Sun International, the JSE-listed gaming, casino and hotel group, through Carnival City Casino in partnership with LivRES Property Developers, has launched a R2.5bn mixed-use lifestyle estate, directly adjoining the casino precinct in Ekurhuleni.
On completion, the R2.5bn lifestyle estate will comprise 3,000 apartments and free-standing homes across five villages, a small office component, a private primary and secondary school, a central park area as well as a 10,000m2 neighbourhood market and village-style retail centre.
Sun International CEO Anthony Leeming told Business Day that the group views the development as an opportunity to realise value out of an idle asset.
The group expects to achieve R200m-R300m for its land equity stake.
“We are not putting money into the project — land is our equity stake, and there is no risk to shareholders should the equity make a loss, and we are not moving into the residential space either,” said Leeming.
He said Sun International bought the land more than 20 years ago as it was well located for a casino. It was larger than needed, and over the years the group considered various options for the 50ha of vacant land, including disposal.
The R1bn Carnival City Casino and entertainment precinct, which covers 30ha, opened in November 2000 and became the premier destination in the region, attracting greater development to the surrounding area. This includes a Road Lodge which was built by the City Lodge Group. Sun International added the four-star Carnival City hotel in 2007, said Leeming.
In front of the property, there is vacant land which the group could potentially look to develop if a viable opportunity arises, he said.
The phased development could take five to 10 years depending on demand, with the construction of the 30 affordable one-and two-bedroom apartments at East Village expected to start in April 2024. Occupation is scheduled for December that year.
Carnival City GM Annemie Turk said Carnival City has been a catalyst for development in the area, and in recent years, there has been an increased demand for mixed-use properties.
“This demand, backed up by our research, indicates that the area will benefit from this type of project hence we partnered with LivRES Property Developers,” said Turk.
According to LivRES developer Alan Dinnie, this is probably the biggest mixed-use development of this scale seen in the past 10 years in the area.
“Phase one will create about 1,500 jobs, and overall, we expect the development to create more than 10,000 jobs,” said Dinnie.
LivRES has completed more than 7,000 residential homes and apartments in the East Rand, Craighall Park, Rivonia, Rosebank, Sunninghill and Tshwane, among other areas.
Unit sizes range from 39m2 to 72m2 and will be priced from R499,999 to R1.215m. First-time buyers can access government subsidies when buying into this development.
Other amenities include Wi-Fi facilities, co-working spaces, children’s play areas, a resort-style pool and clubhouse, a meditation garden and braai areas.
The pet-friendly buildings will have energy and water-saving features and will also be equipped with solar and generator backup to future-proof the development against energy supply interruptions.
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