Introducing the R15bn Westown Development: A New ‘High Street’ Lifestyle District

Over R2 billion in private sector funding has been directed towards the Westown mega-development in Shongweni, strategically located on the N3 between Durban and Pietermaritzburg. A significant portion of this investment is allocated to the new R1.4 billion retail and lifestyle hub known as Westown Square.

This announcement was made by Carlos Correia, CEO of Fundamentum Property Group, which is leading the ambitious R15 billion Westown project. He spoke to Moneyweb ahead of the upcoming public opening of the first phase scheduled for this Thursday (27 March).

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

Westown Square features the 48,000 m² ‘retail core’ of this extensive development, offering ‘high street’ shopping, major brands such as Checkers, Pick n Pay, Mr Price, Edgars, and a variety of dining options. It represents the largest property initiative of its kind in KZN since the construction 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 constructed on previously used Tongaat Hulett sugarcane land – Westown emerges as a new mixed-use town center that includes retail and commercial areas, residential units, logistics parks, motor dealerships, and community amenities like a hospital and schools.

However, in terms of commercial size, it is smaller compared to Umhlanga Ridge and Gauteng’s Waterfall City, with a large portion of the 2,000 ha site reserved for green open spaces.

“Westown Square is not just another shopping center; it’s a lifestyle hub that merges shopping with a high-street retail atmosphere,” Correia told Moneyweb following a spectacular VIP launch event last week celebrating the completion of the first phase.

“We are bringing something fresh to the market that aligns with the local environment. It will offer a lifestyle experience, with significant areas designed as open-air spaces,” he added.

Correia, whose partners in the Westown venture include local tech entrepreneurs Sean and Donovan Bergsma, invited executives from competing firms like Flanagan & Gerard, Atterbury, Devmco Group, and Oceans Umhlanga’s Vivian Reddy to the launch event. Attendees also included dignitaries from the Public Investment Corporation, directors from Fundamentum, and officials from eThekwini Municipality.

During the event, Sean Bergsma highlighted the positive impact that the entire Westown development is having on the local community, emphasizing that its influence will extend beyond job creation.

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

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Bergsma expressed appreciation to the eThekwini Municipality (which governs the Shongweni area), noting that the project’s swift advancement would not have been possible without its support through funding for bulk infrastructure.

Bulk infrastructure

Fundamentum has been fortunate; the eThekwini Municipality is allocating around R600 million for infrastructure enhancements in the region.

In contrast, when Tongaat Hulett was developing Umhlanga Ridge and more recently, Ridgeside (prior to its financial issues), it received very limited infrastructure support from the city, similar to Attacq’s Waterfall City developments.

“The collaboration from eThekwini showcases how effective public-private partnerships can work, demonstrating the possibility of successful cooperation between government and private sectors,” Bergsma noted.

He also recognized Absa for financing the development of Westown Square by Fundamentum and appreciated the local ‘Inkosi’ supporting the project.

“Tongaat Hulett is also a partner in this project [Fundamentum holds a long-term lease on the land] and took considerable risks, but this project illustrates a formidable alliance among local investors,” he pointed out.

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

Correia informed Moneyweb that, in addition to the R600 million infrastructure aid from the eThekwini Municipality for the Westown project, Fundamentum has already invested over R2 billion in the initial phase.

This funding includes R1.4 billion for Westown Square and around R500 million for related infrastructure improvements, such as enhancing the Kassier Road/M13 bridge that connects to the N3 national highway.

“In the coming two years, we project an additional R2 billion in private sector investment to enter Westown. This will feature a new R580 million private hospital, Balwin Properties’ upcoming Shongweni Eco Park apartment project, and a new motor showroom,” he said.

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, stated that Westown Square is a crucial catalytic project for the metro in the Shongweni region, located west of the city.

“This landmark venue, which will open to the public on 27 March, is expected to transform retail, dining, and entertainment experiences in the area, thereby enhancing Durban’s appeal as a key tourism destination. The project will drive growth along the N3 corridor from Durban to Pietermaritzburg. It’s our equivalent to Midrand,” he noted.

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