By Vumiso Nyamazana – Regional Head: Corporate Property Finance, Absa CIB and Annah Watkinson – Head of Global Finance: Coastal Regions, Absa CIB
Almost five decades after Sun City set the benchmark for leisure destinations in South Africa, the spotlight has shifted to KwaZulu-Natal’s North Coast. The announcement of a new Club Med resort, developed by the Collins Residential Consortium, has stirred considerable attention partly because of its scale and partly because of what it represents. With a projected construction cost of nearly R2 billion, it will be the most expensive destination-scale tourism venture in the country’s history – a marker that tells a wider story about a renewed appetite for investment in tourism infrastructure, the potential of projects of this nature to stimulate economic activity across local supply chains, and the sophistication of South Africa’s financial sector in structuring complex transactions in a sector often seen as high-risk.