Cornubia to get R20 billion private sector injection

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A multi-billion rand project, Cornubia, as a mixed use and mixed income development, spanning over 20 years, will alter the skyline of Umhlanga in the future A multi-billion rand project, Cornubia, as a mixed use and mixed income development, spanning over 20 years, will alter the skyline of Umhlanga in the future

Up to R20 billion in private sector investment is expected to be injected into the Cornubia mixed-used housing, commercial and industrial district planned adjacent to the N2 near Umhlanga over its development lifespan.

That’s the word from Michael Deighton, a director of Tongaat Hulett developments, the property group and “master-planners” leading several major projects north of Durban and who are working jointly with the eThekwini municipality on Cornubia.

He was speaking at a Durban Chamber of Commerce and Industrial business seminar last week on the developments together with Dube TradePort official. Dighton said Tongaat Hulett Developments was on the verge of securing two investments totalling between R2bn and R3bn into Cornubia. 

“We are in serious negotiations with major JSE-listed groups and hope to finalise these deals by September. Cornubia is one of the biggest developments being planned north of Durban and is essentially new mini city.” He said.

The Daily News has reported that a wrangle between the municipality and the KwaZulu-Natal Housing Department had settled the R25-billion project.

But Deighton said reports about delays were a result of a “misunderstanding” between the council and provincial government.

“I can tell you it is happening. The EIA for the entire Cornubia South is under way,” he said.

Construction on the pilot phase of the first 500 low-income houses by the municipality would start before the end of the year.

In the first phase in “Cornubia South”, Tongaat Hulett has sold about 370ha of developable land to city, for affordable housing. The group retained about 354ha of developable land in the area, part of which would include the Cornubia Industrial and Business Estate.

Cornubia represents more than 1 500ha of developable land on a site about 2 400ha. “Cornubia North” would have about 813ha of developable land heading towards the airport.

“Cornubia is being developed as Kwazulu-Natal and eThekwini’s first sustainable integrated human settlement, but over the next two decades most of the investments into Cornubia will be from the private sector.

The public sector including the municipality, as well as provincial government will invest about R5bn in the project, mainly on housing, infrastructure again. I beg to differ.

We are seeing this in the interest already being expressed in Cornubia Industrial and Business Estate will only go on to the marketing in February/March 2012, but already half is spoken for,” he said.


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