Moreland climbs to new heights as Tongaat Hulett Developments

Posted On Wednesday, 15 August 2007 02:00 Published by Commercial Property News
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Well known land management and property Development Company, Moreland, has changed its name to Tongaat Hulett Developments.

This change follows the corporate activity, which resulted in the unbundling and separate JSE listing of Hulamin and the introduction of BBBEE shareholding in both Tongaat Hulett Limited [25%] and Hulamin [15%]. Tongaat Hulett has transformed into an integrated agri-processing company, including land management, property development and agriculture operations.

Tongaat Hulett CEO, Peter Staude, says ‘The biggest decision has been to go for a single brand identity that leverages the strengths of the whole company and eliminates competing brands; hence all Tongaat Hulett operating companies now share one common identity. Tongaat Hulett Developments together with Ayavuna will facilitate the implementation of the Mphakathi Trust aimed at benefiting black communities neighbouring our developments’.

Hixonia Nyasulu, the Chair of Ayavuna Investments, added that our expertise in working with communities added to Tongaat Hulett’s passion for KZN and community development will ensure that communities have direct interest in the effective implementation of property development initiatives in their neighbourhood.  

The official Tongaat Hulett Developments celebration on Monday, 13 August 2007, marks the start of a repositioning process, which includes a number of significant changes and new priorities.

Gordon Hibbert, MD of Tongaat Hulett Developments, says that the closer integration of the three Tongaat Hulett operations – viz Sugar, Starch and Developments, and with Steven Saunders joining the team to head up Land Management across Tongaat Hulett, the team has expanded the Development team from 70 to working closer as a 35 000 strong organisation. Gordon further says that; ‘as Tongaat Hulett’s SADC footprint expands, our development horizons are expanding throughout SADC, with greater focus being placed on growth, new land acquisition and transformation. The Developments team has already started leveraging this footprint potential, by exploring investment opportunities beyond Durban north and downstream opportunities in above ground building development phase, in partnership with selected customer.

“These opportunities also include broadening our business model and product portfolio to respond to the diversity of development environments and product needs, like more affordable property, and strengthening the company’s community partnerships in line with the national agenda for socio-economic development,” said Corporate Director, Bongani Gumede.

“One of our biggest opportunities, is developing the Black African property market, as research indicates that this is the fastest growing market segment which is hugely under-represented in property sector investments. Property investment education campaign will be implemented to raise awareness about opportunities in the sector and to encourage investment,” he added.

Tongaat Hulett has always acknowledged local communities and staff contribution in its business success. It is not surprising that long before the BEE legislation came into effect, the company - through its Medium Scale Farmer [MSF] development programme-sold a third [11 000 ha] of its landholdings in South Africa including company housing mostly to black staff and neighbouring communities. In the new BEE structure, TH has included two separate Community Trusts. The Mphakathi Trust has been established to benefit black communities where Tongaat Hulett is engaged in development. This Trust holds seven percent of Tongaat Hulett equity. At the same time employees now own 7% of TH equity through Employee Share Ownership Programme [ESOP] and Management Share Ownership Programme [MSOP].

Tongaat Hulett Developments is committed to continue its holistic and integrated approach to development by forging partnerships with all surrounding communities, special interest groups and government to ensure that through each development, it responds to issues of common concern in a sustainable way. Our corporate initiatives [which will now be supported by Ayavuna] include working closer with communities and different levels of government to increase the pace and affordability of developments by leveraging government infrastructure funding in such developments.

Tongaat Hulett has formulated a detailed long-term sustainable land management-planning model. This model seeks to ensure that commercial agricultural land is primarily available to secure sustainable agri-processing raw material supply [to sugar and starch operations] and where land comes under urban development pressure, the company evaluates the landholdings’ sugar agri-processing value against alternative land uses to optimise its value. To compensate for agricultural land lost to property development, the Company will continue to acquire and facilitate new agricultural land resulting in net growth of land under agriculture.

Where appropriate, Tongaat Hulett Developments transforms the properties to leisure, residential, industrial and commercial and increasingly mixed-use developments, such as of its Zimbali, Mount Edgecombe Country Club Estate, Umhlanga Ridge Town Centre, Izinga, and the recently launched Kindlewood and Bridge City developments-the last of which will link Inanda, Ntuzuma KwaMashu and Phoenix, creating a hub of economic growth.

New nodes in the Tongaat Hulett development planning pipeline include Shongweni, Cornubia [Mount Edgecombe north], Sibaya [Mdloti] and Zimbali Lakes, plus longer term opportunities at LA Mercy [Tongaat], Compensation Flats (west of Zimbali), Tinley Manor, Zinkwazi and Thukela within SA whilst exploring opportunities within the Company’s SADC landholdings.

Last modified on Thursday, 30 May 2013 19:16

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