September 17, 2004

By Philani Makhanya

Movie mogul Anant Singh has received the green light to develop the valuable Natal Command site as a film studio, but with new conditions.

Acting Local Government Minister Mike Mabuyakhulu has recommended that the original contract be amended and that loopholes be tightened to ensure that the eThekwini Municipality is not disadvantaged in the long term.

Singh, the owner of Videovision Entertainment, had been given the go-ahead to buy the prime site on the Golden Mile for R15 million.

However, the move outraged property developers and business people, who argued that the market value of the site was much more than R15 million. The property is estimated to be worth about R100 million.

Mabuyakhulu made the ruling yesterday after the eThekwini Municipality asked him to intervene.

One of the criticisms levelled against the sale was that only a portion of the property would be used as a film studio.

But the recommendations put forward by Mabuyakhulu have allayed fears that a film studio would not be a core activity of the project.

One of the conditions stated that attractions such as a "Studio Walk" Experience - incorporating street parties, premieres, live entertainment and restaurants, bars, accommodation and parking - be classified as non-core activities.

Mabuyakhulu said: "The motivation for the sale is that of local economic development through the development of a film industry for Durban ... I believe that the motivation was sound and is similar to other initiatives undertaken by the province, the city and competing metros.

"In order to ensure that the land is used for the intended purpose, the municipality has incorporated a 'claw back' provision in the sale agreement, providing that if the portions of the land are sold for non-core activities then the municipality will recover a share of the real value of the land."

Mabuyakhulu also urged the municipality to get another legal opinion to satisfy itself that it had not acted outside its own policy in selling the property in a private bargain.

eThekwini Mayor Obed Mlaba welcomed Mabuyakhulu's conditions, saying "he wants to make sure that we have a legal document that protects us".

"All the conditions are there to ensure that the project gets off the ground ... We are optimistic that we are now going to move forward in building a film studio that will put Durban on the map," said Mlaba.

Singh, who is at the Toronto Film Festival in Canada, could not be reached for comment.