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Snarl-up in Midrand's development queue
PROPERTY PROJECTS
MIDRAND is set to experience a R10-billion property boom over the next four years, but developers are embroiled in a clash over zoning rights. At least four new hotels, theme parks, shopping centres, museums, botantical gardens, zoos, wilderness parks, residential schemes and office complexes are planned, while as many as four groups may apply for casino licences. The most upmarket project is the R3-billion Zonk'Izizwe (All Nations) shopping resort on an area of 65ha. Backed by Old Mutual, it will be Africa's largest shopping centre. Also planned for the area is the R2-billion Mo Afrika (This Place Africa) retail and leisure centre east of the Samrand development, to be built by Randjesfontein Race Course Investments and Woolworths. A combined Sage/Colliers consortium has expressed interest in a similar project. It was announced this week that Sun International is planning a leisure complex incorporating a casino on a 100ha site known as Snow City near Kyalami. Competing for a casino licence will be Johnnic Properties which this week bought a 34.7% stake in Gallagher Estate. Johnnic has a 21ha property adjoining Gallagher Estate and, if successful in its casino application, it will build a five-star hotel with the Hilton group, plus an entertainment and shopping complex. Both Zonk'Izizwe and Mo Afrika have indicated they may also apply for a casino licence if this strengthens their applications. The Midrand township tribunal began hearing zoning applications on Friday and final decisions are expected by the end of May. With some of the groups bidding for similar zoning concessions in an area of about 150ha, conflict has arisen. Ian Watt, head of Old Mutual Properties, says it is unlikely that zoning will be given to build more than one retail complex in the area.
Paul Simpson, real estate executive of Woolworths and a director of Mo Afrika, says "it will be very interesting to see who gets approval for the retail rights. There is room for only one such complex." Alan Dawson, Midrand's executive chairman, says the area is in the throes of a potential property boom worth more than R10-billion, six times its current annual growth rate. "We have spent R100-million on road, water and electrical infrastructure to accommodate this level of development and the new road interchange on the N1 will easily meet the demands of Zonk'Izizwe." The Zonk'Izizwe complex would stretch from Grand Central Airport to the existing Midrand town centre. The Mo Afrika project on 100ha could involve a black empowerment group as partners.
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