TWO property giants have clinched a R20-million-plus industrial land deal, thought to be the largest in the Durban metropolitan area in more than a quarter of a century.
Moreland Estates, property development arm of the Tongaat-Hulett Group, has sold the Old Mutual 19ha at Mount Edgecombe and a contract for earthworks and site preparation will be awarded soon.
The deal adds impetus to industrial growth and job creation in the Northern corridor and gives OM its first big property capable of development North of the Umgeni River.
It also paves the way for further massive capital investment of about R90 million in Mount Edgecombe, which is currently enjoying a property development boom in its residential, commercial and industrial zones.
Occupying a prominent position at the intersection of the Old North Coast Road (Main Road 2) and the Mount Edgecombe highway (MR94), the OM land is a significant slice of the 100ha earmarked for industrial development in terms of the Mount Edgecombe structure plan.
Moreland’s industrial and commercial development director outlined the huge tasks that lie ahead: “The 10-month services contract will produce a net 16,5ha of level land. This involves the redistribution of 390 000m3 of material equivalent to a rugby field 15 storeys high.”
Old Mutual Properties national investment manager Tommy Osborne said the site was ideal for an attractive and secure landscaped park.
“It also provides a springboard for significant expansion of our R1 billion property portfolio in KwaZulu Natal and is a further expression of our confidence in the region,” he added.
The deal is the largest private sector transaction in the Durban area since Toyota acquired 34,6ha in Prospecton (1969). In 1971, SA Breweries also bought in Prospecton – a 17,1ha site.
The negotiations were concluded by Umhlanga based property broker Macro Ardain.
THIS ARTICLE WAS FIRST PUBLISHED ON 17 NOVEMBER 1995 | THE MERCURY