The City of eThekwini has signed a memorandum of agreement to create the Brickworks Development in the Avoca Development Node, north of Durban.
The node measures approximately 350 hectares and has potential capital investment of R10 billion, the city said.
“An estimated 23,000 construction jobs and 13,500 permanent jobs could be created. Investec Property have committed to ensuring that all contractors during the construction phase of the development will be required to create opportunities for local enterprises wherever possible.
“This to ensure that the Brickworks Development contributes meaningfully towards job creation and socio-economic transformation.”
As part of the city’s strategy to create a conducive environment for investment, it said it will offer a substantial rates rebate to investors and developers.
This forms part of the city’s Economic Development Incentive Policy (EDIP) that aids investment in the city that contributes to job creation, it said.
“The EDIP aims to position eThekwini as a preferred investment destination and focuses on supporting new investments based on their potential and future contribution to economic growth, spatial regeneration and job creation within the Municipal area, in accordance with the strategic objectives of the municipality.
“In order to incentivise the Brickworks Development and realise the anticipated socio-economic benefits resulting from the development, including the increased rates income for the city once the development is undertaken, a rates rebate is proposed for five years for each of the three phases of the full Brickworks Development.”
Investec Property said that it intends to develop the site in three phases of approximately thirty hectares of developable land in each phase.
The proposed development will require an investment of over R1 billion in infrastructure development which will take over fifteen years to develop, it said.
This will result in significant risk to the developer, with respect to potential rates increases on the undeveloped phases of the project while it is undertaking the development of the first phase.
“Through our partnership with Corobrik, who for more than 100 years have provided eThekwini with bricks to build some of the most iconic buildings in the City, we were able to identify this unique development opportunity,” said Investec Property joint chief executive David Rosmarin.
“The collaborative nature of this undertaking was made possible through eThekwini’s innovative establishment of the City’s ‘One Stop’ Catalytic Project Unit alongside their pro-active and unique Rates Rebate Policy, aimed at encouraging development.”
Rosmarin said that eThekwini plays an integral role in the economy of South Africa, serving as the logistics hub and main entry port into the country.
“The Brickworks Development will further strengthen and enhance this role while stimulating regional economic development. Investec Property are proud to be a part of this unique development and we thank Mayor Cllr Mxolisi Kaunda and City officials who contributed to bringing this project to fruition,” he said.