View Full Version : Zonk'Izizwe Precinct - Mixed Use - ?F - Midrand, Johannesburg


joburg
August 31st, 2007, 02:26 PM
Name: Zonk'Izizwe
Type: Mixed Use
Cost: R15 to R20-billion
Floors: Seemingly numerous
Completion Date: 2010
Location: Midrand (halfway between Joburg CBD and Pretoria CBD)

Zonk'Izizwe - Midrand

This is going to be HUGE!

http://img.photojerk.com/joburg/zonk1.JPG

http://img.photojerk.com/joburg/zonk2.JPG

http://img.photojerk.com/joburg/zonk3.JPG

Featuring:


Town Centre
Office Space
Residential Component
Parks
Museums
An Acquarium
Outdoor Shopping
Hotel
Themed Adventure Experiences
Nightlife Complex
Multiplex Cinemas

joburg
August 31st, 2007, 02:29 PM
South Africa: Work On Zonk'izizwe Site to Start This Year

Business Day (Johannesburg)
30 July 2007
http://allafrica.com/stories/200707300201.html
Nick Wilson
Johannesburg

INFRASTRUCTURE development for the mixed-use property site Zonk'Izizwe in Midrand is due to start at the end of the year, says Old Mutual Investment Group Property Investments.

The project, which is expected to cost between R15bn-R20bn, will encompass the Gautrain's Midrand station, the first stop on the Pretoria line of the rapid rail link. Grand Central Airport is also near the site.

Brent Wiltshire, development executive for Old Mutual Investment Group Property Investments, said they plan to start structure development on the 220ha site in the third quarter of next year.

Zonk'Izizwe will be a mixed-use development including a town centre, residential and hospitality property , offices and retail property.

It will be developed in phases over several years.

"Our first phase will consist of what will anchor the development, which is a new town centre made up predominantly of offices, retail, and residential property, as well as selected hotels," said Wiltshire.

Wiltshire said Old Mutual had received "very good feedback" from most major retailers, who were eager to acquire flagship space .

The Gautrain station is integrated into the development. It had initially been planned as an underground station, but will now be above ground to merge with the development.

The Zonk'Izizwe site has been held for many years by Old Mutual.

The train station has given the company an opportunity to benefit from the residential densification it would attract.

"The strategy of the Gautrain is to ensure densification happens within a certain radius of each station," Wiltshire said.

joburg
August 31st, 2007, 02:35 PM
Back to listing

Zonk 'Izizwe - Traffic
Zonk, South Africa
Developer: Old Mutual Insurance Companies

--------------------------------------------------------------------------

Zonk ‘Izizwe is proposed to become the largest mixed-use development in the entire country. Zonk is located in the Midrand area between Pretoria and Johannesburg, South Africa. The initial phase of Zonk is planned to contain approximately 3 million sq.ft. of retail and entertainment uses (250,000 square meters) to be serviced by a 15,000-car parking garage. The Traffic Group, Inc. was brought on board as a second traffic engineer/transportation planner to design the access and circulation systems for the 15,000-car facility. In a very short amount of time (due to time constraints), The Traffic Group, Inc. designed a multi-lane access system that included two grade-separated ramps and a six-lane speed ramp system to service the 15,000-car garage. The Traffic Group, Inc. designed a pay-on-foot parking system that allows patrons to be issued a parking ticket upon entering the parking level, shop then pay on foot prior to exiting the garage. This pay on foot system eliminates the need for long queuing getting into or out of the garage and reduces the need for extra parking booths because the booths that are used are ticket readers only.

Jakes1
August 31st, 2007, 04:30 PM
wow

Inertia
August 31st, 2007, 04:54 PM
Wow indeed. Would love to see a full render of this project, have no idea of its scale

Jakes1
August 31st, 2007, 07:29 PM
The first phase alone will be the size of Melrose Arch (well, the latter will be 300000sqm when completed. And twice the size of the huge fairlands office complex (150000sqm)! This is absolutely crazy crazy.

