Owing to the vision of establishing the Cornubia multi-use development as an important node between King Shaka International Airport and the City of Durban, construction company M&F Giuricich Developments has announced the development of a 100 000 m2 logistics park at the N2 Business Estate, in
“A logistics park of this size and nature is a perfect fit for the vision we had of establishing the Cornubia N2 Business Estate as a prime commercial location,” says property management company Tongaat Hulett Developments development director Karen Petersen.
Construction is scheduled for completion by the end of 2018, says the company.
She explains that Tongaat is starting the civils contract for the estate, which includes the provision of engineering services; the company is also marketing the development as a catalytic project further unlocking Cornubia.
Located on the northern edge of the Cornubia development, with easy access to the N2 highway, it could generate R45-million a year in income rates for the City of Durban.
“We believe that the opportunity exists for this facility to meet the needs of logistics companies or major brands with significant warehousing needs,” says M&F Giuricich Developments cofounder Florian Giuricich.
He points out that there is very little infrastructure of this nature currently along the N2 that exploits proximity to the airport and Dube TradePort, and provides access to Durban: “The location of the N2 Business Estate is ideal for companies that prefer to be closer to Durban, as opposed to further north.”
The logistics and retail park is being developed by M&F Giuricich Developments and Fortress Property Fund – one of the larger South African property-owning funds listed on the JSE – in a joint venture (JV).O
n completion, Giuricich says, total investment in the estate will be about R1-billion.
The highway infrastructure has been undergoing major improvements, as surrounding road and infrastructure construction projects are all running on schedule, he adds.
“The bridge link between the N2 Business Estate and Umhlanga is on track and will be completed earlier than scheduled in 2017,” says Giuricich.
Petersen says the estate will also provide much-needed employment opportunities for those living in and around the greater Umhlanga area, most notably in the nearby Blackburn Village informal settlement.
“Estimates conservatively indicate that the estate would make provision for at least 2 500 permanent sustainable jobs,” she points out.
Other projects, adjacent to the estate on the southern edge of Cornubia, are being completed by the joint venture as well. The Cornubia Town Centre, of which 80 000 m2 of commercial bulk has been sold to investors, will be a high-intensity area for office, retail and residential use.
About 3 500 residential units are being planned further to the north, near Blackburn Village, in conjunction with the local municipality. Umhlanga Hills, primarily a residential precinct, will be also be launched later this year, offering more than 2 500 affordable and midmarket housing opportunities, as well as a retirement village, Petersen points out.
Giuricich concludes that the JV will work towards completing the project with as little delay as possible: “We look forward to the success of this project”.