Durban - Construction of the R10 billion Zimbali Lakes Resort is officially underway, with the bulk earthworks having already commenced on site. This significant milestone follows the developers, IFA Hotels & Resorts, formally achieving the Record of Decision (ROD) in September this year.
As a 350 Ha mixed-use, multi-generational and pet-friendly estate, Zimbali Lakes Resort encompasses a range of residential opportunities from freehold land, to Sectional Title developments as well as a retirement offering. Within the luxury estate is a retail node, short and long-term accommodations, an international hotel, office space, medical suites and a comprehensive sports facility.
CEO of IFA Hotels & Resorts in SA, Werner Burger, said the success and strength of the Zimbali brand was apparent at the launch of Zimbali Lakes Resort, which achieved R700 million worth of sales on launch night
"This has got us to where we are today. We are very proud to announce that Zimbali Lakes Resort has officially broken ground," Burger sad.
Following the commencement of construction, the first property transfers are expected to take place in Q4 2019. It is also anticipated that the 30 Ha lake, the estate’s most unique feature and the 18-hole golf course will be complete in 2020.
“This development promises economic opportunities regionally through the creation of approximately 35 000 indirect jobs during the construction phase and an estimated 3000 permanent jobs on completion. Furthermore, the addition of potentially 2500 residential dwellings within Zimbali Lakes Resort translates into approximately R63 million in annual rates for the KwaDukuza Municipality. Ultimately, these rates will be channeled to improve and maintain existing infrastructure as well as develop new infrastructure to accommodate the growing population in Ballito and KwaDukuza," Burger said.
IFA Hotels & Resorts has been a direct foreign investor in South Africa since 2005 and has made significant investment into KwaZulu-Natal and South Africa. IFA Hotels & Resort will continue its commitment to South Africa in the coming years through its development of Zimbali Lakes Resort in KwaZulu-Natal and Legend Golf & Safari Resort in Limpopo Province. Both Zimbali Lakes Resort and Legend Golf & Safari Resort are master developments and will undoubtedly become landmarks with sustainability at their core.
Regarded as one of South Africa’s first mega estates, the Zimbali Coastal Resort was a catalytic development whose magnitude had never before been seen in KZN. The 350 Ha Zimbali Coastal Resort has experienced unprecedented growth and unwavering market demand since its inception and the strength of the Zimbali brand has enabled the developers to bring Zimbali Lakes Resort to market.
Since its launch in December 2017, Zimbali Lakes Resort has achieved unwavering success with a number of noteworthy milestones. This included the Joint Venture (JV) deal with the country’s leading retirement brand, Evergreen Lifestyle, Amdec Group’s retirement lifestyle business. This partnership will see a R3 billion retirement offering within Zimbali Lakes Resort, which will include sectional title apartments to be sold on a Life Rights basis. It is geared around the retirement market’s demand for secure retirement living for over-55’s and will provide a dedicated on-site Healthcare Centre, assisted living facilities, frail care and an array of luxury lifestyle amenities.
More recently, Zimbali announced that it had partnered with boutique financial consulting firm Jaltech to create a R2 billion property fund. The property fund, Zimbali Capital, is an approved Section 12J Venture Capital Company which offers investors attractive returns backed by quality property and hospitality assets, with the added benefit of receiving a tax deduction of up to 45% on the investment amount.
Jonty Sacks, Partner at Jaltech said the attraction of investing into Zimbali Capital means that, under Section 12J, the cost of your investment is effectively reduced.
"For example, if during the financial year ending February 28, 2019, a taxpayer (in the highest tax bracket) has had PAYE of R450 000, and the taxpayer invests R1 million into Zimbali Capital, the taxpayer may be entitled to receive a refund from SARS of the full R450 000. This means that you have effectively only invested R550 000 into the fund. The benefit here is that you can still earn a return on the full value of your investment," Sacks said.
The commencement of construction at Zimbali Lakes Resort will be of particular interest to investors who are looking to capitalize on the opportunities offered by Zimbali Capital, namely Boulevard PAD. Set within Zimbali Lakes Resort, The Boulevard is a modern, mixed-use development encompassing residential, hospitality, retail and offices.
On December 1, Boulevard Hotel and Boulevard PAD, a hospitality project comprising 177 keys, will be introduced to the market with opportunities starting from R1 million.
Burger said Zimbali Capital will not only provide a vehicle for South African taxpayers to reduce their tax liability but also an exceptional investment opportunity through its hospitality and student housing products.
"Shareholders will see the benefit of their investment not only because Zimbali has proven to be a strong and desirable brand with undeniable longevity, but because of the overwhelming potential for investors to see a return on their investment earned through short and long-term rentals at Boulevard PAD. This will also give investors geographical spread through investing in the country’s 3 most prestigious mixed-use master developments- Zimbali, Legend Golf & Safari Resort, and De Zalze,” he said.