A further R1,8bn investment in the luxury Zimbali resort on the KwaZulu-Natal north coast was under way in a joint venture with Moreland, IFA Hotel & Resorts vice-president of South African and Indian Ocean operations Phillip de Sylva said on Wednesday.

IFA, the JSE-listed subsidiary of a Kuwaiti company, owns the Zimbali resort and is also a 19,25% shareholder in the Boschendal estate outside Franschhoek, which De Sylva said had already achieved about R500m in presales of its planned residential development.

Addressing an Africa and Middle East conference, he said that the planned R1,8bn investment in Zimbali would be spent on residential development, at least three five-star hotels, leisure facilities, two championship golf cou-rses, and commercial nodes.

The existing Zimbali Lodge is a 78-room boutique hotel.

De Sylva said the potential existed to develop 2,500 homes, less than 15% of which had been realised so far. Of these units, 1,500 homes would be constructed on land adjacent to the resort on the Tongaat River.

IFA is in a joint venture with Moreland Developers in the project.

Canadian-based Fairmont Hotel Group has been appointed to operate the hotel and resort, which will be known as the Fairmont Zimbali, offering residential and real estate opportunities.

With regard to Boschendal, De Sylva estimated that gross land sales would generate about R2,2bn over the next 10 years, 5%, or about R120m, of which would accrue to the local community.

Plans have been drawn up for the development of 20 founder estates, which would sell for R20m each, 10 of which have already been reserved.

There will also be farmyard estates, a 500-home retirement village, an 80-room boutique hotel, a shopping centre, offices and apartments.

Business Day