By Sure Kamhunga

Diversified investment group Abalengani Group will spend more than R1,1bn on upmarket residential and hotel projects in north Johannesburg and the Drakensberg.

The company has decided to venture into mining, initially targeting four countries including SA. Newly appointed CE Ashruf Kaka said on Thursday the group, which also sells rare and exotic vehicles and marine equipment, was building 450 mountain lodges as well as a hotel, spa, gym and wellness centre on its 1000ha Nondela Drakensberg Mountain Estate.

The residential section of the project would be completed in 2010, and the hotel, spa and conference centre a year later.

Infrastructure developments on the estate were already under way and these should be completed by the end of this year, while the championship golf course should be ready by September next year.

“The group owns a number of residential and commercial properties but the most notable is the Nondela Drakensberg Mountain Estate project and the Icon residential developments in northern Johannesburg," Kaka said.

The Drakensberg project has a budget of more than R1bn .

Part of the allocated budget of R120m has been used to complete upmarket apartments in Hyde Park, while a similar project in nearby Sandhurst ha s been put on hold until municipal infrastructure is installed.

Kaka said the group had introduced a concept called combined stand investment (CSI) at the Drakensberg project, where buyers would be offered a 10000m² stand with sectional title rights to allow them to sub divide it into two stands of 5000m².

“CSI offers buyers the choice of developing two sectional title units on one stand or building a larger unit. Nondela also offers an Ernie Els-designed championship golf course designed to US PGA standards, and other facilities planned include a hotel, spa, gym and wellness centre," Kaka said.

He said Abalengani was expanding into the mining and lifestyle sectors and already had an interest in a platinum tailings treatment facility through its subsidiary, Kilken Platinum.

“The group is looking at expanding its mining portfolio over the next few months in Botswana, Democratic Republic of Congo and Zambia, and an announcement will be made in due course."

The group opened a luxury future exotics l ifestyle centre at the V&A Waterfront in Cape Town early this year, where buyers can choose from a range of exotic and rare vehicles as well as marine and aviation vessels. The group was expanding this business and would open another branch in Johannesburg, he said.

Kaka said his mandate was to spearhead the group’s expansion and develop additional revenue streams, particularly the new ventures in the lifestyle and mining sectors.

“My new role will entail managing the financial services sector (and) structuring the operations and management teams, as well as managing all professional teams employed on our developments. Abalengani expects the aviation part of the business will grow rapidly as this is a sector of the market that seems to be expanding with private charters proving to be popular," he said.

Zunaid Moti, CE of the Moti Group, of which Abalengani is a subsidiary, said the growth of Abalengani had been significant over recent years and Kaka’s appointment would free him up to focus on other areas .

Source: Business Day