Westown Development Introduces New Lifestyle District Modeled after High Street, Investing R15 billion

More than R2 billion from the private sector has been funneled into the Westown mega-development in Shongweni, situated on the N3 between Durban and Pietermaritzburg. The majority of this investment is directed towards a new R1.4 billion retail and lifestyle district named Westown Square.

This information was shared by Carlos Correia, CEO of Fundamentum Property Group, which is spearheading the R15 billion Westown project. He spoke with Moneyweb in anticipation of the public opening of the first phase this Thursday (27 March).

Listen/read: R15bn Westown developer places faith in a ‘KZN Comeback’ [July 2023]

Westown Square comprises the 48,000 m² ‘retail core’ of the comprehensive development, featuring ‘high street’ shopping, major retailers like Checkers, Pick n Pay, Mr Price, Edgars, and an array of restaurants. It serves as the cornerstone of the largest property project of its kind in KZN since the development of Umhlanga Ridge New Town Centre (near Old Mutual’s Gateway Theatre of Shopping) began in the early 2000s.

Similar to Umhlanga Ridge – which was also developed on former Tongaat Hulett sugarcane land – Westown serves as a new mixed-use town center encompassing retail and commercial spaces, residential apartments, logistics parks, motor dealerships, and community facilities such as a hospital and schools.

However, on a commercial scale, it is smaller than Umhlanga Ridge and Gauteng’s Waterfall City, with the majority of the 2,000 ha site dedicated to green open spaces.

“Westown Square is not merely another shopping center; it’s a lifestyle destination that integrates shopping with a high-street retail experience,” Correia remarked to Moneyweb after a stunning VIP launch event last week commemorating the first phase’s completion.

“We are introducing something innovative to the market that is also compatible with the local area. It will be a lifestyle experience, with a significant part of the center being open-air,” he added.

Correia, whose partners in the Westown initiative include local tech entrepreneurs Sean and Donovan Bergsma, extended invitations to executives from rival developers such as Flanagan & gerard, Atterbury, Devmco Group, and Oceans Umhlanga’s Vivian Reddy for the launch event. Dignitaries from the Public Investment Corporation, as well as directors from Fundamentum and officials from eThekwini Municipality, were also in attendance.

During the event, Sean Bergsma underscored the positive effects the overall Westown development is having on the local community, emphasizing that it will create a lasting impact beyond just job creation.

“This venture has been in development for several years and represents one of the largest private sector investments in South Africa and KZN. We take pride in being local investors in the Westown project, but ultimately, it belongs to the community,” he stated.

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Bergsma expressed gratitude to the eThekwini Municipality (which oversees the Shongweni area), noting that the project’s rapid progress would not have been possible without its support through grant funding for bulk infrastructure.

Bulk infrastructure

Fundamentum has been fortunate; the eThekwini Municipality is committing around R600 million to infrastructure improvements in the region.

In contrast, when Tongaat Hulett developed Umhlanga Ridge and, more recently, Ridgeside (prior to its accounting scandals and financial difficulties), it received minimal infrastructure funding from the city, similar to Attacq’s Waterfall City developments.

“The support from eThekwini exemplifies how public-private partnerships can succeed, showcasing that government and private sectors can collaborate effectively,” Bergsma remarked.

He also acknowledged Absa for financing Fundamentum’s development of Westown Square and recognizing the backing for the project from the local ‘Inkosi.’

“Tongaat Hulett is also our partner in this project [Fundamentum holds a long-term lease on the land] and took significant risks, but this project is indicative of a powerful alliance among local investors,” he noted.

“We are eager to explore the next phase of this 2,000ha precinct… For those familiar with Umhlanga New Town Centre, this development is comparable in scale,” Bergsma concluded.

Correia informed Moneyweb that, aside from the eThekwini Municipality’s R600 million infrastructure support for the Westown project, Fundamentum has already put over R2 billion into the initial phase.

This investment encompasses R1.4 billion for Westown Square and approximately R500 million for associated infrastructure, including the improvement of the Kassier Road/M13 bridge descending from the N3 national highway.

“In the next two years, we expect an additional R2 billion in private sector funding to flow into Westown. This will include a new R580 million private hospital, Balwin Properties’ upcoming Shongweni Eco Park apartment development, and a new motor showroom,” he stated.

Read:
Balwin in R133.7m KZN land deal with Westown developer
Construction on KZN’s new mini city Westown to finally begin [Aug 2022]

Cyril Xaba, the Mayor of eThekwini, claimed that Westown Square is a pivotal catalytic initiative for the metro in the Shongweni region, situated west of the city.

“This landmark location, which will be accessible to the public on 27 March, is anticipated to revolutionize retail, dining, and entertainment experiences in the area, thereby reinforcing Durban’s status as a prime tourism destination. The project will spark growth along the N3 corridor from Durban to Pietermaritzburg. It stands as our equivalent to Midrand,” he remarked.

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