Jakes1
August 31st, 2007, 07:30 PM
15 000 car park?! Hectic hectic. Obviously this will serve as parking for the gautrain station as well. But can you imagine traffic around this place? They must do a major upgrade of roads and stuff as well (which they will obviously do) otherwise you will sit in traffic just to get to the trainstation. Sjoewow.

joburg
September 1st, 2007, 09:00 AM
^^ Can you imagine Allandale when this thing goes ahead? Geez!


Wow indeed. Would love to see a full render of this project, have no idea of its scale


Unfortunately the only information I could find of this project was in the press, and here: http://www.ddg-usa.com/Projects/Zonkizizwe/Project.html and also: http://www.trafficgroup.com/projects/zonk.html

This project has actually been around for many years, and it is only now that we are seeing something coming to fruiton. So whilst I'm very excited about the project, I'm circumspect about it given the past delays.

Check this out - http://www.btimes.co.za/97/0413/news/news1.htm.

Did you know that Sun International wished to develop a 'Snow City' near Kyalami? lol.. have u eva.

SA BOY
September 1st, 2007, 11:16 AM
Old Mutual will attempt to recreate the sucsess of the gateway precint in Durban and thats what this project is modeled on. Multi phase over a long time and designed to be buit to siut the economic situation

kulani
September 1st, 2007, 11:40 AM
Here's the design of the 15,000 car park by Traffic Group

http://farm2.static.flickr.com/1344/1293265496_88a414ca57_o.jpg

joburg
September 1st, 2007, 12:41 PM
Old Mutual will attempt to recreate the sucsess of the gateway precint in Durban and thats what this project is modeled on. Multi phase over a long time and designed to be buit to siut the economic situation


Yep indeed. I can see Zonk'Izizwe doing to Midrand what Gateway did to Umhlanga - densification here we come!

Have you heard much about the project Giles?

Mo Rush
September 1st, 2007, 01:09 PM
Ill try and find the powerpoint presentation on this development.

SA BOY
September 1st, 2007, 01:30 PM
I was in CT last week with the developers and heard some issues they face and the goals they hope to acheive

Mo Rush
September 1st, 2007, 03:12 PM
I was in CT last week with the developers and heard some issues they face and the goals they hope to acheive

traffic being one of the issues in the short term

joburg
September 1st, 2007, 04:05 PM
Ill try and find the powerpoint presentation on this development.


That would be FANTASTIC! :)

dysan1
September 2nd, 2007, 06:59 PM
This project was first announced 2 years before Gateway even opened and never happened.

It sounds impressive and large but my worry is the glut of retail development in the midrand area. at present 7 shopping complex's totalling over 300 000m2 of space are planned. to me this is unsustainable and will merely canabalise other markets and stores.

This mixed use development has definately been borne from old mutuals experience with moreland in the Umhlanga ridge area and i do hope that it turns out in a similar way. But as giles said, it will be developed gradually over 15 years or more.

Durbsboi
September 3rd, 2007, 09:39 AM
I also heard about this place before, didnt see any plans on it though, looks impressive.

joburg
September 18th, 2007, 05:11 PM
Big Midrand development will delay Gautrain
Chantelle Benjamin

BUILDING on the R25bn Gautrain project is being delayed in Midrand by a mixed-use property development , which means the station will not be completed in time for the 2010 Soccer World Cup as intended.

Gautrain project manager Jack van der Merwe said on Friday that Old Mutual’s Zonk’Izizwe project, which incorporates the station in its design, was the kind of development it wanted to encourage.

“Its a mixed land-use project so it made sense to delay construction to accommodate the development,” he said .

Now the Midrand station is to be completed in the second phase of construction, which is to take 54 months and involves the remaining rail network between Midrand and Hatfield, and Sandton and Johannesburg.

When first proposed, one of the key intentions of the project was to have it completed by 2010, ensuring that fans and residents would be able to travel from the airport to Pretoria without using the already congested freeways.

