- Catalytic Project: Category A (in or near implementation)
- Area: Transport Corridors
Project description
Connecting under-developed parts of the City to economic opportunities, to dismantle spatial segregation and to maximize mixed use opportunities along transportation corridors.
Socio-economic benefits
- Investment Value: R2,5-billion
- Annual Rates: not yet determined
- Permanent Jobs: 1 000
- Other:
- Affordable Housing
- Student accommodation
- Improved neighbourhood that is safe
- Improved quality of the physical environment
Project status*
- The developer appetite has been tested through a socio-economic survey and market analysis.
- Rezoning for all 3 nodes has been completed and infrastructure analysis for the King Edward site has been done.
- Infrastructure funding allocation has been done through line departments of the City.
Key issues / challenges
- Most developers want free hold rights on the land, which goes against the City’s position on long term lease.
- Social housing grant constraints, which limits desirable densities.
- Developers prefer to develop a monolithic use as opposed to complete mixed use, which then defeats the objectives of the site.
Response and way forward
- Continuous engagement between World Bank, National Treasury, AECOM and City to resolve challenges.
- The Request for Proposal to get the developers’ response, test appetite for PPP approach.
- The anticipated launch date for Umbilo node is May 2017.
*As at March 2017
Contact / enquire
For the most current update on opportunities, project progress, outstanding actions and investment requirements, please contact Invest Durban.
