A construction deal worth R210-million for the first phase of Beacon Bay's Triple Point development was handed over to JSE-listed engineering giant Group Five on Thursday.

The contract that will kick off in August includes the construction of 200 one, two and three bedroom apartments.

Later phases of the R500-million development will include retail and office space as well as a four-star hotel expected to be built next year.

Novate Properties' strategic development manager, Grant Wheatley, said the project's go-ahead had been reached after the first building of 70 apartments had sold out.

The second tranche of 65 apartments has now been released.

"We believe Group Five's appointment significantly reduces the risk of this project to us, the developers, as well as to our investors in the project," said Wheatley.

Managing director for Group Five Housing Frank Enslin said his team was delighted to be working on the "ambitious project which is similar to others Group Five has successfully completed, amongst these, St Michaels on the KwaZulu-Natal south coast".

Enslin said that contracts director for St Michaels Eric Higgitt would lead the construction team at Triple Point. "Eric lived in East London for almost 10 years and attended Selborne College before leaving for Johannesburg, where he joined Group Five as a bursary student. He has approximately 20 years' experience in the field of upmarket residential construction," he said.

Wheatley also announced that Group Five would run a training programme in East London and offer accredited training opportunities to unskilled and unemployed people in the city.