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Cornubia mixed-use development, eThekwini municipality, South Africa

8th April 2016

By: Sheila Barradas

Creamer Media Research Coordinator & Senior Deputy Editor

  

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Name and Location
Cornubia mixed-use development, eThekwini municipality, KwaZulu-Natal, South Africa.

Project Description
Tongaat Hulett Developments, together with the eThekwini municipality, proposes to develop a 1 200 ha mixed-use, mixed-income development, incorporating industrial, commercial, residential and open-space uses. The project will yield affordable and sustainable housing and tenure options for a range of income groups and has the potential to accommodate more than 50 000 dwelling units and house 200 000 people.

The vision is to establish an integrated and sustainable settlement within the parameters of the Department of Human Settlements' Breaking New Ground (BNG) initiative. A key component of the project is the provision of 15 000 BNG (subsidised) units, at higher densities than what has traditionally been delivered. Public transport is another key element, and two bus rapid-transit routes have been planned to link Umhlanga to Phoenix and to the Dube Tradeport in the north.

The development will include an 80 ha industrial platform; 1 500 000 m2 of commercial space comprising an office park, business/activity park and mixed-use town centre); a range of housing typologies comprising double-storey, semidetached, row, duplex, three- and four-storey walk-ups and multistorey apartments in a pedestrian-orientated village-type environment; 15 000 subsidised units comprising either BNG or RDP houses; residential units (about 50 000); 387 ha of public open space (landscaped parks and gardens, rehabilitated wetlands and the like).

The project will also include five interchanges and several external and internal roads, bridges and associated stormwater infrastructure and sewers electrical substations and a reservoir.

Value
The project is estimated at R20-billion.

Duration
The project has a 10- to 20-year timeframe.

Client
The project is a public–private partnership between Tongaat Hulett Developments and the eThekwini municipality.

Key Contracts and Suppliers
Bohlweki-SSI Environmental (environmental-impact assessment (EIA)).

Latest Developments
An independent cost benefit and macroeconomic impact analysis study has found that the initiative will change the face of KwaZulu-Natal.

The Cornubia development is expected to have a “large impact” on job creation in eThekwini during the construction and operational phases, and will unlock a significant contribution to the local gross domestic product (GDP).

The development is expected to contribute about 10%, or R3.3-billion, to eThekwini’s GDP and 5% to the provincial economy’s GDP of R22.9-billion.

“Nationally, the Cornubia development will contribute 2%, or R50.4-billion, to the South African GDP,” Tongaat Hulett Developments development director Karen Petersen has said.

The analysis, initiated by the eThekwini municipality and undertaken by KPMG shows that, in the long term, nearly 285 000 new employment opportunities could be created on the back of associated commercial activities.

This represents 12% of total employment in the province.

“This will be achieved through 39 000 direct jobs, 144 000 indirect jobs, and an additional 45 000 jobs in the rest of the province, as well as 54 000 jobs resulting from the economic impact of salaries and wages paid to employees at the development,” Petersen has explained.

This excludes about 250 000 employment opportunities during the construction phase of the Cornubia development.

“This phase of the project will pump as much as R700-million into lower-income households through job creation opportunities, which nearly doubles to R1.3-billion in income for these households during the operational phase of the development,” she has said.

The construction phase is expected to contribute an estimated R8.5-billion to the economy of eThekwini, representing 4% of the local economy’s GDP.

On Budget and on Time?
The project is still in the planning process.

Contact Details for Project Information
Tongaat Hulett Developments, tel +27 31 560 1900 or fax +27 31 571 0690 or email marketing@tongaat.com.

Edited by Creamer Media Reporter

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