Akani Properties wins bid to develop a R350 million hotel and conference facility in Middleburg

Akani Properties Pty Ltd (“Akani”), a 100% black-owned property development, management and investment company – even in the midst of the Covid-19 pandemic – has won a bid to develop a

R350 million hotel and conference facility in Middleburg, a growing mining and farming town in the Steve Tshwete Local Municipality (“STML”), Mpumalanga Province.

The 150 key room hotel and 1000-seater capacity conference centre will have 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%).

Once the development is complete, it is estimated that a minimum of 200 full time operational jobs will be created with the majority of employment opportunities going to the residents of the Municipality.

This development, which has been part of the municipal development plan and strategy of the STML since 2014, follows hot on the heels of a successful launch of a R950 million OR Tambo Radisson hotel and conference precinct in Kempton Park by Akani in October last year.

Zamani Letjane, the Managing Director of Akani Properties said, “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.”

“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 which Akani won successfully. 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 and the majority of the labour will be sourced locally and almost 80% of post construction employment will be sourced from the local STML population. End.

For all media queries, please contact Bomikazi Molapo at Cell: 078 801 3711 or Email: bomikazi@aphinko.co.za

Note to Editors:

About Akani Properties

Akani Properties is a 100% black-owned property development, management and investment company. The property portfolio comprises a formidable mix of prime core investments in retail, offices parks, residential, and hospitality assets. The value of managed and owned properties is in excess of R3,5 billion as at the end of February 2020

Akani’s flagship hospitality portfolio consists of the following:

• recently developed 248 key room 4-star hotel precent in Kempton Park which is managed by the Radisson Hotel Group
• A 2000-seater International Convention Centre, 1 000 m2 wellness centre (franchised through Amani SPA and Tammy Taylor), 1 400 m 2 high end themed skybar and a restaurant operated by the famous Signature restaurant under the Level 7 brand and
• Destiny lodge a 35-room lodge located in White River, Nelspruit in Mpumalanga