Tongaat Hulett to release prime land in Umhlanga Ridge for R12bn
Agricultural and agriprocessing business Tongaat Hulett will release 42 ha of the remaining 62 ha of Ridgeside, its iconic development on Umhlanga Ridge, to the market as a single transaction in the first quarter of 2014.
“The transaction will allow a single investor or consortium to assemble a real estate asset base in the most sought after location in KwaZulu-Natal that will, on completion, exceed R12-billion,” said Tongaat Hulett property executive Mike Deighton.
Located on the sea-facing slopes of Umhlanga Ridge – “Durban’s first choice office location and one of the leading property investment opportunities available”, Tongaat highlighted – the site was fully zoned to accommodate 485 000 m2 mixed-use floor area, comprising 83 817 m2 of commercial space, such as offices, retail and other commercial uses, and 3 158 residential units, including hotel and other leisure uses.
The company noted that Durban was constrained relative to other major centres in prime real estate investment during recent years and the strategy was to accelerate the pace of development in collaboration with other role-players.
Since the start of land conversion at Umhlanga Ridge 17 years ago, the node had attracted over R50-billion in real estate investment, while currently 164 000 m2 of development, representing more than R3.6-billion investment value, was under construction.
Tongaat Hulett CEO Peter Staude added that the timing was right for this mega property transaction initiative to be undertaken to boost investment and “further increase the pace of development in the region, building on the investment platform already created".
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