July 12, 2004
By Samantha Enslin
Durban - Durban Point, a mixed-used waterfront development close to the harbour mouth, is expected to be a catalyst for renewed investment in the city centre and has already triggered a significant appreciation in property values in surrounding areas.
Jeff Radebe, the minister of transport, said at the launch of Timeball Square on Friday: "What is ... encouraging is that the Point redevelopment is occurring alongside other important initiatives such as the extension of the International Convention Centre, the development of the Durban harbour through the National Ports Authority, the steaming ahead of the Dube Tradeport and also plans to upgrade general transport infrastructure in preparation for the 2010 Fifa World Cup."
"All these developments show that we have turned the corner from the 1980s, where we saw a substantial decline in investor confidence in the region and in Durban's beachfront in particular."
Since the Durban Point development began, property values in South Beach have doubled.
The Durban Point development is a public-private partnership between the eThekwini municipality, as the major shareholder, and Rocpoint, which is a joint venture between the Malaysian-based Renong group and local empowerment company Vulindlela Holdings. Moreland is the project director.
Durban Point has attracted bulk land sales of 135 000m2, totalling R140 million. From next year another 275 000m2 will be released.
Neels Brink, Moreland's resort development director, said: "The ripple effect from the private sector will amount to R1 billion over the next three years."
The eThekwini municipality has budgeted R300 million over the next five years for upgrading and developing infrastructure in the area.
Timeball Square is the central area of the development and takes its name from the original Timeball, which was installed between 1860 and 1880. It was dropped at noon each day to assist in the synchronisation of timepieces.
Phase one of Durban Point includes the R735 million uShaka Marine World, which opened in May. Sixty percent of the Durban Point development, which will be built around a canal system, will be residential, with the balance being retail, offices and hotels. A small craft harbour is also being planned.
The apartments, most of which have been sold to local people, have fetched prices of between R1 million and R4.5 million.
The benefits of this development for the city are already evident. Radebe said that according to a cost-benefit analysis by the Development Bank of Southern Africa, last year it was estimated that the increase in the rateable value of existing properties would be R330 million over the next 10 years. But the latest results show that the increase will be achieved much faster.
"Initially, it was thought the project would take 12 years to complete but we now think it will take seven years," said Mzi Khumalo, the chairman of the Durban Point Development Company.
The rejuvenation of the Durban Point has been on the cards for many years, but attempts by private investors have failed to start the development.
Brink said factors in getting a project like this going were "vision, institutional, political and investor support, and a good technical team".
Publisher: Business Report
Source: Business Report
