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The city of eThekwini has signed a memorandum of understanding to create the brick factory development at the Avoca development node, north of Durban.
The node measures about 350 hectares and has a potential capital investment of R10 billion, the city said.
“It is estimated that 23,000 jobs could be created in construction and 13,500 permanent jobs. Investec Property is committed to ensuring that all contractors during the construction phase of the development should create opportunities for local businesses whenever possible.
“This is to ensure that the development of the brick factory contributes significantly to job creation and socio-economic transformation.”
As part of the city’s strategy to create an environment conducive to investment, it said it will offer a substantial refund of fees to investors and developers.
This is part of the city’s Economic Development Incentive Policy (EDIP) that helps investment in the city that contributes to job creation, he said.
“The EDIP aims to position eThekwini as a preferred investment destination and focuses on supporting new investments based on their potential and future contribution to economic growth, spatial regeneration and job creation within the Municipal Area, in accordance with the strategic objectives of the municipality.
“In order to incentivize the development of the brick factory and to reap the anticipated socio-economic benefits resulting from the development, including increased revenue rates for the city once the development takes place, a reduction of rates for five years for each of the three phases of the full development of Brickworks. “
Investec Property said it intends to develop the site in three phases of approximately thirty hectares of developable land in each phase.
The proposed development will require an investment of more than R1 billion in infrastructure development that will take more than fifteen years to develop, he said.
This will result in significant risk for the developer, with respect to possible rate increases in the undeveloped phases of the project while the development of the first phase is underway.
“Through our partnership with Corobrik, which for over 100 years has provided eThekwini with bricks to build some of the city’s most iconic buildings, we were able to identify this unique development opportunity,” said Investec Property’s Joint CEO, David Rosmarin.
“The collaborative nature of this venture was made possible by eThekwini’s innovative establishment of the City’s ‘One Stop’ Catalytic Projects Unit along with its unique and proactive Fare Refund Policy, which aims to foster development.”
Rosmarin said that eThekwini plays an integral role in South Africa’s economy, serving as a logistics hub and main port of entry to the country.
“The development of the brick factory will further strengthen and enhance this role while stimulating regional economic development. Investec Property is proud to be a part of this unique development and we thank Mayor Cllr Mxolisi Kaunda and the city officials who helped bring this project to fruition, ”he said.
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