Old Mutual to build ‘the largest mall in Africa’

Posted On Wednesday, 13 August 2008 02:00 Published by
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Within three years, R15bn will be committed by the Triangle Real Estate Development Funds to develop Old Mutual’s land bank projects.

Within three years, R15bn will be committed by the Triangle Real Estate Development Funds to develop Old Mutual’s land bank projects, which include five large, mixed use developments in Cape Town and Gauteng.

Colin Young, head of institutional property investments at Old Mutual’s Investment Group Property Investments’s Triangle Real Estate Development Funds, says this is “indicative of Old Mutual’s confidence in SA and the economy”.

Young says Old Mutual is expecting a turnaround in the “current trends on a five-year outlook”.

“Because property is a marathon, not a sprint, it’s important that we have a five- to 10-year outlook when contemplating these large developments,” he says.

Three of the large mixed-use developments, which are based in Gauteng, are linked to three Gautrain stations.

The other two are based in the Cape Town central business district.

Young says the most significant of all of these developments is the Zonki’Zizwe mixed use precinct in Midrand, where the largest shopping centre in Africa is being built.

Triangle plans to develop a 200000m² retail town centre.

“It will be unique to SA.

“We are building a development that will create the facade of high street shopping with an array of international and local retailers,” he says.

The “retail town centre” is phase one of what is a multi phased plan and is a R7,5bn investment.

The planned Gautrain station in Midrand is about 400m from the retail town centre.

Phase two of Zonki’Zizwe will be an office park and tourism centre around the Gautrain station.

“We will also be densifying the area around the Gautrain, on the south end of the town centre, with residential property,” says Young.

Phase two is expected to carry a value of R4,5bn.

He says the R2bn third phase of the precinct will include a retail park on the other side of Grand Central Airport and phase four, which is valued at R2bn, will include high density residential property development.

The entire Zonki’Zizwe site is 225ha with the airport running through the middle of it.

“We have finalised an agreement with the government and Bombela.

“The rail line will now be moved to the edge of the property along the K101 highway and that has allowed us the space to create the town centre as originally planned.”

Site assembly and infrastructure build on Zonki’Zizwe will begin in earnest in January next year.

Phase one is expected to be completed by the end of 2011.

Zonki’Zizwe, on its own, will cost about R16bn in total over its 10-year roll out.

Source: Business Day

Publisher: I-Net Bridge
Source: I-Net Bridge

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