The station will have to be moved about 150m from its original location to accommodate the development plans, which include a large lake, a town centre, residential and hospitality property, as well as office and retail property. Situated on a 220ha site, the project is expected to cost R15bn to R20bn. It will be developed in phases over several years.

The rest of the project, according to Van der Merwe, is going as planned. Since construction started in September last year the project has spent R7,14bn. The initial costs were largely on procurement of machinery and materials, he said.

According to Bombela, tunnelling has begun between Park Station and Rosebank with the tunnel on Park Station side now about 3km from the opening. Boring in the soft, waterlogged rock between Rosebank and Parktown Ridge will begin in January using a tunnel-boring machine that is scheduled to arrive from Germany next month. Tunnelling from Rosebank to Sandton station is to start soon .

Mo Rush
September 18th, 2007, 10:25 PM
mm...joburgs version of century city?

joburg
September 18th, 2007, 10:52 PM
Yah.. and Gateway too. Or at least I hope. It could do wonders for Midrand.

Mo Rush
September 18th, 2007, 11:51 PM
I wonder if they are allowed to build skyscrapers at Century City, would be cool if they really turned it into a business district.

hsark
September 19th, 2007, 05:33 PM
thats funny my lecturer is working on this project ive see the video and the render ill ask him if he can swing some stuff 2 me and ill post it

joburg
September 19th, 2007, 08:43 PM
Have you seen any better renders than the one we've got here?

If you can, that'll be awesome.

I'll beg Angelo too to get some.. :)

dysan1
April 20th, 2008, 09:27 PM
same here guys? has much progress been made? not much in press past few months

joburg
April 21st, 2008, 08:44 AM
Well considering that it's part of the Midrand Gautrain station, I think it's a pretty safe (and not optimistic) guess that the development is, if not already in motion, still planned. But then again... It is an educated guess of mine.

joburg
July 7th, 2008, 02:30 PM
Still on track it seems. Download the SAMCO report on it here
http://www.samapping.co.za/SAMCO%20Report%20Downloads/p34%20New%20Town%20Development%20at%20Midrand%20Presents%20a%20Unique%20Investment%20Opportunity.pdf

It appears that the development will be built around Grand Central Airport - i.e. the airport will be smack in the middle of it all. I don't know if this is too clever an idea, not only because the noice of aircraft will impede on property values in the area, but also because you'll be constraining growth of the airport.

Nonetheless, good to see that the project is still taking place. As they say in the report, it'll have a knock-on effect on the area's densification.

eyrie
July 9th, 2008, 07:31 PM
I love this, and calling it Zonk,well that's just great too,sounds like a planet from a b-grade 60's movie

waltjie
August 13th, 2008, 10:03 AM
Within three years, R15bn will be committed by the Triangle Real Estate Development Funds to develop Old Mutual’s land bank projects, which include five large, mixed use developments in Cape Town and Gauteng.

Colin Young, head of institutional property investments at Old Mutual’s Investment Group Property Investments’s Triangle Real Estate Development Funds, says this is “indicative of Old Mutual’s confidence in SA and the economy”.

Young says Old Mutual is expecting a turnaround in the “current trends on a five-year outlook”.

“Because property is a marathon, not a sprint, it’s important that we have a five- to 10-year outlook when contemplating these large developments,” he says.

Three of the large mixed-use developments, which are based in Gauteng, are linked to three Gautrain stations.

The other two are based in the Cape Town central business district.

Young says the most significant of all of these developments is the Zonki’Zizwe mixed use precinct in Midrand, where the largest shopping centre in Africa is being built.

Triangle plans to develop a 200000m² retail town centre.

“It will be unique to SA.

“We are building a development that will create the facade of high street shopping with an array of international and local retailers,” he says.

The “retail town centre” is phase one of what is a multi phased plan and is a R7,5bn investment.

The planned Gautrain station in Midrand is about 400m from the retail town centre.

Phase two of Zonki’Zizwe will be an office park and tourism centre around the Gautrain station.

