Mixed-use development in South Africa started gathering momentum in the late 1990s. It aimed to re-connect people with their workplaces, homes, shops and leisure activities. And now Entrepreneur and property mogul, Vivian Reddy, is taking this concept of community one step further with a unique investment opportunity for all in the Oceans Umhlanga development.
On 10 November 2016 the CIPC approved this first-time ever model for the KZN community. The opportunity permits the public to purchase shares in the new Radisson Blu operated hotel. Investors from all walks of life can, from 30 November to 22 December, reserve a place in the investment queue by completing and submitting an ‘Expression of Interest’ form. From 23 January 2017, the shares will be allocated on a “first come, first served” basis, and reserving a place now could avoid disappointment.
Edison Property Group (EPG), a subsidiary of South Africa’s largest black-owned power company, the Edison Corporation, is a big player in KwaZulu-Natal, and the force behind multiple casinos and shopping malls across the country. But their magnum opus is Oceans Umhlanga – a mega mixed-use development project in collaboration with Ducatus Property Group.
“With the current rate of development in KwaZulu-Natal, I believe the province will be the fastest-growing economy in South Africa within the next three years,” says EPG chairman and founder, Vivian Reddy.
Having carried out trend analysis abroad, EPG decided to use the 231 000 m2 of prime land they had acquired in the heart of uMhlanga for a mixed-use development offering an affluent blend of retail, hotel and residential components. “Oceans Umhlanga is an exclusive offering which will cater to the area’s dollar millionaires. It’s an accumulation of all our years of experience in the property development game, within the residential, retail, commercial and casino environments.”
The development will cost R 3.8 billion to develop and is expected to open its doors in 2018. Edison Property Group foresees approximately 100 000 new homes being built in the vicinity over the next three years, and Oceans Umhlanga will be perfectly positioned to service the area.
“The idea for this type of mixed-use development came from our market research, which revealed that residential developments linked to a hotel or mall were having great success overseas.”
Having weighed their options for potential candidates, EPG finally selected Radisson as the hotel operator for the prestigious Oceans Umhlanga development.
“Radisson has the biggest footprint of any hotel group in Africa. A large proportion of seasonal visitors to uMhlanga come from the continent, where the Radisson brand is recognised and highly regarded.”
Of the retail target market at Oceans Umhlanga, Vivian says, “Our experience is that the wealthy demographic aren’t looking for massive malls with every possible offering. Instead they want smaller, lavish spaces where they can shop for the top international brands.
“When we approached these luxury brands to offer retail space in our mall, many told us they had been actively looking to move into Durban, but hadn’t found a mall exclusive enough − until Oceans Umhlanga, of course.”
Reddy enthusiastically adds: “Amongst the most defining attributes of our Oceans project is its quintessential location. uMhlanga is arguably the Beverly Hills of South Africa, certainly of KwaZulu-Natal. Many flattering descriptions define it – playground of the rich and famous; the most expensive real estate in the province; KwaZulu-Natal’s Paradise Lost; the ultimate holiday destination precinct, peppered with pristine beaches and bathed by sunshine almost all the year around. The much-admired uMhlanga precinct is the perfect backdrop to the province’s greatest mixed-use development of Oceans”. It is perhaps this synergy between the ‘paradise’ location and the opulence of the Oceans development that has contributed to over 90% of the apartment units already being sold. The Radisson Blu Hotel is almost the perfect complementing leisure partner – comprising 209 rooms, 40 long-term rental apartments and two penthouses, plus a state-of-the-art 800-seater conferencing facility.
The hotel development will be managed by an exclusive group of directors including: Vivian Reddy, Dr Anna Mokgokong (chairperson of several JSE listed companies and Executive Chairperson, Community Investment Holdings); Rob Alexander (Chairman, Ducatus Property Group); Judge Vuka Tshabalala (former Judge President, KZN); Prof Dilip Garach (CA and Chairman, Garach & Garach), Graham Wood (former MD, Tsogo Sun Hotels) and AV Mohomed (respected community and business leader and chief trustee, Jumma Musjid).
“I have decided to act and address the criticism that business does not share its wealth. In effect I am giving away R2bn of our future wealth. To this end shares in the 206 roomed Radisson Blu Hotel in Umhlanga Rocks will be offered at an affordable price whereby even a domestic worker will also be able to afford to buy the shares of R20 each. It will give me the greatest joy to see even an average earner point to this iconic internationally renowned Radisson Blu Hotel and proudly state – I am one of the Shareholders in this magnificent Hotel”. Comments Vivian.
For your opportunity to own shares, contact Estate Living.