Name and Location
Modderfontein New City development project, Gauteng, South Africa.

Client
Hong Kong-listed Shanghai Zendai.

Project Description
The project involves the development of an ecofriendly and low-carbon 22 km² ‘city’, in Modderfontein, on property bought from South African chemicals group AECI for R1-billion in November 2013.

The master plan of the Modderfontein New City entails the development of nine interconnected, multifunctional zones; a business, trade and logistics park; a light-industry node for export and light manufacturing; a commercial ‘city centre’; an international conference and exhibition node; a trade and logistics hub; an entertainment centre; an education centre; a healthcare centre; a sports centre and stadium; hotels; and a residential development for the international community.

Commercial activity is expected to generate about 200 000 permanent jobs, while the project’s West Lake international community housing development and ‘downtown Modderfontein’ residential development will house an estimated 100 000 people, or 30 000 families.

The development’s central business district, or town centre, will cover 2.4 km² and will include offices, company headquarters and finance and trade operations.

Modderfontein New City’s 2.5 km² international conference and exhibition centre, the Long Lake Gateway, will also boast a cultural centre, a sports centre and ‘ecological offices’, while the 1 km2 entertainment zone will be an Africa-themed multifunctional entertainment area.

The Long Lake Gateway area’s 19.9 ha sport centre, will also include a stadium; volleyball, basketball and tennis courts, and a football field.

A ‘silver industry zone’ will be situated in the Long Lake area, adjacent to the international exhibition zone, and will include a hospital, other healthcare facilities and designated shops and housing for the elderly.

The North Modderfontein node will result in the development of a 3.7 km² residential development for the international community, encompassing housing, shops, offices, hotels and ancillary facilities.

The East Founder’s Hill education and training centre, located in the south-east of the city, will be a “comprehensive education community” comprising vocational and technical educational facilities, including a university.

The 2.6 km2 Highland business, trade and logistics park will be developed as the industrial cluster of Modderfontein New City, providing a base for logistics and storage companies, as well as for export and manufacturing entities.

Zendai aims to develop this zone into a free-trade area under South Africa’s special economic zone programme and a business, trade and logistics hub under the ambit of the Overseas Economic Trade and Cooperative Zone of China.

Lastly, the East Founder’s Hill light industry park will be an estimated 73 ha cluster area for the aviation and light manufacturing industries, and will focus on the manufacturing of decor, electronics, textiles and clothing, light industry and food.

Value
R84-billion. The development will be funded by Zendai, the Export-Import Bank of China and the China Development Bank.

Duration
Construction of the development is expected to begin later this year and is expected to be completed in 2024.

Latest Developments
Shanghai Zendai held a series of public consultations in July to brief the public on its plans for the proposed Modderfontein development, outlining the development’s guiding principles through the master planand its likely environmental, social and economic impacts.

In a statement, the group has said that attendees, which included representatives from the Gauteng Premier’s office, City of Johannesburg officials, local businesses owners and community members, were taken through the development’s master plan and guiding principles, as well as details of the framework, project scope and a preliminary roll-out schedule.

Attendees were also given the opportunity to meet with representatives of the project’s appointed technical consultancy firms Atkins Global and Arup.

Atkins’s scope includes the strategic and operational framework for the development, including land use, sustainability practices, spatial planning and design, while Arup’s scope covers services and infrastructure master planning, as well as traffic impact assessments.

ZDSA has said it will also allocate and identify areas for protection – such as nature reserves and historic buildings – as well as guide development precincts, providing an indication of the proposed density of development and the types of land uses.

As part of the master plan, ZDSA and Arup have assessed the impact of development on demand for transport and have started to establish mitigation measures to lessen the localised impact and enhance transport links with surrounding road networks.

These include the completion of the 1.7 km Marlboro drive extension; the completion of 2.4 km of roads linking to the London road offramp; the start of a section of the proposed K113, which will ultimately link Edenvale to Marlboro drive; and the current 2 km extension to Centenary road to link through to Longmeadow Business Estate and, ultimately, the N3.

Several crossings under and over the Gautrain line have also been designed for future links through the site.

Detailed environmental-impact assessments will be conducted for specific developments as planning applications are submitted, while current environmental planning is aiming to proactively identify environmental assets and significant negative impacts on the environment.

“This does not mean that potential environmental impacts will not be assessed in the future, as detailed studies will be undertaken at the next stage of the planning process,” ZDSA contends.

As a result, ZDSA plans to forge “working partnerships” with the City of Johannesburg’s Department of Environmental Affairs, the Gauteng Department of Agriculture and Rural Development and various key departments within these local and provincial authorities.

Key issues of concern raised by community members during the July consultations included traffic congestion, environmental impact and the status of the Modderfontein Reserve.

It has been explained that the reserve forms a focal point in the development and is “integral” to the future of the development.

Several local business owners also attended the public information sessions to identify possible opportunities afforded by the project.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
On behalf of Shanghai Zendai, Chantelle Mathomes, tel +27 11 579 1000 or email chantelleM@heartland.co.za.