Property development, management and investment company Akani Properties has won a bid to develop a R350-million hotel and conference facility, in Middelburg, in Mpumalanga.
The facility will include a 150-room hotel and a 1 000-seater capacity conference centre. The hotel will boast standard rooms and suites, gym facilities and a fully licensed restaurant and bar, besides others.
The total capital expenditure will be funded through a combination of debt (20%) and equity (80%).
Once the development is complete, it is estimated that at least 200 full-time operational jobs will be created, with the majority of employment opportunities going to residents of the municipality.
“Middelburg, which has been growing steadily over the past few years – due to the mining industry and related industries – matches our investment strategy and criteria. We believe this investment will offer our investors sustainable returns in the long term, while also making lasting socioeconomic contributions.”
With the Covid-19 heath crisis negatively impacting economic activity in the short term, we see infrastructure investments – either in social or economic infrastructure assets – as one of the mitigating interventions and a sustainable way of growing peri urban economies,” says Akani MD Zamani Letjane.
Akani has secured commitment from an international hotel operator to manage and operate the precinct.
The company says the operator has a significant international and local presence to market and operate the precinct on behalf of the developer.