The Chinese Shanghai Zendai Property acquired a plot of 1,600 hectares from South African company AECI explosives and chemical group in Modderfontein, a city lying in the outskirts of Johannesburg by investing R1 billion.
Acquiring this piece of land the Chinese organisation is planning to build up a “financial hub” including commercial, residential, light industrial and retail components.
Their main aim is to convert this Modderfontein property into a “New York of Africa” by investing R80 billion in the coming 15 years.
At the same time Nomvula Mokonyane from Gauteng Premier, is very confident that this deal will promote job creation and also improve the economic policy in the region.
She further said that “We are pleased that Shanghai Zendai has decided to bring their business to Gauteng and also assure the investors that the Gauteng Provincial government will provide them the support in their move to develop the business and also make the province a tourism hub.”
Investors confidence to invest in SA Commercial Property Sector is greatly increased due to this deal. Maverick who is a visionary, an art collector and also a businessman is the new billionaire in the town.
Due to some of these good qualities Dai Zhikang, the founder and chairperson of Shanghai Zendai group has decided to invest billions in developing Modderfontein, which will completely change the identity of Johannesburg.
In a recent report, Goldman Sachs said that this investment will make it one of the largest single foreign investments in South Africa. Since the past two decades South Africa has also attracted foreign direct investment of R19- billion on an average annually. The company has already completed the development of larger part of the project.
Shanghai Zendai passed a detailed notice upon this successful acquisition and said that Austerity measures, in the form of property purchase restrictions is implemented by the Chinese government in-order to slow down the increasing property prices due to which the company had to look outside of their own nation for the growth.
The posh area of 1,600 hectare owned by AECI since 1896 is basically a land with overgrown vegetation and wetlands. As it is on the Gautrain route and located between the central business district of Sandton and OR Tambo International Airport, it will be rather beneficial.
The first time limit for the transfer of the property is July 2014. From Shanghai Zendai, the payment is guaranteed from the Bank of China in South Africa and for AECI it is from Standard Bank. The company is viewing the land as the future centre of Johannesburg.
The project will put its weight mainly on the seven sectors including around 35 000 houses and 1600 hectares sports stadium.
