Moreland, one of South Africa's premier private sector land developers, is playing a contributory role in realising the Durban/Richards Bay coastal strip's potential as one of the SADC region's leading growth corridors. Moreland is pursuing a co-ordinated growth and development strategy, which is largely underpinned by private/public partnerships, primarily with the eThekwini Council (Durban), that balances the imperatives of job creation with the need to protect and enhance the value of prime properties and environments.

Located mainly on the prime coastal strip north of Durban, which is widely acknowledged as one of the fastest growing development nodes in South Africa, Moreland's projects comprise residential, industrial, commercial and resort developments. 

Moreland is committed to the creation of the most sought-after quality of life environment in Southern Africa and benchmarks its developments to international standards. Its development process has been characterised by three successive waves: starting in 1990 with suburban residential construction, followed by industrial expansion aimed at creating employment opportunities close to residential areas and a third wave of offices, schools, hospitals, places of worship, shopping, entertainment, recreation and resorts.  

Keenly focussed on protecting, enhancing and unlocking the value of its landholdings and sustaining long-term growth in earnings and cash flow, Moreland faces the challenges of the future with confidence and enthusiasm.

Operational Review
 

Moreland posted a strong cash flow performance in 2002 and achieved an eight percent increase in revenue to R146 million in spite of the four interest rate hikes and high property rates on vacant land in Durban.

The year under review saw substantial progress towards the realisation of Moreland's vision for an exemplary quality of life environment on the prime coastal strip north of Durban bringing the total investment in this area by Moreland and its customers over the past decade to R10 billion, approximately R500 million in 2002, a large proportion in the Zimbali Coastal Resort and Mount Edgecombe Country Club Estates.  

The area also saw the construction of several new office buildings in the La Lucia Ridge Office Estate, epitomised by Unilever's magnificent national headquarters. Similarly, a number of retail buildings were commissioned in the Umhlanga Ridge New Town Centre, notably the Crescent Shopping Centre that supplements Old Mutual's 125 000 square metre R1,4 billion Gateway Theatre of Shopping complex. 

During the year land development commenced in the RiverHorse Valley Business Estate, a joint venture with the eThekwini Council straddling the N2 freeway at Effingham. Also underway is the City-led and Moreland-directed uShaka Island Marine Park at the Addington beachfront and the site for Afrisun KZN's Sibaya Casino resort at Umdloti. 
  

A Sound Foundation for Growth

Moreland's development initiatives north of Durban over the past decade are widely acknowledged as having created one of South Africa's leading property growth nodes, which has attracted both local and national blue-chip investors and developers. This has been boosted recently by interest and sales to international investors and developers. The installation of major roads and services infrastructure needed to unlock the area, and the establishment of the Moreland brand in the South African property market, have provided a sound foundation for future growth. Substantial investment has also been made in building a small, professional and competitive multi-disciplinary in-house team, supplemented by effective management of outsourced property professionals and contractors. The focus on black economic empowerment saw the proportion of total spend increase to more than 35 percent during 2002.
  

Outlook

Moreland has registered positive enquiry levels across all portfolios, particularly the RiverHorse Valley Business Estate. Exciting new residential project opportunities exist on the seaview sites at La Lucia Ridge (iLala), Umhlanga Ridge (iZinga), Umdloti and Zimbali South. There is also longer term potential to develop a further 10 000 hectares of prime land in the coastal strip between Durban and Tugela River. With anticipated reductions in interest rates and Durban property rates on development land in the year ahead, Moreland projects growth in earnings.