Agroprocessing group Tongaat Hulett has embarked on a new chapter in its land conversion activities, appointing UK-based real estate firm Savills, in association with property broker 5th Avenue and Pam Golding Properties, to launch nodes one and five of its Sibaya development, in KwaZulu-Natal, to the international market.

Node one comprised 50 developable hectares and was located east of the M4 and Sibaya Casino, while node five comprised 76 developable hectares, was situated immediately north of node one and was bordered by the M4, the M37 to the north and the coastal town of Umdloti to the east.

Tongaat Hulett said in a statement on Monday that the appointment of Savills to market the two properties highlighted the potential offered by the unique land-holding.

The development possibilities for the two nodes included “major” new resorts, in conjunction with lifestyle residential accommodation, upmarket offices and developments suited to the leisure and hospitality industry, the group noted.

“Tongaat Hulett envisages Sibaya as a unique play-live-work lifestyle that is based on bringing together the best of both urban and natural environments. These opportunities lend themselves to organisations possessing global expertise and bold vision to maximise their enormous potential,” commented Tongaat Hulett property development executive Mike Deighton.

Savills international development consultancy head Daniel von Barloewen added that the construction of the new international airport and the Dube TradePort were statements of intent from government and the local authority to attract international investment to the region.

“The Sibaya site provides an opportunity to deliver a new destination for Durban to attract international investors, hotel operators and businesses. Savills [is] delighted and privileged to be partnering with Tongaat Hulett in helping shape the future of the region and attract global investors,” he noted.

Meanwhile, the group added on Monday that its 12 ha, 85 000 m² Cornubia Business Hub, in KwaZulu-Natal, which was launched in late August, had sold out.

The transaction, which was concluded in September, saw the sale of five subdivisions to two buyers, with 68 000 m2 going to a local black-owned consortium.

Deighton said this was the company’s first major empowerment deal in a key area in Umhlanga.

“We are confident that it is the first of many such empowerment deals,” he said, emphasising that there were several opportunities in the future roll-out of Cornubia to further reinforce the organisation’s intention to make space for black developers in this key growth and investment corridor north of eThekwini.

“We believe this represents an up to R3-billion investment opportunity for these entities that could construct suitable facilities for a range of end-users,” he noted.

Speaking on behalf of the black economic-empowerment consortium, principal shareholder Paulos Ngcobo said the group looked forward to partnering with Tongaat Hulett to maximise the potential of this prime location.

“As a catalyst for economic development, Cornubia has the potential to create employment and improve the lives of thousands of people,” he commented. 

The bulk earthworks contract for the site had, meanwhile, started and were expected to be completed in mid-2015.

Construction of internal services, such as roads, telecommunications, water, sewerage and electricity would follow thereafter.

Construction of the top structures could start as early as next year, with trading likely to begin in 2017, Deighton outlined.

“The value of the investment will be fully unlocked by 2017/18 after the opening of the Cornubia Shopping Centre, which is already under construction by Investec, and the completion of major infrastructure upgrades that include the Flanders Drive interchange on the M41,” he said.

The site formed part of the greater Cornubia development, a multibillion-rand collaboration between the eThekwini municipality and Tongaat Hulett.

The first of its kind in KwaZulu-Natal, Cornubia was a fully integrated human settlement that would, once complete, house 24 000 homes and accommodate nearly 100 000 people.