Hong Kong-listed property development group Shanghai Zendai is well into the first phase of its R84-billion Zendai Modderfontein development, in north-eastern Johannesburg, telling Engineering News Online on Thursday that several electrical substations had already been erected on the sprawling 16 km² property, while a first-phase road extension project was currently under way.

A company spokesperson said construction work started in December on the first phase of the road network, which would see the extension of the existing Centenary road from the R25, or Modderfontein road, to the northern K113 provincial road.

This phase was expected to take about nine months to complete.

Thereafter, work would start on extending the K113 road to connect with the newly lengthened Centenary road, which would provide an important east-to-west road linkage across the development.

While unable to immediately provide the name of the road contractor, Shanghai Zendai confirmed that it was a South African company and that it had been awarded the contract following an open tender process that concluded in November last year.

The company, meanwhile, spent R160-million to establish several electrical substations on the property last year, with more planned for erection later this year.

It added that the group was currently in the design phase of a residential development, which it expected to launch to the market later this year.

Shanghai Zendai’s efforts were now largely focused on updating its “rough conceptual plan” to a more detailed master plan and it had already commissioned several global and local planning firms to work collaboratively in this regard.

“We have also commissioned a company to do the economic study to accompany the planning process so that the new master plan will reflect the needs of the market.

“We will also consult with the City of Johannesburg to ensure that the master plan is acceptable both to the public and to government,” the spokesperson outlined.

Shanghai Zendai first introduced its ambitious project at a launch event in April last year, stating at the time that the development, dubbed Zendai Modderfontein, would house 100 000 residents and businesses that would employ a further 200 000 people on completion in 2024.

The new “ecofriendly and low-carbon” urban district in Johannesburg would encompass the functions of a conventional city, including finance, trade, logistics, commerce, exhibition, manufacturing, education, healthcare and housing.

The development, covering a floor area of 11-million square metres, would be located some 20 km from the original city centre, in Johannesburg, 7 km away from Sandton and 8 km from OR Tambo International Airport, in Kempton Park, and would boast a Gautrain station linking the project to other financial hubs and transport networks.

Shanghai Zendai founder and chairperson Zikhang Dai said at the launch that the group planned to spend R3-billion on the development of Zendai Modderfontein over the next three years, with a view to creating a “great city”.

The company said it would release more information on project progress in the coming week.