“We will also be densifying the area around the Gautrain, on the south end of the town centre, with residential property,” says Young.

Phase two is expected to carry a value of R4,5bn.

He says the R2bn third phase of the precinct will include a retail park on the other side of Grand Central Airport and phase four, which is valued at R2bn, will include high density residential property development.

The entire Zonki’Zizwe site is 225ha with the airport running through the middle of it.

“We have finalised an agreement with the government and Bombela.

“The rail line will now be moved to the edge of the property along the K101 highway and that has allowed us the space to create the town centre as originally planned.”

Site assembly and infrastructure build on Zonki’Zizwe will begin in earnest in January next year.

Phase one is expected to be completed by the end of 2011.

Zonki’Zizwe, on its own, will cost about R16bn in total over its 10-year roll out.

joburg
August 13th, 2008, 10:11 AM
awesome awesome :)
they talk about three developmets in Joburg around Guatrain stations? That's Rosebank, Zonk and the third one? Sandton?

wobdog
August 13th, 2008, 11:00 AM
OM Triangle fund has focused its attention on the Gautrain and is trying to capitalise on it. Rosebank and Midrand are their big two and there is a proposed development of a 180,000m^2 retail centre next to the Marlboro station on the opposite side of Marlboro Drive to the station. The land is currently owned by Wits University and is used as a testing ground.

SA BOY
August 13th, 2008, 11:10 AM
so the CT one must be the twin tower project on Aderly st?

JoHaN 15
August 14th, 2008, 08:52 PM
Will centurion get a piece of the pie?:)

joburg
October 22nd, 2008, 09:08 PM
Anyone know anything more about this?
Not sure if these renders have been posted:
http://www.ddg-usa.com/Projects/Zonkizizwe/Project.html

I emailed them and hopefully they'll have something!

Lydon
October 22nd, 2008, 09:21 PM
I would love to hear more on this. It's a huge project and should get the coverage to match!

The E.N.D
November 2nd, 2008, 08:44 PM
Very odd and frustrating that a project that includes *rolls eyes* Africa's biggest mall,still doesnt have a website.I havent been to Grand Central since in a while now but kulani saw ZZ board which most probably means that construction is underway.After I'm done with this week's exams,I'll have to drive to Grand Central to not only check out the ZZ but also the Gautrain Station.

Lydon
November 2nd, 2008, 09:01 PM
It's frustrating indeed. I mean Amazulu World already has a website...

Inertia
November 2nd, 2008, 11:28 PM
Usually the projects that are the worse covered are the ones furthest ahead - atleast that's what I've noticed lately.

Lydon
January 20th, 2009, 10:01 PM
Any updates guys? I hope it hasn't stalled or anything.

dysan1
January 21st, 2009, 12:55 PM
i have heard that it has been severely constrained and delayed by Eskom power constraints in the Midrand area. Without approved power no work can start

p2bsa
January 21st, 2009, 01:43 PM
^^
Yeh. But also remember guys that this area does not fall under the Joburg Metro ... It falls under the Ekhululeni Metro - so I also don't no what the implications could be...

Pule: Which metro has more capacity? (probably Joburg - with its specialist Johansesburg Property Company division)

african biohazard
January 21st, 2009, 01:50 PM
^^
Yeh. But also remember guys that this area does not fall under the Joburg Metro ... It falls under the Ekhululeni Metro - so I also don't no what the implications could be...


I live in Midrand, and from my understanding, the area in question falls under Jo'burg Metro

p2bsa
January 21st, 2009, 02:19 PM
^^^
Ya - sorry dof me.

african biohazard
January 21st, 2009, 02:50 PM
I have driven past the area and I don't see much happening. There's definitely a lot of work going on for the Gautrain station (Grand Central)

Pule
February 24th, 2009, 08:51 AM
Someone told me that they working on swerage system for this one at the momment, can I get any confirmation?

annman
February 24th, 2009, 09:04 PM
I've been such a fan of this development for ages! I really really hope you're right Pule and they're starting to do something. I was getting worried this was pie-in-the-sky stuff again. Such a perfect place to put a "megadevelopment" of this nature. Half way up the Gautrain smack-bang in the middle of JHB and PTA.

