In one of the biggest infrastructural investments in Durban since the Soccer World Cup, privately held local property group Fundamentum has acquired the development rights for Westown from landowner Tongaat Hulett in what is considered an innovative land deal.
Applying a model like that used in Waterfall in Midrand Johannesburg, instead of selling off the land to a developer, Tongaat Hulett has applied a leasehold structure. Using a new property company Tongaat will retain ownership of the land with Fundamentum owning the development rights with a rolling 99-year leasehold. Commercial end users will pay the property company a percentage of their rental.
Along with the Westown development rights, Fundamentum will be responsible for the planning and urban design, infrastructure delivery, management, and operational aspects as well as the development of its own real estate portfolio.
The development will be led by Fundamentum through the construction of its own buildings as well as in partnerships, and it is in negotiation with other developers for 2 800 residential units around the shopping experience. There is also development approval for 170 000m2 of warehouses and commercial, business and office space as we a 100-bed hospital. Fundamentum also has rights on the balance of the surrounding 2000ha.
Fundamentum CEO Carlos Correia and directors Sean and Don Bergsma (both Durban entrepreneurs) have positioned Westown as a locally-driven initiative defined by the people and characteristics of the West.