North Coast remains investment hot-spot despite pandemic-induced economic slump

With significant investment still in the pipeline, North Coast developers are talking down the pandemic-induced economic slump that has affected the rest of the country. 

This was the welcome news at iLembe Chamber of Commerce first Friday business club meeting held last Friday with keynote speakers discussing the economic development and business future of the region. 

The North Coast’s exponential growth is expected to continue with several new developments well underway despite the extraordinary global crisis – and even hints that an affordable high school may be on the horizon.

Developer Mahen Moodley of Chroma Capital said the plan to increase the Salt Rock City shopping centre by 4 000 square metres was forging ahead.

The group bought the Mount Richmore estate together with the Salt Rock City shopping centre in 2018.

He said the next major project on the cards was a mental health and dementia centre in Salt Rock with support from key Netcare psychiatrists.

Plans for the accompanying land adjacent to Simbithi Eco Estate includes a retirement village, a single residential zone and sectional title developments.

It is not yet clear if Simbithi Homeowners Association (HOA) will give the green light to incorporate parts of the development within the estate.

Last year the proposal failed to reach the 75% approval needed for its inclusion but it is back on the table with HOA putting it to a vote early next year. 

Moodley, who is also involved with the new R450 million Odyssey Ballito development (previously Ballito Bay Mall), said the building, which encompasses a state-of-the art day hospital as well as a retail and residential element, was on track to open mid-2021. 

Another node earmarked for residential development is set for the land next to Zimbali Wedge. 

LIVE: ILembe Chamber discusses economic future of iLembe District

Collins Residential projects director Geoff Perkins outlined the group’s plans, which includes their multibillion rand residential developments – Zululami Luxury Coastal Estate, set over 140 hectares at Sheffield Beach and the 400 hectare Seaton development that borders Zululami. 

Perkins said sales were booming, with Zululami set to be sold out by the end of 2021.

Initial demand in the first phase of Seaton saw stands sold out within 6 hours.

“All indications are showing the North Coast is attracting significant investors.

“Our master plan, just short of 4 000 hectares, is going to be a game changer for the region and its exciting to see the North Coast flourishing like it is.”

The group controls about 3700 hectares of land on the North Coast which has been earmarked for massive residential, resort and commercial property developments.

While Du Toit remained tight-lipped on the plans of Europe’s largest resort operator, Club Med, the development of a large-scale beach resort at Tinley Manor is still on the cards. 

The French-based luxury resort group has been eyeing the North Coast for a number of years with a number of potential sites including the iSimangaliso Wetland Park World Heritage site and Tinley Manor having been visited by Club Med bosses. 

With its year-round warm weather and balmy seas the North Coast combines a beach destination with access to the “Big Five” safari reserves in the north of the province.

The region is also aligned with the Club Med image which has over the past few decades transformed their resorts into upmarket family destinations.

In response to a question from the audience regarding the desperate shortage for affordable high schools, Perkins told the meeting they were in talks with stakeholders to establish a high school with a similar ethos to Umhlali Preparatory and Maritzburg College – both public schools offering affordable yet exceptional educational environments. 

Despite the current crisis from the pandemic forcing many organisations to put a halt to new initiatives to allow for recovery, vehicle cabling manufacturer Hesto Harnesses managing director John Chandler told the meeting they were on track to expand in the new year after recently securing key contracts in the automotive industry. 

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One of the biggest employers in the region with a work force of 2 600, Hesto manufactures and assembles the wiring for thousands of locally produced vehicles at their 16 000 square metre factory in KwaDukuza. 

The new contracts will result in Hesto employing about 3 000 more people with a capital investment of more than R500 million.

Plans to ramp up production are scheduled for the end of next year with Hesto having secured additional land from Transnet for the construction of a new 40 000 square metre manufacturing facility.

With unemployment in KZN sitting at 47.5%, the investment will be a much needed boost for the region.

*Source: AfriAsia Bank’s South Africa Wealth Report for 2019