Keep some updates coming. Someone on the forum must have some inside info? :)

Lydon
February 24th, 2009, 09:12 PM
I, too, hope it goes ahead. I love my malls haha.

ZATUGA
May 23rd, 2009, 01:54 PM
Midrand’s Zonk’izizwe Town Center chosen as climate-positive project

By: Christy van der Merwe
20th May 2009
The multi-billion Zonk’izizwe Town Center, an Old Mutual Property Investment’s mixed-use development in Midrand, was chosen as one of 16 founding projects of the Climate Positive Development Programme (CPDP).

The programme was a Clinton Climate Initiative (CCI) programme supporting the development of large-scale urban projects that demonstrate the notion that cities can grow in “climate positive” ways.

Climate positive real estate developments would strive to reduce the amount of on-site generated carbon dioxide emissions to below zero.

The CPDP was launched by former US President and founder of the William J Clinton Foundation, Bill Clinton, on Tuesday, at the C40 Summit in Seoul, South Korea.

By combining CCI's business and finance expertise with the technical knowledge of the US Green Building Council, the CPDP would support the planning and implementation process for each real estate development and establish the standards and metrics by which the sites could measure climate positive outcomes.

To reduce the net greenhouse gas emissions of their CPDP projects to below zero, property developers and local governments agreed to work in partnership on specific areas of activity. These included implementing economically viable innovations in buildings, the generation of clean energy, waste management, water management, and transportation and outdoor lighting systems.

“The City of Johannesburg welcomes the opportunity to promote a new and more sustainable building development paradigm in South Africa,” said Johannesburg Councillor for environment Prema Naidoo.

“The city is looking forward to working with Old Mutual and in expanding its existing partnership with the Clinton Climate Initiative. The CPDP is a new and integrated way to achieve the City’s new policy on energy efficiency and resource sustainability in urban development at a faster and larger scale than would have been possible,” Naidoo added.

Zonk’izizwe (meaning ‘all nations’) Town Center would transform one of the last remaining vacant sites in its location, into a mixed-use destination. It would be developed as a new town centre, connecting Johannesburg and Pretoria.

It is located adjacent to the Grand Central Airport, as well as a major national highway, and would also incorporate a new Gautrain rapid rail link station.

Old Mutual Investments said that the design, which was said to embrace sustainable development and green building principles, would set a new standard for the future of eco-friendly South African developments.

The development aims to reduce vehicle-use by the careful placing of buildings to provide access to public transportation, bicycle paths, the lake and walking access to basic services, in order to minimise environmental impact.

The shopping precinct, anchored by major retailers, would be in the heart of the new town centre and with its offering, would aim to serve the broader province and beyond.

The group added that the development also responded to the government’s call for densification, thereby arresting the urban spread that has increased congestion and made service delivery difficult for local government.

When the initial 16 projects were completed, nearly one million people would live and work in climate positive communities. These would be located in Melbourne, Australia; Palhoca, Brazil; Toronto, Canada; Victoria, Canada; Ahmedabad, India; Jaipur, India; outside Panama City, Panama; Pretoria, South Africa; Johannesburg, South Africa; Seoul, South Korea; Stockholm, Sweden; London, UK; San Francisco, USA and Destiny Florida, US.

The other development in South Africa, was Menlyn Maine, a multi-use precinct worth some R7-billion in Pretoria.

The CCI said that in 2008 half the world’s population (3,2-billion people) lived in cities, and that figure was expected to grow to 70% by 2050. Cities also occupied 2% of the world’s landmass, while they were responsible for more than two-thirds of global energy use and greenhouse gas emissions.

How cities change and grow was viewed as a critical component to tackling the climate crisis.

