The properties are land parcels totalling 130 000 ha owned jointly by Sappi and Lereko, the black economic empowerment (BEE) company headed by former North West premier Popo Molefe, former tourism & environment minister Valli Moosa and entrepreneur Lulu Gwagwa.

Lereko is opening up the land to project proposals from developers. They would become joint-venture partners with Sappi and Lereko.

Most of the land is in KwaZulu Natal and Mpumalanga. Many of the KwaZulu Natal properties are in the prime midlands region of Greytown and Howick, or near St Lucia and Richards Bay on the north coast. Other KwaZulu Natal properties are near Underberg and in the Champagne Castle region of the Drakensberg.

The Mpumalanga properties are near Sabie, Pilgrim's Rest, Barberton and Belfast.

"We are open to any proposals," says Gwagwa, who runs Lereko's property business. "The obvious possibilities are for golf and eco estates, hotels, tourism facilities and retail and commercial developments.

The 130 000 ha is about a third of Sappi's 360 000 ha of land that the company cannot use for forestry plantations.

"So the proviso is that any development must not compromise adjacent forestry development," Gwagwa says.

She says once a proposal is approved, the property will be injected into the joint venture by Sappi and Lereko. Other specialists and financiers could also be offered equity in the project.

Lereko acquired a 25% stake in Sappi's land holdings for R220m last year.