KwaZulu-Natal Correspondent

DURBAN Moreland Developments and International Financial Advisors (IFA) signed a joint venture agreement yesterday that will see the Kuwaiti-listed multinational acquire 50% of the exclusive Zimbali Coastal Resort near Ballito and invest $100m in the development over the next decade.

Considered one of SA's premier property developments, Zimbali boasts a fivestar lodge rated among the world's top 31, an 18-hole golf course and extensive country club facilities.

More than 340 residential units have been sold since inception in 1996, signalling an investment exceeding a R1bn.

The combined value of the acquisition and planned development of a second five-star hotel makes the joint venture one of KwaZulu-Natal's largest tourism investments and a significant one nationally.

The move also paves the way for marketing local residential and tourism properties internationally. Phase one has an estimated economic value of $350m, expected to rise to $570m in new capital investment to the region over the 10-year planning and development horizon.

Listed on the Kuwait Stock Exchange with a market capitalisation of $500m, IFA is responsible for the international sales of the multibillion-dollar PalmJumeirah island estate development in Dubai and also controls premium accommodation tourism investments in Zanzibar, Lebanon and Portugal.

Moreland, the Tongaat-Hulett property arm, has developed over 1000ha of land since 1992, resulting in more than R10bn in new capital investments being pumped into northern Durban and along the coast.

Yesterday's deal puts KwaZulu-Natal in direct access of an established network of tourist markets in Europe, Russia, the Middle East and Africa.

In terms of the venture, IFA will buy the equity stake from Moreland, while subsidiary IFA Hotels and Resorts has purchased another 100ha property in the coastal resort to develop a 300-bedroom hotel overlooking the Indian ocean.

The Zimbali Hotel and Beach Resort will include a beach vacation club, a spa, country club, resort retail amenities and luxury villas to be developed around an 18-hole golf course.

The project will open in 2007 and an international branded hotel operator contracted to manage the property.

Moreland MD Gordon Hibbert said the group had been seeking a partnership for several years in a bid to gain international exposure and was confident that IFA had the credentials, experience and resources to expose the property developments to key markets abroad.

IFA chairman and MD Jassim Al Bahar said Zimbali formed part of a strategic aim to provide world-class facilities for tourists in prime locations.

Zimbali would link with Zanzibar, where IFA concluded a deal three months ago, to offer international tourists a network of hotels, holiday resorts, time-share as well as vacation club destinations.

Next month Moreland and IFA will present another 27 sites to the national and international markets via an innovative property auction.

Nov 19 2003 07:27:02:000AM Nicola Jenvey Business Day 1st Edition