ZATUGA
May 23rd, 2009, 02:12 PM
Zonk'izizwe
Midrand, Gauteng

A distinctive curvilinear shape defines the core of Zonk'izizwe, giving an unmistakably African imprint to this branded town center developement between Johannesburg and Pretoria. The Gautrain station and the rapid rail link between the two cities is integral to the design and development of the master plan. The vital heart of a larger master-planned community encompassing gated residential, office, retail, and mixed-use destination. Sustainable developement and 'Green' architecture figure prominently in the Zonk'izizwe design with innovations like bio-water recycling / purification and solar power energy contributions Zonk'izizwe renewable resource management, energy efficient stategies and a pervasive conservation ethic sets a new standard for the future of eco+friendly South African development.
http://r2crua.bay.livefilestore.com/y1pOKfvGaFPPaP9Yp7wiN4FAwYbqfC5zhfILrfSjeolj1FCytiJNZWPWbeqtD5PJjt6Xj8oAU0CPDM0Ujfy4-B6iQ/zonkizizwe4.jpg
http://r2crua.bay.livefilestore.com/y1pFJUtB5Mw0eqbycioyv31J3ZBYt-eb3-9VOrLykqt2DtBVRf5An36FGE7i5-7uNQJigE8cjdSsxecFxskj30H_w/zonkizizwe5.jpg
http://r2crua.bay.livefilestore.com/y1p31AtyjNwDBJ2xSIQ2hM9Ii3jfXUjHbw2ukwReboP4rwXgxTu_djc9kBKiEKHPjlW_ibUQic86h6l5w_yDEWu1g/zonkizizwe.jpg
http://r2crua.bay.livefilestore.com/y1p0u9zMBnIGsjbqKF-YcC6FgwAE7UP_48ED2gYpFlK2-DUA_3ciee0HZePEjCWk_d3ndPh_CXClbcRXEo4NO3AyQ/zonkizizwe1.jpg
http://r2crua.bay.livefilestore.com/y1p4Xfqp3IlHRCTO_0B8647cBFGQViGig-uIfXQZRBlM4PJlDCfNpHd4ZgQbhhSUDEb6mQOcoW5h1ArQIg4EnPaww/zonkizizwe2.jpg

Lydon
May 23rd, 2009, 04:47 PM
I can't see any of those livefilestore photos you're posting. Can anyone else?

Gulivar
May 24th, 2009, 07:01 AM
Nope.

ZATUGA
May 24th, 2009, 07:39 AM
And now do you manage to see them, for I just changed to another source.

Lydon
May 24th, 2009, 05:29 PM
I can indeed thanks ;)

dysan1
May 24th, 2009, 06:35 PM
new timescales?

Gulivar
May 25th, 2009, 06:41 AM
Very nice, I like the shape, and for once by the looks of it, no palm trees!

Lydon
October 13th, 2009, 09:33 AM
Guys, is there any news on this one?

SA BOY
October 13th, 2009, 04:03 PM
Bridge city shoould bne the model for this one

joburg
October 13th, 2009, 04:13 PM
African Biohazard, you live up in Midrand - you know what's happening here?
I haven't seen much lately

Inertia
October 13th, 2009, 05:22 PM
Was hearing on the radio of some violent protests in Zonk'Izizwe

Lydon
October 13th, 2009, 05:29 PM
o_O

Inertia
October 13th, 2009, 08:15 PM
Which is pretty standard news these days

african biohazard
October 13th, 2009, 08:35 PM
Tom, I go past the area every day - train station is looking great, but so far I don't see much happening on this project.

Inertia - I'm not sure if its the same place?

Inertia
October 13th, 2009, 09:17 PM
One of the townships in the area?

joburg
October 14th, 2009, 09:38 AM
^^ I think you are thinking of Sakhile. Which is in Mpumalanga. ;)

african biohazard
October 14th, 2009, 02:15 PM
One of the townships in the area?

