Banele Ginindza
LIBERTY Property Portfolio have announced the establishment of a new state-of-the-art 100 bed private health-care facility at the John Ross Eco Junction in Richards Bay.
The Stanlib subsidiary intends to cash in on Transnet’s planned R33 billion spend in Richards Bay over the next seven years.
The health-care facility is the second development on the 195 000m2 site, purchased from Arctic Sun.
The first development is a motor dealership expected to come on stream in June.
“We identified that area as a growth node and purchased a huge tract of land there. We are looking at other tenants in warehousing, distribution type of businesses and some retail,” said Stanlib fund manager Alex Phakathi, who manages the overall portfolio.
The development is a joint partnership between Liberty Group and Tuscaloosa, who will co-own the property and operate as landlords of the R220 million health-care establishment.
Development will start in the third quarter of 2015, with completion expected at the end of 2016. The land is well positioned within the City of uMhlatuze, at the intersection of the N2 Highway (linking Durban and Pongola) and the John Ross Parkway (which connects Richards Bay and Empangeni).
The portfolio has for the first time added health care to its range of assets with the conclusion of a 20-year lease agreement with wholly black-owned private hospital group, Melomed Richards Bay Proprietary.
The John Ross Eco Junction is a diversified commercial and industrial development across 30 sites on the property. The hospital will primarily serve areas around the greater uMhlathuze municipality, which includes Richards Bay, Empangeni, KwaMbonambi and Mtunzini.
The portfolio has traditionally been weighted towards retail, with assets including some of South Africa’s prime super-regional shopping centres. Among these are Sandton City and Eastgate in Gauteng, Midlands Mall in KwaZulu-Natal and Promenade Shopping Centre in the Western Cape.
“Melomed is a significant player in the rapidly developing health-care industry in South Africa. It will be a prime, value-adding tenant within the junction and provide a vital service to the wider community.
“The Liberty Property Portfolio is always finding new ways to strengthen its composition to benefit our investors, and I believe Melomed will be a strong tenant that will enhance the portfolio’s returns,” Amelia Beattie, the chief investment officer of the Stanlib Direct Property Investment Franchise, said.
The investment team is now focused on diversifying into light industrial and office property to add further value to shareholders, and the signing of Melomed as an anchor tenant is in line with this strategy.
“As fund managers our role is to find innovative, fresh ways to channel our clients’ investments into areas that will deliver solid returns over the long term. Not only do we seek growth, but opportunities that will benefit the communities we operate in,” Phakathi said.
Dr Lungile Masuku from Tuscaloosa, the company that has been awarded the hospital licence, said: “We are pleased to be involved in this investment and development, which will bring health-care services to the local community while boosting economic growth in Richards Bay and the wider economy.”