Wilson Bayly Holmes Ovcon (WBHO) has boosted its stake in the KwaZulu-Natalnorth coast's Simbithi Eco-estate development to 50%, following the successof the first phase .

The JSE Securities Exchange SA (JSE)-listed construction company hada 20% stake in the initial development, launched in December.

Since then, more than 90% of the 260 sites have been sold .

The five-phase development which includes land sales, infrastructure,club houses, golf courses, fitness centres and residential properties isexpected to pump about R6bn into the local economy .

WBHO Construction property developments director Michael Simpson saidthe group had investigated the project thoroughly before committing its resources.

The success of phase one warranted the increased stake in phases twoand three, he said. Fellow director Bernie Blomfield said the group would piggy-back on building work generated by the Simbithi development.

The increased stake also gave the group which already held the rightsto build the Sabuti cluster home development in phase one the opportunity to tender on individual building contracts, once new owners began developing their sites, he said.

On completion, the Simbithi development will include 2 000 houses onthe north coast between Ballito and Salt Rock. Land prices in phase one ranged between R375 000 and R500 000 .

WBHO shares, which have risen 16% this year, closed down 2c at R18,80on the JSE yesterday.

Business Day