The expansion of the Sibaya Precinct in KwaZulu-Natal, led by the Devmco Group, is set to transform the area with a host of new retail and commercial developments, including cutting-edge corporate headquarters, state-of-the-art medical facilities and premium flagship stores.
Devmco Group acquired all development rights from Tongaat Hulett in February, during the company’s business rescue process, solidifying their role as the master developer of the Sibaya Precinct.
The Sibaya Precinct expansion is set to boost KwaZulu-Natal’s economy by R5bn and create more than 70,000 jobs over the next five years. Since its 2016 launch, Phase 1 has delivered about 1,300 residential units and more than 20 commercial and retail spaces. With infrastructure in place, construction on key developments is scheduled to begin next year.
“There are various deals over the line; however, we can’t disclose who they are with at this stage due to the sensitive nature of them. Currently there are no confirmed deals from a hospitality perspective, but we do have various brands that we are in discussions with as well as other developers who are wanting to develop in our node that are speaking to established brands that have also expressed interest,” said.
Theunissen confirmed that the group is introducing new, previously unseen brands to KwaZulu-Natal, alongside well-established businesses that are looking to consolidate their operations in the province.
According to Theunissen, the development is a mixed-use precinct designed to seamlessly integrate office, retail, and residential spaces, ensuring all needs are met. It will offer safe, secure pedestrian movement, creating a vibrant, first-world environment in the heart of KwaZulu-Natal.
Devmco Group has already invested R6bn into the Sibaya Precinct and is committed for the long term. As the master developers, they are prepared to lead the delivery of the vision in collaboration with investors and property professionals.
To date, the precinct has generated R6bn in sales, with projected investment expected to surpass R10bn overall. The development is being rolled out in phases, with the first three already launched. By completion, in 10 to 15 years, total investment is expected to exceed R20bn, Devmco MD Schalk Theunissen said.
In terms of returns, Theunissen said: “It varies but we have seen tremendous capital appreciation across the entire node through the residential sector as well as very good returns on rental yields.” The commercial space is starting to gain traction, with a premium price due to stunning sea views, top-tier amenities, and its location in a sought-after, upscale area.
The retail scene at the Sibaya Precinct is rapidly growing, with Checkers FreshX Ocean Dune now open, adding to the area’s appeal. Other prominent tenants include Barrows Global, which recently opened its Sibaya office, alongside Bidvest Life and the 2,700m2 Innova Haus.
“We are carefully curating all the developments to make sure they don’t compete with each other. So, for instance — we are not doing retail that competes with other retail and similarly with office developments that these will be complimentary to one another,” he said
He emphasised that location within the precinct was crucial, ensuring businesses were near retail hubs and within walking distance. That was especially important as the focus was on promoting pedestrian-friendly traffic throughout the area.
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