A huge development project on the cards for East London could turn the city into the shopping mecca of the province.
According to Finance MEC Billy Nel, a proposal worth R6 billion is taking shape - R3 billion of which involves a supersize, hyperama-style shopping centre at a mystery venue in East London.
"It would be like Eastgate in Gauteng," said Nel. "There is nothing even vaguely like it in the province."
The balance of R3 billion is for commercial office developments in the province from East London to Mount Ayliff.
"It's early days yet, but of course we would like the development to go ahead," said Nel.
"Treasury will do everything in its power to facilitate it. No one would be willing to invest that kind of money if they hadn't done their homework, so if they're happy to go ahead - we're thrilled."
Economic Affairs and Tourism MEC Andre de Wet said the developer had been negotiating the sale of the land for about three years, and had reported "good progress" on that front.
"They've still got a good bit of work to do, but it seems access to large amounts of capital at very favourable and stable rates is their strong point."
De Wet said he had suggested that the investors make their presentation to the economic development and infrastructure cabinet committee that he chaired.
"The committee comprises the five departments of Economic Affairs and Tourism, Roads and Transport, Public Works, Agriculture and Local Government and Housing. The HoDs are technical advisers, so that we can develop a cross-cutting approach to projects like these."
Buffalo City mayor Sindisile Maclean also confirmed that the deal was being discussed, but refused to name the investors - or the proposed site for the shopping centre.
"The process is under way," he said. "People are working very hard on it. But at this stage I can't give you any more details."
Kevin Wakeford, chief executive of the East Cape Development Corporation, was "very excited" by the proposal.
"It's not often that private developers are willing to take the initiative and put their own money on the table," he said.
"More often they're just nosing around looking to hop on the tails of state expenditure."
He said the corporation had been invited to a pre-feasibility meeting with the developers and other stakeholders late last year, saying it was a rare opportunity which should not be missed.
"Here is a broad-spectrum property investor seeking partnership with the public sector, and we must pull out all the stops to enable, encourage and facilitate this exciting opportunity."
He said any economic activity was an opportunity for players "both up and downstream".
"At construction phase is a whole host of opportunities for small, medium and micro enterprises - from building contracts to catering and accommodation - and once the development is complete, the sky is the limit with tourism, residential development, industry, you name it."
He said no development should be seen outside its "complex context of opportunity" in other fields.
Public Works MEC Christian Martin could not be reached for comment.
"He is on sick leave at the moment," said his spokesperson, Jason Lloyd.
"He had an eye operation."
The Dispatch reported in November that Cape Town developer Thynk Property Partners is planning a R500 million shopping mall in Gonubie, where the Cocobana night club now stands.
Thynk has already bought the land and promised to partner Buffalo City Municipality in a road construction project linking Beacon Bay with the 55000m² mall. Construction is scheduled to begin in about 18 months.
Another huge development project on the cards is a R200m upgrade at the Vincent Park mall.
Daily Dispatch
Publisher: I-Net Bridge
Source: I-Net Bridge
