eThekwini Municipality has appointed Southern Sun Hotel Interest as the Preferred Bidder for the long-term leasing and redevelopment of the Elangeni and Maharani Tower. in Durban for the next 50 years. The current lease is due to expire on December 31st, 2025.
This redevelopment will enable the municipality to realise its vision as articulated in its Inner-City Local Area Plan, which is to Protect and enhance the beachfront as a key tourism asset. This successful award is in response to the Request for Proposals (RFP) from industry issued in terms of the Municipality’s Proactive Land Release Strategy, which was issued last November, inviting a proposal for the long-term leasing and redevelopment of the said properties for a period of 50 years.
With over 50 years of expertise in the hospitality sector and an extensive collection of over 90 hotels and resorts in South Africa, Africa, Seychelles, and the Middle East, Southern Sun Hotel Interest is ideally positioned to spearhead the redevelopment and operation of these properties.
Southern Sun is a Level 1 B-BBEE South African registered company, which is 59,9% black-owned, 37.2% black women-owned, and 7,4% black youth-owned. It underscores the Municipality’s commitment to transformation and to use its property portfolio to promote economic transformation in the property sector to enable meaningful participation of Black people, including women, the youth and people with disabilities and unlock obstacles to property ownership and participation in the property market by black people and further comply with Section 25 (5) of the Constitution which places a mandatory requirement on the state to take reasonable legislative and other measures, within its available resources, to foster conditions which enable citizens to gain access to land on an equitable basis.
The redevelopment entails an estimated capital investment of approximately R1 015 billion, R622 million on the subject properties, and two hotels (Elangeni and Maharani), including 5-star elements of the overall complex.
The municipality also stated they are finalising SCM processes for the other six beachfront properties, including Joe Kools, The Deck, and the old “Funworld Site,” which have a combined capital investment value of R440 million. Further announcements will be made before the end of the 2024 calendar year.