Firm to develop commercial property

Sugar producer Tongaat Hulett (TON, Tongaat), which turned a portion of its agricultural land to property development, is shifting its focus from residential developments to industrial, tourism and commercial sectors, it said on Monday.

"The residential property market is being affected by the prevailing
difficult economic climate," the group said in its interim results statement that showed that operating profit from land developments fell to R115m from R127m.

"The focus has shifted to specific opportunities such as retirement villages, hotel sites, logistics facilities around the new international airport at La Mercy and the industrial and affordable housing sectors," it said.

However, sales into the industrial and commercial markets were being constrained by a shortage of saleable stock and the lack of final unconditional development, despite continuing demand for property in certain areas, the company said.

Tongaat has mixed developments in Umhlanga Ridge Town Centre, Ridgeside, Zimbali, Kindlewood and Bridge. - Tiisetso Motsoeneng, I-Net Bridge

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