Moreland Developments (‘Moreland’), the property subsidiary of the Tongaat-Hulett Group and one of South Africa’s leading commercial and residential property developers today announced a joint venture agreement and a new approach to marketing local residential and tourism properties abroad. At a media reception held at the exclusive Zimbali Coastal Resort on the KwaZulu-Natal north coast, Moreland announced that it has entered into a joint venture with respected international resort property developers and marketing specialists, IFA Hotels & Resorts a subsidiary of International Financial Advisers (‘IFA’), a Kuwait-based company with extensive experience in developing, marketing and selling properties into the top-end international buyer markets.

IFA is a public company listed on the Kuwait Stock Exchange and has a market capitalisation value of US $500m. IFA is currently responsible for international sales of the multi-billion dollar Palm-Jumeirah island estate development in Dubai and  also controls premium accommodation tourism investments in Zanzibar, Lebanon and Portugal. IFA also brings to the province direct access to an established network of tourist markets in Europe – in particular France, Germany and the Benelux countries –Russia, the Middle East and Africa.

In terms of the new joint venture with Moreland, IFA is to acquire a 50% equity stake in the Zimbali Coastal Resort from Moreland. In addition, IFA subsidiary, IFA Hotels and Resorts, has purchased a 100ha property in the coastal resort for development of a new 300-bedroom five-star resort hotel overlooking the Indian Ocean. The new project, to be named the Zimbali Hotel and Beach Resort, will feature a beach vacation club, a spa, country club, resort retail amenities and luxury villas to be developed around a new 18-hole golf course. The project will open in 2007 and a top internationally recognised branded hotel operator will be contracted to manage the property.

The combined value of the acquisition by IFA of 50% of the equity in Zimbali Coastal Resort and the planned development of the Zimbali Hotel and Beach Resort makes this transaction one of the largest foreign tourism investments ever undertaken in KwaZulu-Natal and a very significant investment into the South African tourism industry. The total added economic value of the first phase of the joint venture’s intended development plan is estimated to be in the order of R2.5bn and this is expected to increase to R4bn in new capital investment attracted into the area over the five-to-ten year planning / development horizon.

Speaking at the launch, Tongaat-Hulett Group CEO, Peter Staude – who is also a director of Trade and Investment KZN (TIK) said: “We are delighted to welcome IFA as our partners in unlocking the international stature and potential of Zimbali.  This  JV is part of Tongaat-Hulett’s overall strategy to unlock more than R1 billion in value from the Group’s property holdings.  We are now reaping the rewards from Moreland’s co-ordinated planning process, which commenced in the 1980s in response to the urban expansion pressures on the Group’s sugar cane land north of Durban and Moreland’s R1 billion investment in infrastructure, which has made the Umhlanga – Zimbali corridor, one of South Africa’s top three property investment areas.  These factors have established a sound base for Moreland’s future earnings growth, helped by the current low interest rates and the strong property market.  Moreland is our star performer this year measured by growth in earnings.”

“Wearing my TIK hat, it is also pleasing to see how Moreland’s developments are boosting the KZN economy and creating much needed jobs.  One of the constraints to the region’s rate of growth is the bulk infrastructure capacity, and we continue to work with government to find solutions to these problems in order to achieve the region’s true economic potential.”

Announcing the joint venture, Moreland Managing Director and Tongaat-Hulett director, Gordon Hibbert said: “Since its inception in 1996, the Zimbali Coastal Estate and Resort development has achieved phenomenal success as a landmark premium resort and residential estate initiative in South Africa. We have developed and sold some 340 residential units in the resort and to date total investment in the eastern precinct of the estate exceeds R1bn. In December the Moreland / IFA JV will present an additional 27 key sites to the national and international markets by way of an innovative property auction.

“We are delighted to have IFA as our new partners in unlocking the incredible value and potential inherent in Zimbali and regard the involvement of IFA and IFA Hotels and Resorts as representing a long-term commitment to tourism and economic development in KwaZulu-Natal. IFA is one of the first major international investors to commit directly to the future of tourism in this province and we are delighted to have concluded this important joint venture agreement to unlock this.

“We have over the past few years been looking for a partnership that would open up new international markets and are confident that IFA has the credentials, experience and resources to expose our property developments to key markets abroad.”

The M4 coastal highway currently bisects the Zimbali Coastal Resort and Moreland has recently successfully obtained approval from the provincial government to relocate this highway to the west of the resort, thereby creating a single land entity, free from passing traffic, adding substantial value to both existing and future Zimbali properties. Subject only to finalising bulk services agreements with the Ilembe and KwaDukuza authorities, construction of the new diverted M4 will commence in January 2004 and will be completed by December 2005. Thereafter, the existing roadway will be used as an internal feeder road for residents and visitors.

The Zimbali Coastal Resort is considered to be one of the leading property developments in South Africa and boasts Afrisun’s five-star Zimbali Lodge, rated by Conde Naste Magazine as one of the top-31 hotels in the world.  It also boasts an 18-hole Tom Weiskopf designed golf course, which is currently rated among the top-15 courses in South Africa, country club facilities and tennis courts, a beach club and an extensive network of nature trails within a secure perimeter estate. Future developments for Zimbali Coastal Resort include the 5-star Ocean View Hotel, due for completion in September 2005, and The Imbali, a 20-chalet boutique hotel and renewal centre.

In an innovative development, Moreland and IFA have teamed up with two of South Africa’s leading property estate agencies, Pam Golding Properties (PGP) and Realty One, to market the 27 new Zimbali residential sites to buyers both locally and abroad. An ‘invitation-only auction’ is scheduled for 14 December 2003 in order to offer the properties to buyers.

Over the past ten years Moreland has successfully developed commercial and residential properties north of Durban, including the acclaimed Mount Edgecombe Country Club Estates, Umhlanga Ridge, La Lucia Ridge, Somerset Park, the Gardens, Broadlands and Ilala Ridge residential property projects. Major commercial projects include the Umhlanga Ridge New Town Centre, which houses the R1.4bn Gateway Theatre of Shopping, and La Lucia Ridge Office Estate where the major tenant si Unilever. Since 1992, Moreland has developed in excess of 1 000 hectares of land, resulting in new capital investment of more than R10bn (US$1.5bn) flowing into the northern precinct which has seen the creation of more than 30 000 permanent and
20 000 construction jobs.

By next Christmas, the R700m Sibaya Casino and Entertainment Kingdom will open near Umdloti and Government is expected to make an announcement of the massive new Dube Trade Port and King Shaka International Airport development near La Mercy.

ENDS

Statement Issued By:
Mr Gordon Hibbert
Managing Director
Moreland Developments (Pty) Ltd

For Further Details: www.moreland.co.za
Call: Nicole Chetty on +27 31 560 1912
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