The development could well spread beyond the 375 000 m² of property earmarked by the DPDC. "Depending on future infrastructure enhancement, we could see an additional 200 000 m² of bulk being approved," he says.
The success of the venture is crucial to Durban's urban renewal project. The high-paying tourists have gradually disappeared from the inner city and the city's beachfronts and the Point, in particular, have largely been abandoned.
"We didn't want to be faced with further huge disinvestments from the city and the regeneration of Durban Point is a vital extension to the city centre's regeneration," says eThekwini city manager Mike Sutcliffe.
He ascribes the early successes at the Point to "strong political leadership, strong professional management of the project and some focused financial interventions by the city".
These interventions include buying into the DPDC, upgrading the road infrastructure in the area and being instrumental in the financing of uShaka. The municipality has taken the bulk of the equity in the marine project and is, thus, providing the bulk of the funding. The Development Bank of SA has put in R50m of equity and R200m in loan financing was raised through Citibank.
uShaka has proved the catalyst in opening the Point precinct. Construction of the marine park started in January and it is scheduled to open in April next year. It's an ambitious project, but if successful, will almost certainly guarantee an influx of tourists. Durban's existing aquarium remains the city's most visited tourist attraction.
uShaka will comprise the world's fifth-largest aquarium, outdoor displays and exhibits, a freshwater park, recreational facilities and retail space for small shops selling food, arts, crafts and other goods and services. So far about 170 retail applications have been received for the park. The aquarium will feature marine life from the Indian Ocean and the 1 250-seater pavilion will have the facilities to allow visitors to swim with dolphins.
The Point development will take place in a series of six precincts, starting next to uShaka and moving along a series of canals that will form the spine of the Point project.
Filtered water from the marine park will be pumped into the canals and from there back to the sea. The canals should be filled by December, by which time Brink hopes to have sold 50% of the first precinct.
Developers are being encouraged to build properties of three to four storeys or higher, with the ground floors devoted to retailing, entertainment and restaurants. Wide boulevards and open spaces such as urban squares, avenues and parks will separate the buildings. A strong emphasis is placed on safety in the area - a centralised security system will be set up with camera surveillance.
A number of financial incentives will be available for developers in the Point. Special depreciation allowances of 20% over five years will be granted as the area has been designated a special urban regeneration zone.
Developers will also have to prove their empowerment credentials by ensuring that at least 40% of the work goes to previously disadvantaged companies, of which half have to be African.
The Point precinct could also receive a boost if, as expected, Portnet decides to widen the harbour entrance. The widening of the entrance is the subject of an environmental impact assessment study.
If it does get the go-ahead, which is likely, there are plans for a cruise liner terminal adjacent to the Point precinct. If the widening is not approved, the land could become available for an extension to Durban Point.
Publisher: Financial Mail
Source: Financial Mail
LIGHTS OF THE CITY SHINE BRIGHTER.
Posted On Thursday, 21 August 2003 02:00 Published by eProperty News
The Durban Point development could be 20 years overdue, according to a recent article in the SA Property Review.
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