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 describes 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 in the ‘city’ 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 will also host a 19.9 ha sport centre, boasting 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 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 is well into the first phase of the Zendai Modderfontein development, telling Engineering News Online on January 8 that several electrical substations had been erected on the 22 km2 property, while a first-phase road extension project was currently under way.

Company spokesperson Ann Sun said construction work started in December 2014 on the first phase of the road network, which resulted in the extension of the existing Centenary road from the R25, or Modderfontein road, to the northern K113 provincial road.

This phase, budgeted at R50-million, is expected to take about nine months to complete.

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

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

The group is currently in the design phase of a residential development, which it expects to launch to the market in the first half of the year.

Shanghai Zendai’s efforts are now largely focused on updating its “rough conceptual plan” to a more detailed master plan and it has 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 government,” says Sun.

Further, in accordance with its rolling investment model to offload some of the property to third parties for development, the group has sold a portion of the property to a private residential developer and another to an unnamed educational institution. These  developments will form part of the overall R84-billion investment.

Shanghai Zendai is expected to release further information of the project’s progress in the coming days.

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.