Durban - DEVELOPERS with deep pockets can get their hands on prime real estate on Durban’s beachfront as a large stretch of land is set to be leased by the eThekwini Municipality in the coming weeks.
Only four sites on the beachfront will be excluded as deals have already been struck on those properties, the City said.
Thapelo Mmusinyane, the head of the Real Estate unit in Durban, said the site that was previously used by Durban Funworld and other parts of the beachfront would be put out for tender in the coming weeks to attract developers.
The Funworld has closed after operating for more than 75 years.
Mmusinyane said the City had considered giving the site to uShaka Marine World to operate but the theme park had declined it on account that it did not have the capacity to operate it.
“The discussion was about the precinct as a whole, not just Funworld, from Surf Riders all the way to Blue Lagoon.
“The discussion at the time was that these leases are coming to an end, can you (Real Estate) help us take them to the market as required by law,” he said.
There was a feeling that uShaka could take over the Funworld site as part of their operations because they are operating in that space, he said.
He said a feasibility study was done and completed in February and uShaka said in terms of the outcome, they did not think it would be financially feasible to take it over.
Speaking on the future of the site, he said: “We should be going to council this month to get the council resolution to advertise the site for a period of 45 years,” he said.
The lease will be for this period because the City anticipates an intensive capital investment and this lease period will give the developers a chance to recoup their money.
He said deals have been struck for four sites already and they will bring about R200 million in investments.
DA councillor Thabani Mthethwa said Exco had not been made aware of the plan to lease out a large portion of the beachfront.
He said the area is prime real estate on the beachfront that cannot be allowed to lie dormant.
“The matter is indicative of poor planning on the side of the municipality, they knew a long time ago that the lease had come to an end and should have acted sooner.”
He said it was important that the site is kept as a family-friendly area with all the family-orientated actives.
Security of the site should also be improved because investing in activities would be meaningless if people do not feel safe there, he added.
Economist Professor Bonke Dumisa said the Durban beachfront area should be a serious rates base for the municipality.
He said any change on the site could be a catalyst for bigger and better development in the City.