I doubt it. townships nearby include Rabie Ridge, Ivory Park and Ebony Park - basically extensions of Tembisa.

Inertia
October 14th, 2009, 04:57 PM
Well "violent protests in Zonk'Izizwe" was definitely the headline read out.. So who knows

kulani
October 16th, 2009, 05:07 PM
Well "violent protests in Zonk'Izizwe" was definitely the headline read out.. So who knows

definitely a mistake, there is no township with this name probably in the entire joburg metro. the only other township that has been on the news is Sakhile.

Lydon
February 6th, 2010, 02:44 PM
Any news on this? Anything happening?

The E.N.D
February 6th, 2010, 03:11 PM
Driving past the area,one doesn't see any progress but to be fair,the location is quite steep so all isn't visible.Was going to take pics yesterday or today but I got a bad case of the tonsils.Not even sure the area is accessible by foot but I'll try in the following week(s).

african biohazard
February 6th, 2010, 03:35 PM
The area is part of my running route ....again, apart from the station and gautrain development, Idon'tsee much. However, I have no doubt that th area is being earmarked for big things in the future.

The E.N.D
August 15th, 2011, 10:46 PM
Sigh....

http://www.moneyweb.co.za/mw/action/media/downloadFile?media_fileid=6460&a=1133&s=145x120


Financial Services

Phakamisa Ndzamela|


15 August 2011 07:26


Old Mutual’s R20bn town centre development



Plus plans to invest close to R2bn in expanding Menlyn Shopping centre next year.

JOHANNESBURG – Old Mutual (JSE:OML (http://www.moneyweb.co.za/mw/view/mw/en/page296058?oid=2184&sn=2009+Detail&pid=296058)) says it is working on a R20bn town centre in Midrand Johannesburg and among other separate initiatives it is looking at investing close to R2bn in expanding the Menlyn shopping centre in Pretoria next year.


Old Mutual Property Managing Director Ben Kodisang says the R20bn town centre known as Zonkizizwe, next to Gautrain station in Midrand, has been taking longer than expected and time was being spent to get the necessary approvals in order for construction to start.


“We are creating a town centre. The first phase will be anything from R5bn ... over time it’s likely to be R20bn. We are just waiting for approval process which is taking longer than expected. We are going to start with the retail phase first,” Kodisang said.


Kodisang said the project will be funded through a combination of policyholder monies, debt and equity. However, he noted that Old Mutual would partner with some companies and the R20bn will not come from it alone.



The Zonkizizwe project will be on 350 hectares of land, says Kodisang and will boast retail, residential, industrial offices and parking bays for the Gautrain. Kodisang could not say when the project would start, only stating that the company was working on the necessary approvals.
Old Mutual Property is also looking at expanding its Menlyn shopping centre in Pretoria and the Rosebank property in Johannesburg.


“We are looking into redeveloping Menlyn. We have got a great asset in Menlyn... It is an awesome opportunity to expand the retail space. At the moment we have just under R2bn on expanding Menlyn. We are expecting to start sometime next year,”
Kodisang said there was appetite for retail space and a number of international and local retailers were showing an interest to expand.


Kodisang said Old Mutual Property, will continue expanding its properties in Rosebank and invest about R350m to build an office tower there.
Asked if it was wise to make investments in these trying times, Kodisang responded: “Things are tough but we are working on the premise that within the next three years the country will be a better place.”


Kodisang said this was a great time to work on growing the Old Mutual Property portfolio which is around R26bn. Kodisang says with the kind of investments Old Mutual Property is making, it’s possible the property portfolio will increase to R35bn in the next five years.


On challenges around occupancies, Kodisang said a lot of vacancies were currently in office spaces partly due to retrenchments. He says retail is mixed, but national retailers have been doing very well because of their defensive nature as food or drug sellers.


Kodisang said Old Mutual Property is 70% weighed on retail, 10% around offices with the balance in industrial premises.

http://www.moneyweb.co.za/mw/view/mw/en/page292516?oid=549760&sn=2009+Detail