R120m BEE property development for Nelspruit

Posted On Monday, 25 October 2004 02:00 Published by eProp Commercial Property News
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Kagiso Property Holdings have joined forces with the HL Hall and Sons farming dynasty of Nelspruit to launch a new R120-million commercial and retail development

Property-Housing-ResidentialBlack economic empowerment (BEE) property developers Kagiso Property Holdings have joined forces with the HL Hall and Sons farming dynasty of Nelspruit to launch a new R120-million commercial and retail development in the Mpumalanga capital - the fastest growing major town in South Africa.

Construction of the Riverside Park Phase II initiative along the Nelspruit/White River main road will start in the first quarter of 2005. The joint venture initiative is in the same Riverside Park development node as the popular Riverside Mall - currently undergoing a 15 000 m2 expansion - the Mpumalanga legislature, and the Emnotweni Casino complex.

The Nelspruit investment is the first major development project for Kagiso Property Holdings outside of its traditional powerbase in Gauteng, and to a lesser extent, the Western Cape.

Joining Kagiso and Halls in the Riverside Park development is a Nelspruit empowerment consortium Mokgatlo. Although the joint venture initiative will initially focus on a 13 ha extension to the Riverside Park precinct, a comprehensive development plan for the Phase II area encompasses 110 ha.

It is envisaged that this master plan will take ten years to 15 years to complete, and raise the total investment in the Riverside Park development node to R2,5-billion.

"Riverside Park is by far the largest commercial, retail and residential development in the Mbombela region. Our joint venture with HL Hall and Sons and Mokgatlo will add world-class commercial facilities for a wide range of businesses, including the automotive retail industry, home décor and lifestyle industry, and high-value commercial warehousing," said Eric Molobi, non-executive chairperson of Kagiso Property Holdings.

"Riverside Park presents Kagiso with an exceptional opportunity to expand our property interests beyond the current core focus of Johannesburg and Cape Town.

Since 1999 the Mbombela region has been outperforming both South African and Mpumalanga economic growth figures. The current annual growth rate of 4% for the region is expected to be maintained for the next two to three years, and is higher than the current gross domestic product growth rate of 1,5% for the rest of the country, and projections of 2% to 3% for South Africa over the next two years.

Last modified on Thursday, 22 May 2014 16:33

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