Blythedale Coastal Resort

Business in Durban magazine chatted to the eLan Group about the Blythedale Coastal Resort development which, after a 12-year delay, is set to be relaunched

Growth along the North Coast of Durban has been steadily increasing over the last few years. Upgraded road networks, King Shaka International Airport, major shopping developments on the horizon, and the influx of people from all over the country are fuelling this cycle of supply and demand.

And far from slowing down, this trend is only set to gain momentum, with the much anticipated 1 000hectare Blythedale Coastal Resort set to relaunch in October this year after the final settlement of all land claims.

In May this year a number of media articles reported that Durban showed the greatest growth in the number of millionaires living in the city, with an increase of 200% compared to the national average of 135%. According to the South Africa 2015 Wealth Report, these millionaires are individuals with a net asset of R12-million (US$1-million) or more.

Report analyst Andrew Amoils said this increase was fuelled not only by millionaire growth in uMhlanga and La Lucia – particularly among the local Indian community – but along the North Coast of KwaZulu-Natal where the super-rich are buying second homes and areas such as Ballito and Zinkwazi are becoming the new hotspots for investment.

Perfectly positioned between these two so-called hotspots, Blythedale has been referred to as the blueprint for integrated greenfields developments. “The philosophy behind this concept is to create an integrated estate with the village-notion forming the basis of the resorts’ long-term management plan,” said CEO of eLan Property Group Mark Taylor.

The project has been divided into five themed estates that have been designed not only to cater to the needs of the residential market but to attract investors too.

• Blythedale Ocean, conceptualised around the themes of rest, relaxation and the serenity of the ocean, consists of sectional title cluster homes, spacious apartments and large seaside properties.
• Blythedale Forest draws on the elements of untamed beauty that present themselves in the 320hectare indigenous forest. This development will include dams and lakes as well as an Environmental Centre, all focusing on outdoor living.
• Blythedale Golf is built around an 18-hole Championship Golf Course set to be designed by Ernie Els in a possible partnership with world-renowned golf course designer Peter McEvoy. This development will include Mediterranean-styled villages that will in time, be complemented by a Pro Shop, restaurant, swimming pools, a golfing school, and a central piazza adorning each village.
• Blythedale Equestrian will include horse trails and equestrian facilities with 30 4 500m² freehold sites to choose from in this, the smallest but most exclusive component of the resort.
• Blythedale Hills focuses on social development. A mixed-used area of commercial, retail and 1 000 entry-range residential units, it will be anchored by a John Alan Sporting School of Excellence and two on-site schools serving the local community. Double-storey properties will include a bottom floor of agri-industrial zoned businesses, the thinking being that residents can be business people working from home too.

Attractions for investors include:

• A 25 000-45 000m² shopping centre with a major anchor tenant set to come on board;
• Retirement villages;
• Timeshare units;
• Apartments;
• Affordable housing;
• A water & theme park;
• Various hotel offerings;
• A professional film studio.

The success of Blythedale Coast Resort will depend on how fully the plans created can be delivered on, but more importantly, and as the history of this development has shown, how successfully the cross sections of communities can be integrated and managed in one location. What is for sure, is that the face of the North Coast is forever changing for the existing communities and for the super-rich buoying Durban’s millionaire status. – Cara Reilly

LAND CLAIMS: WHAT HAPPENED WHEN?

“Understanding community needs has been eLan’s focus for the last few years, with major land claims that first surfaced in 2006, having put the brakes on development until now.

“While these land claims are well and truly settled, it is worth noting the land claim process and timelines, particularly as Blythedale is now seen as the most secure piece of land from a claim point of view, and is being touted as a test case for future developments of this nature,” says Taylor

• 2003: eLan purchased the Blythedale property from Rodger Stewart, a third generation owner of the farm.
• 2003-2006: Rezoning of the land from agricultural to retail, residential and hospitality took place. At this point land claims were investigated, but none had been lodged.
• 2006: Two weeks prior to zoning approval a land claim was gazetted. Permission from the tribunal was granted to continue with the project launch while negotiations with community took place.
• Project launched with R570-million and within four months had rocketed to R1,1-billion in pre-sales. The landed need to be registered in Blythedale Coastal Resort’s name, and this could only be done on or after settlement of the land claim.
• 2009: Land claim process was settled.
• Blythedale Coastal Resort Pty Ltd took title and registration of the 1 000hectare piece of land, with the community being 20% shareholders in the development company.
• All negotiations approved by national and provincial government and the local community.
• R194-million paid by government to original land owner and simultaneously sold to Blythedale Coastal Resort Pty Ltd creating a R194-million loan account in the company in favour of the community. The community still retained a 20% shareholding in the development.
• 2010: With R1,1-billion in pre-sales, title granted and funding was raised noting that eLan was ready to break ground on first sites. The community decided not to sign a loan agreement which stalled development and litigation commenced.
• 2010-2013: Three-and-a-half year legal process with community litigating against certain government departments; the neighbouring farmer; Blythedale Coast Resort Pty Ltd, and CEO Mark Taylor’s Trust.
• Final Process 2014: Legal settlement negotiated and finalised, all agreements signed:
• Initial land value was Agricultural Value.
• Government paid R194-million for the land.
• Corrected valuation took the land value to R540-million with rezoning.
• Government paid out R332-million for settlement, literally the difference between the R194-million initially paid and the R540-million seen as compensation for land improvements.
• Blythedale paid all creditors. Within this, R6-million was set aside for the communities legal fees as well as R10 000 for the 687 households (about 4 000 people) in the community.
• August 2015: Back on site.
• October 2015:Re-launch nationally and internationally in Durban, Ballito, Johannesburg, London and Dubai.