The prime parking lot development site in front of uShaka Marine World at the Durban Point Waterfront is set to be acquired by JSE-listed Bonatla Property Group in a R22.5 million deal.
Bonatla announced the deal on the JSE’s Sens news service last month and said it would be effective from April 1.
Group chief executive Niki Vontas said yesterday it was “virtually a done deal”, with an audit being finalised this week.
He said Bonatla had signed an agreement with Stagestep Investments. Under the deal, Bonatla would acquire the entire issued share capital with all shareholder claims and loan accounts in a company called Eagle Creek.
Eagle Creek’s only asset is the 7 846m2 car park in front of uShaka, the site where the planned Shaka’s Gate upmarket apartment block and parkade development failed to take off.
Vontas said the acquisition was also central to Bonatla’s investment in strategic non-speculative property investments and would consolidate its black economic empowerment strategy.
Some property experts canvassed by The Mercury were sceptical about Bonatla’s investment plans. Bonatla has had a spotted history on the JSE, having been suspended a few times for non-compliance with the exchange’s rules. It also made the headlines in the past two years when it tried to buy the troubled Sharemax property portfolio. But insiders say the group is trying to strengthen its image, having brought in some new directors in the past few years, including Durban businessman Themba Ngcobo.
Approached for comment, Ngcobo said Vontas was the company’s only authorised spokesman.
Vontas said the latest Durban Point deal was important for Bonatla.
“We first committed to an involvement in the Durban Point Waterfront as far back as 2007 when we tried to buy the 50 percent stake in the Durban Point Development Company held in the Malaysian-based Renong,” he said.
“We have not had success with the deal, which has been held up. However, we could not wait and decided to invest directly in the Durban Point. The uShaka parking site, with up to 100 000m2 of mixed-usage gross lettable area, will be our first investment. We are looking at other sites in the Durban Point Waterfront and in KZN.
“We believe development of this site could trigger development of the ‘super block’ mall site at the Durban Point Waterfront. The acquisition of Eagle Creek will allow for the development of the first predominantly commercial development in the Durban Point.
“Bonatla plans to develop a bigger parkade with a small leisure or hotel component on the site. It is important for uShaka not to lose this parking and to create more parking for the Durban Point to trigger further commercial development. The property zoning will allow the development of an approximately 3 000-bay parkade (84 000m2 gross lettable area of parking space) and 16 000m2 of gross lettable area of residential or hotel space.”
Vontas said the idea was to link the parkade with the “super block” to ensure the needs and the strategic goals of the Durban Point Waterfront.
“The Durban Point was launched during the residential property market boom seven years ago, but commercial development is what will make the development fly. All the developments that have been built at the Point did not look at the issue of parking holistically. We need something like the Melrose Arch, where there is common parking for the development.
“We believe strongly in the long-term potential of Durban Point Waterfront. It is at the entrance of Africa’s busiest port and links with Durban’s great new promenade. It also has a successful tourist attraction in uShaka as its anchor, but retail there is too small and sporadic. The area needs more commercial development for it to come alive.”
