New ‘High Street’ Lifestyle District Unveiled with R15bn Westown Project

Over R2 billion from the private sector has been invested in the Westown mega-development in Shongweni, located on the N3 corridor between Durban and Pietermaritzburg. The largest portion of this funding is allocated to a new R1.4 billion retail and lifestyle district called Westown Square.

This information was conveyed by Carlos Correia, CEO of Fundamentum Property Group, the driving force behind the R15 billion Westown project. He spoke with Moneyweb ahead of the public unveiling of the first phase this Thursday (27 March).

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

Westown Square features the 48,000 m² ‘retail core’ of the development, offering ‘high street’ shopping, major retailers such as Checkers, Pick n Pay, Mr Price, Edgars, and a variety of dining options. It serves as the key element of the most extensive property project of its kind in KZN since the inception of Umhlanga Ridge New Town Centre (near Old Mutual’s Gateway Theatre of Shopping) in the early 2000s.

Like Umhlanga Ridge – which was also built on former Tongaat Hulett sugarcane land – Westown aims to be a new mixed-use town center that includes retail and commercial spaces, residential units, logistics parks, car dealerships, and community facilities such as a hospital and schools.

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

“Westown Square is not just another shopping center; it’s a lifestyle destination that merges shopping with a high-street retail experience,” Correia remarked to Moneyweb following an impressive VIP launch event last week celebrating the completion of the first phase.

“We are bringing something innovative to the market that is in harmony with the local area. It will be a lifestyle experience, with a significant portion of the center designed as an open-air space,” he added.

Correia, whose partners in the Westown initiative include local tech entrepreneurs Sean and Donovan Bergsma, invited executives from competing developers such as Flanagan & Gerard, Atterbury, Devmco Group, and Oceans Umhlanga’s Vivian Reddy to the launch event. Dignitaries from the Public Investment Corporation, along with directors from Fundamentum and officials from eThekwini Municipality, were also present.

During the event, Sean Bergsma highlighted the beneficial impact the overall Westown development will have on the local community, stressing it will create a lasting effect beyond just job opportunities.

“This project has been in development for several years and signifies 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 expressed.

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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 feasible without its support through grant funding for essential infrastructure.

Bulk infrastructure 

Fundamentum has been fortunate; the eThekwini Municipality is investing around R600 million in infrastructure upgrades in the region.

In comparison, when Tongaat Hulett initiated the Umhlanga Ridge project and, more recently, Ridgeside (prior to its accounting scandals and financial struggles), it received minimal infrastructure support from the city, similar to Attacq’s Waterfall City projects.

“The support from eThekwini exemplifies how public-private partnerships can be successful, demonstrating that government and the private sector can collaborate effectively,” Bergsma commented.

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

“Tongaat Hulett is also our partner in this venture [Fundamentum holds a long-term lease on the land] and took considerable risks, but this project represents a strong coalition among local investors,” he noted.

“We are excited to look into 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 in addition to the eThekwini Municipality’s R600 million support for infrastructure related to the Westown project, Fundamentum has already invested over R2 billion in the initial phase.

This funding includes R1.4 billion allocated for Westown Square and around R500 million for associated infrastructure, such as the upgrades to the Kassier Road/M13 bridge leading from the N3 national highway.

“In the next two years, we anticipate an additional R2 billion in private sector investment in Westown. This will cover a new R580 million private hospital, Balwin Properties’ forthcoming Shongweni Eco Park apartment complex, and a new car showroom,” he noted.

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 vital catalytic project for the metro in the Shongweni area, located to the west of the city.

“This landmark site, opening to the public on 27 March, is expected to transform retail, dining, and entertainment options in the area, thus reinforcing Durban’s position as a premier tourism destination. The project will stimulate growth along the N3 corridor from Durban to Pietermaritzburg. It represents our equivalent to Midrand,” he said.

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