Objectives

The primary objective of this tender is to secure the leasing and development of 39 high-value properties, comprising 19 economic units, owned by the Eastern Cape Provincial Government. The aim is to stimulate economic growth, unlock investment opportunities, create jobs, and promote social upliftment through the development and utilization of state-owned properties. The Department seeks to transform the property sector by facilitating long-term leases (30 years with options to renew) to enable private sector development, especially encouraging participation from previously disadvantaged groups.

Scope

The scope includes:

• Leasing and development of 39 properties across various regions, including land parcels, commercial, coastal, and institutional properties.
• Properties are to be developed into various uses such as hotels, residential, mixed-use developments, educational facilities, and community services.
• Properties will be consolidated where necessary, with rezoning, subdivision, and development approvals required prior to development.
• Developers are responsible for project planning, development, financing, and municipal compliance, including rates, taxes, and municipal services during the lease period.
• Development must be completed within 30 months, with lease terms spanning 30 years, including options for renewal.

Technical Requirements

The technical requirements encompass:

• Submission of detailed project development proposals, including concept designs, project timelines, and development approach.
• Provision of a comprehensive business plan, including market analysis, financial projections, and management structure.
• Demonstration of experience in similar property development projects with property valuation exceeding R50 million.
• Provision of a Job Creation Plan and social development initiatives targeting disadvantaged groups.
• Submission of a detailed cash flow projection, development costs, and expected returns.
• Rezoning, subdivision, and obtaining all necessary planning and environmental approvals prior to development.
• Completion of development within 30 months, with ongoing municipal payments during lease term.
• Adherence to quality standards, safety, and environmental regulations.

Skills Requirements

The tender requires bidders to possess:

• Proven experience in large-scale property development and management.
• Capability to undertake comprehensive project planning, including design, construction, and financial management.
• Ability to secure funding and demonstrate financial stability, with proof of funding or credit facilities of at least R5 million.
• Expertise in rezoning, land subdivision, and compliance with municipal and environmental regulations.
• Experience in community engagement and empowerment, particularly involving previously disadvantaged groups.
• Technical expertise in property valuation, project management, and development finance.
• Capacity to deliver projects within stipulated timelines and budgets, with a track record of similar successful developments.