Agroprocessing group Tongaat Hulett has embarked on a new chapter in its land conversion activities, appointing UK-based real estate firm Savills, in association with property broker 5th Avenue and Pam Golding Properties, to launch nodes 1 and 5 of its Sibaya development, in KwaZulu-Natal, onto the international market.

Node 1 comprises 50 developable hectares and is located east of the M4 and Sibaya Casino, while Node 5 comprises 76 developable hectares, is situated immediately north of Node 1 and is bordered by the M4, the M37 to the north and the coastal town of Umdloti to the east.

Tongaat Hulett says in a statement that the appointment of Savills to market the two properties highlights the potential offered by the unique landholding.

The development possibilities for the two nodes include “major” new resorts, in conjunction with lifestyle residential accommodation, upmarket offices and developments suited to the leisure and hospitality industry, the group notes.

“Tongaat Hulett envisages Sibaya as a unique play-live-work lifestyle that is based on bringing together the best of both the urban and natural environments. These opportunities lend themselves to organisations possessing global expertise and bold vision to maximise their enormous potential,” says Tongaat Hulett property development executive Mike Deighton.

Savills international development consultancy head Daniel von Barloewen adds that the construction of the new international airport and the Dube TradePort are statements of intent from government and the local authority to attract international investment to the region.

“The Sibaya site provides an opportunity to deliver a new destination for Durban to attract international investors, hotel operators and businesses. Savills [is] delighted and privileged to be partnering with Tongaat Hulett in helping shape the future of the region and attract global investors,” he notes.

Meanwhile, the group said last week that its 12 ha, 85 000 m2 Cornubia Business Hub, in KwaZulu-Natal, which was launched in late August, was sold out.

The transaction, which was concluded in September, saw the sale of five subdivisions to two buyers, with 68 000 m2 going to a local black-owned consortium.

Deighton says this is the company’s first major empowerment deal in a key area in Umhlanga.

“We are confident that it is the first of many such empowerment deals,” he says, emphasising that there are several opportunities in the future roll-out of Cornubia to further reinforce the organisation’s intention to make space for black developers in this key growth and investment corridor north of eThekwini.

“We believe this represents an up to R3-billion investment opportunity for these entities that could construct suitable facilities for a range of end-users,” he notes.

Speaking on behalf of the black economic-empowerment consortium, principal shareholder Paulos Ngcobo says the group looks forward to partnering with Tongaat Hulett to maximise the potential of this prime location.

“As a catalyst for economic development, Cornubia has the potential to create employment and improve the lives of thousands of people,” he says.

The bulk earthworks contract for the site has, meanwhile, started and is expected to be completed in mid-2015.

Construction of internal services, such as roads, telecommunications, water, sewerage and electricity, will follow thereafter.

Construction of the top structures could start as early as next year, with trading likely to begin in 2017, Deighton says.