Seven Great Reasons to Invest in Durban
Category Area Review
The city of Durban is on fire! Wherever you look, theres the uplifting sight and sign of plans for new infrastructure. The City has a vision for Durban to become the most liveable city by 2030. Bodes well for investors...
Seven or more years ago, it felt like Durban was struggling out of the starting blocks. Massive projects such as The Point development and Film City were tied up in legal knots, and whether they were valid contests or not, it felt as if the City was going only one place...north.
While the Durban Point development is considered by Durbanites as a separate entity, for eThekwini Municipality, its just one of a number of projects, all integral to the inner city matrix. The words inner city conjure up Durban Central, but the actual boundaries demarcate a far broader block. The Durban Point is envisaged as a catalyst for that bigger picture. Most projects are directed at revitalising the inner city - instead of dealing with each project piecemeal, the City looks to a commonality of vision.
Today, the inner city is showing a new face. Many of the plans were incubating before the news that Durban would host the Commonwealth Games in 2022, but that news is certainly acting as an accelerator. It stands to reason that developers often partnerships between the city and private enterprise will endeavour to either complete projects, or develop in a strategic fashion so as to complete significant sections, particularly if theres a tourism or investment angle.
Heres a taste of (only) seven reasons why investors are looking at Durban. Others are on the drawing board...from Virginia Airport to Wilsons Wharf...but if things go according to plan, Durbans set to fly.
- COMMONWEALTH GAMES 2022, with an estimated 200 000 tourists wholl descend on Durbans shores. In total, international visitors are expected to contribute up to R12 billion in direct expenditure, while investment in infrastructure is expected to contribute to the citys lasting benefits. The Games will be designed, planned and executed to facilitate certain national priorities like housing - its envisaged that the athletes village will contribute around 1800 housing units within the greater Durban area, and post the event, could accommodate around 7 000 individuals. In total, the Games are expected to deliver up to R20 billion in output to the economy, translating into an estimated R11 billion GDP growth.
- THE POINT WATERFRONT DEVELOPMENT, potentially a R40 billion mixed use project retail mall, hotel, residential and commercial offices. The primarily developer is The Durban Point Development Company, a Pty Ltd company, with eThekwini Municipality through Durban Infrastructure Development Trust (DIDT) and ROC Point (Pty) Ltd (UEM Sunrise of Malaysia 80,4 percent and Vulindlela 19,6 percent) as joint shareholders. The development has been revised for example, removal of the small craft harbour from the initial plans so an entirely new Development Framework Plan has been drafted. Unlike the modus operandi of eight years ago, ROC Point will develop the entire precinct, and in that way, avoid any stalling. There are a few contentious issues height of buildings for starters but on the flipside, the long-time gripe of poor, even unsafe access to the Point, will being addressed, and that will be a major boost to the precinct.
- FILM CITY, Its been 10 long years, as Anant Singhs Videovision subsidiary, Rinaldo Investments, finally won the day. Government has given the South African film industry the status of a strategic industry, so its role in the countrys economy is significant. The Department of Trade and Industry has a programme in place which incentivises film makers producers - who spend a sizeable portion of their budget on South African soil. Movie maker Anant Singh says: Durbans been very behind in getting any meaningful slice of the R10 billion a year movie pie - barely three percent if were lucky. I believe well shift some of that pie here. This R7 billion-plus international-class project promises to be a far broader, more interactive, community-centric development; a vast multipurpose theme park, not unlike the legendary Universal Studios City, but with a strong local community interface and Durban/African flavour. Themed movies, this vast precinct will be the playground of tourists and locals alike.
- TSOGO SUN EXTENSION OF HOTEL AND CASINO, Marcel von Aulock, CEO of Tsogo Sun describes the casino as one of the busiest in the country, and this is clearly a major driver for the impressive expansion plans for Suncoast. Its a combination of expanding the casino - for which we have obtained approval to increase by an additional 1,000 gaming positions (around 30%) - and the development of a 50 000 square metre retail mall to meet local demand for destination retail. Were also expanding the entertainment facilities through the inclusion of the roof-top sky park and a 2,000 seat conference and event multi-purpose venue. If all goes according to plan, they expect to break ground in the middle of 2016 and be complete by 2019.
- INNER CITY REJUVENATION, Theres so much happening, both privately and publicly funded. From massive plans for a new City library to the reinvention of a number of Durbans tired old commercial buildings into mixed-use precincts. Property developer Jonathan Liebmanns Propertuity group identified downtown Morrison Street as their urban regeneration starting point, and partnering with eThekwini municipality and a committed team of Durban architects, artists, entrepreneurial spirits and urbanists - timed the first phase of the development to coincide with last years international Union of Architects conference. It turned the CBD from a degenerating near no-go motor-town zone into a dynamic multicultural drawcard, and 8 Morrison Street Rivertown was the place to be and be seen. Propertuity has an established name for a gritty style of urban redevelopment and industrial conversion, but Liebmanns intention was not to recreate Maboneng in Durban, but rather to leverage off the elements which comprise the essence of this particular African city, and create a uniquely revitalised, uplifted neighbourhood and community. Phase one involved the conversion of a 160-year old, 800 square metre warehouse into a vibrant exhibition space hosting art, design and community related events. It was followed by Phase two, the commercial component, a development of 52 retail and office pods. Specifically aimed at start-ups and entrepreneurs - as well as small to medium sized enterprises the intention is to stimulate a new and dynamic creative economy for Durban. The waiting list bears out the faith which Liebmann had in the project.
- GO!DURBAN RAPID TRANSPORT NETWORK, GO!Durban is the brand name for Durbans new integrated rapid public transport network (IRPTN). Its not just about a bus system, but rather a restructure and integration of various modes of transport, all working hand in hand - different modes of transport will be used in routes where they are best suited. The entire network will be linked by infrastructure such as right of ways, stations and stops, so therell be a seamless transfer from one mode of transport to the next, one ticketing system across the different modes. GO!Durban is the biggest infrastructural project ever undertaken by the city - R22 billion over 13 years. The system will combine existing and new rail systems, a new Bus Rapid Transit System (BRT) using a segregated right-of-way infrastructure, minibuses, and non-motorised transport systems. GO!Durbans plan will not only involve upgrading the current bus fleets, facilities, stops and stations, but embark on a comprehensive skills development programme targeting all existing industry employees affected by the Go!Durban project. This latter programme will result in professionalization of public transport drivers with improved conditions of service. Integrated into the IRPTN, is the extensive non-motorised transport network, which includes bicycle lanes, walkways and bridges for pedestrians for commuter and recreational purposes, and the City is committed to providing lanes for commuter cyclists and walkers beyond the existing tourist precinct. And its all happening right now, with certain legs of the route already completed.
- STATION ROAD PRECINCT, Andrew Rall has developed a rather unique urban precinct in Station Road, off Umgeni Road, near its intersection with Goble Road - industrial buildings repurposed into affordable creative spaces, with the vision to attract a wide spectrum of creative businesses. He developed The Foundry (43 Station Drive), the first building to be operational there. Converted from a derelict former clothing factory, it now houses a variety of spaces including a floor of serviced creative offices, small creative production spaces, and Durbans leading craft brewery and restaurant. Along Station Road, there are local jewellers, leatherworks and homegrown brands making their mark there. Recently, furniture and lifestyle store Con Amore opened its flagship Durban outlet in a vast industrial space in the precinct. On Sundays, the Morning Market draws locals to shop for everything fresh, farmy and delicious. Its an exciting concept, and increasingly, Durbanites are climbing on board.
Author: Anne Schauffer
