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It was supposed to be South Africa’s own version of Silicon Valley, with Hollywood like facilities, as well as hotel and residential accommodation and commercial buildings.
However, more than a decade on the project to create a mega development has fallen through. The 437 hectares of land is now in the hands of Galetti Corporate Real Estate which is trying to sell it via liquidation auction.
So, what happened to the initial plans to create the mega/smart city “Destiny Africa” and where did the developers go wrong?
Here Wesley Cowan, Western Cape director of corporate services for Galetti Corporate Real Estate runs us through what he thinks happened with the project that was eventually doomed to fail.
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A global tourism and business hub
It was aptly named “Destiny Africa” as it was meant to create South Africa’s first ever multi-billion rand mega/smart city development. It was first introduced in 2009 and saw the support of former Western Cape premier, Helen Zille who described it as a ‘global tourism and business hub’.
Zille told the South African media: “The Destiny Africa project will combine business, learning and leisure into a so-called smart city. Components include a top-class conference centre, a business park with an incubator, a university cluster and research centre, about 7,000 residential units, ecotourism and medical tourism facilities, retail opportunities and a waterfront. These interconnected facilities are known as an ecosphere.
“Destiny Africa is expected to contribute significantly to South Africa’s economy in the same way as California’s Silicon Valley, India’s information technology hub of Hyderabad, or Singapore. These regions have used the smart city concept to drive economic growth by attracting foreign investment as well as the world’s top specialists and entrepreneurs.”
Too much, too soon
But fast forward to 2022 South Africa’s next ‘Silicon Valley’ never materialised and the former Destiny Africa site, which is ideally situated across from the Garden Route Mall, is up for auction under a liquidation process.
Potential buyers have been invited to submit final offers by the end of September. As it’s an auction it’s not certain what the land would sell for, but one estimate is that it could be “north of R100 million”.
So, what went wrong with the Destiny Africa dream? One expert believes the problem with the plans was that it was a classic case of ‘too much, too soon’.
Cowan tells Estate Living: “What was proposed was this massive unlock of a big tract of land which would need to be developed all at once. This was going to put a big strain on the city of George and its current services to import it all there all at once.”
The other problem with keeping the project alive was the struggle to draw investors according to a report in georgeherald.com.
Ideal for large scale development
Despite the various challenges the land and the city of George still has tremendous potential for development. Cowan says the new buyer could potentially ‘do anything’ with it.
He explains: “The land is currently zoned as agricultural, but the municipality is supportive of rezoning, which would require the new owner to reapply for rights and rezoning. If rezoned, the land could be used for a multitude of different purposes – from commercial (industrial, office, retail, or hospitality) to residential.”
When asked how the next set of developers could make a success of it, Cowan is keen to emphasize that he wasn’t privy to all the information on what made Destiny Africa fail but highlights that proper planning for any big or similar idea will be the key to success.
He adds: “The city of George was keen on the expansion as it was seen as a growth node and the only real piece of land that’s privately owned that could be utilised for this type of growth. But the next purchaser needs to work with them in phases.”
An ideal location
Liquidations can often be an ideal way for developers to gain land on the ‘cheap’ and this prized land, if obtained at a discount, could reap the returns that developers and investors (large and small) so often seek if the planning and development is done correctly.
Ultimately, the purchase of land could be a win because of its ideal location and beauty. With semigration to the Garden Route under way, thanks to the work from anywhere phenomenon, developers shouldn’t have too difficult a time in drawing the crowds to the area.
“As we see more South Africans semigrating to the Garden Route, there is a growing need to cater to the business and residential needs of these new residents. This land has the space, location, and qualities for the right investor to capitalise on this demand,” says Cowan.
