Akani Properties, a 100% black-owned property development, management, and investment company, has won a bid to develop a R350 million hotel and conference facility in Middelburg, a growing mining and farming town in the Steve Tshwete Local Municipality in Mpumalanga.
The 150-key room hotel and 1000-seater capacity conference centre will boast all the facilities that a discerning business traveller and leisure tourist expect from a modern high-end development. The total capital expenditure will be funded through a combination of debt (20%) and equity (80%).
It is estimated that on completion, a minimum of 200 full time operational jobs will be created with the residents of the municipality receiving preference for many of these employment opportunities.
The development has been part of the municipal development plan and strategy of the STML since 2014, following hot on the heels of the launch of a R950 million OR Tambo Radisson hotel and conference precinct in Kempton Park by Akani in October last year.
“Middleburg, which has been growing steadily over the past few years – due to the mining industry and related industries – matches our investment strategy and criteria. We believe this investment will offer our investors sustainable returns in the long term while also making lasting socio-economic contributions in Middleburg” commented Zamani Letjane, Managing Director of Akani Properties.
“With the Covid-19 heath crisis negatively impacting economic activity in the short term, we see infrastructure investments – either in social or economic infrastructure assets – as one of the mitigating interventions and a sustainable way of growing peri urban economies.”
Akani’s investment strategy focusses on developing hospitality, retail, and office property assets in the secondary and peri-urban cities by creating sustainable shareholder returns, empower local companies and contribute to job creation.
The hotel will boast standard rooms to suites, conference facility, SPA, gym facilities, fully licensed restaurant, and bar, among other features.
With the growth of its economy, a need was identified for a hotel in the Middleburg area and the Municipality conducted a bidding process for the sale of its open land. This project is particularly key as it will be the first hotel of this magnitude in the area.
Akani, as the developer, has secured commitment from a renowned international hotel operator to manage and operator the precinct. The operator has significant international and local presence to market and operate the precinct on behalf of the developer.
Construction is scheduled to commence in March 2021.
Source: Propertywheel.co.za | https://propertywheel.co.za/2021/01/akani-properties-wins-bid-to-develop-a-r350m-hotel-conference-facility-in-middelburg/