Gauteng government gives R80-billion Modderfontein property investment deal the thumbs-up

06 November 2013

The recently-announced multi-billion rand property development in Modderfontein, east of Johannesburg, will go a long way in spurring job creation in the province.

Chemicals group, AECI, announced on Tuesday that it had sold 1 600 hectares of its Heartland property in Modderfontein to Hong Kong-listed Shanghai Zendai, a Chinese property firm with projects in northern China. AECI will keep control of the Modderfontein Reserve, which was not part of the deal.

The property was bought for around R1-billion and is located near Sandton and the OR Tambo International Airport. It is also on the expected extension route of the Gautrain.

The Chinese firm has committed to pumping in some R80-billion over a 10-15 year period in order to turn the area into a business and tourism hub that will rival top cities around the world.

"We are extremely excited by the news of this investment, which has been long in the making. We believe this is a definite sign that we are doing something right in Gauteng; something that investors like Shanghai Zendai appreciate," Gauteng Premier, Nomvula Mokonyane said.

Mokonyane said the property development, which would be mixed use is expected to include residential, commercial and retail development, is a vote of confidence in the Gauteng City-Region.

The Gauteng Premier said the expected job creation - estimated to be tens of thousands - will help reduce unemployment and enhance economic activity in Gauteng.

"We are thankful that Shanghai Zendai chose to bring its business to Gauteng and assure the investors that we, as the Gauteng Provincial Government, will continue to work with them to ensure that their vision of building a major business and tourism hub becomes a reality," said Mokonyane.

Statement issued by Gauteng Premier Nomvula Mokonyane's spokesperson Thebe Mohatle, November 6 2013

Click here to sign up to receive our free daily headline email newsletter