THE R42m closure and relocation of the M4 coastal road to unite the exclusive Premiere multi-million-rand Zimbali Coastal Resort development, illustrates the potential for harnessing public and private sector co-operation for mutual benefit.

Officially called Main Road 398, the road has been realigned as part of the overall development plan set out in the joint -venture between Moreland Developments and IFA Hotels & Resorts.

The realignment  has enhanced the value of Zimbali by uniting the first half of the overall development into a single land entity as well as opening up the development of the second half, the latter to include a second golf course, hotels, an office/retail node and residential units.   Zimbali has and continues to bring significant investment and economic opportunities to the region.  Sections of the old road will facilitate a downscaled internal feeder road that, releases land parcels for future development.

“The road of partnership between a private listed company, provincial and national government is witnessed in the building of the new road. This is one of the first occasions that these three separate entities have worked together and its future implications are good for business, the regional economy and job creation,” Moreland Developments executive Neels Brink said.

International Financial Advisors (IFA) chairman Jassim al Bahar echoed these sentiments, saying “The interests of all parties is significantly enhanced by such partnerships, as evidenced by the extraordinary success story of Dubai where no stone is left unturned in promoting development.  The vision and foresight of the authorities is commendable and we are greatly encouraged by the continued success of Zimbali.”

The public-private sector partnership offered a road less travelled for both parties.  Other than dividing Zimbali, the old road was rutted and in a poor condition. Constructing the new road alleviated the financial burden to the provincial government for on-going road maintenance, while the design of the new road introduced traffic-calming measures as a deterrent to heavy vehicles from avoiding the tolled national road N2.

The project also created around 300 new jobs, further enhancing the employment opportunities initiated by the KwaZulu-Natal north coast property boom.

In keeping with the joint venture partners’ demonstrable commitment to empowerment, the road contract secured 40% of the infrastructure costs to emerging black companies.

Grinaker-LTA Earthworks (South Africa), as the principle contractor, awarded Duyaza Construction, ZEK Construction, Nishosho Contractors, Supermining Civils and Vumani Civils a portion of the realignment and internal servicing work.

Moreland and IFA signed a joint venture agreement in November 2003 that saw the Kuwaiti-listed multinational acquire 50% of Zimbali and commit well in excess of $100m in new investments over the next decade.

Considered one of South Africa’s premier property developments, Zimbali Coastal Resort boasts a five-star lodge rated among the world’s top 31, an International signature 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  R1bn. Last year land sales totalled more than R260m, as IFA subsidiary IFA Hotels & Resorts offered the multi-billion-rand investment a global marketing platform across an established network in Europe, Russia, the Middle East and Africa, and more South Africans made lifestyle decisions to invest in quality residential estates, built on the solid marketing platform and branding Moreland established in South Africa.

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 Kuwaiti Stock Exchange with a market capitalization of $500m, IFA is responsible for the 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.

President and COO of IFA Hotels & Resorts, James Wilson, the driving force behind IFA’s development initiatives in Africa and the Indian Ocean, said “It was particularly encouraging to us that the provincial and local government understood the wisdom of the realignment and we hope that it has set a precedent that will be repeated in facilitating the continued development of the region.”

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 KwaZulu-Natal north coast.

Ends
Melanie Roberts
PR- MIFAZ
IFA HOTELS RESORTS
ZIMBALI COASTAL RESORT
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