MISSION HOLDING GROUP: Growing Community in Lush Kidd’s Beach

In the Eastern Cape, nestled between the Mlele and Mkhansi rivers, a new mixed-use development is emerging from old farmland. In Kidd’s Beach, a quiet coastal resort town, a revolution is happening that is set to change the region, attracting people and business to the area.

Meaningful property development in South Africa is mostly centred around the country’s major commercial hubs – for obvious reasons – but Tjaart Van der Walt, CEO at Mission Holding Group (MHG) is driving a new type of project, building high-quality new homes for different income groups, sharing amenities, and handling everything through a vertically integrated supply chain.

Van der Walt is the son of a fisherman and an Eastern Cape native who spent his youth travelling the region fishing the local rivers. He moved North to develop his career as a mining engineering, designing some of the country’s most important mines for Sasol and  the town of Secunda in Mpumalanga.

MHG purchased 340 hectares of unused farmland, right by the sandy Kidd’s Beach, in 2007 and went about bringing to life a R10 billion dream of development in the region. The journey began slowly, taking seven years to rezone and prepare the land for construction. But now, this is a development fully underway, with 600 of the proposed 5500 homes already sold and occupied, and much optimism and ambition driving the vision.

“I am proud with the way this is working out and I am looking forward to rolling it out over the next few years,” smiles Van der Walt. “There’s probably another seven to 10 years to roll out the full 5500, which could even grow to 7000 if we can get a higher-density product that can fit into the environment. People of the Eastern Cape love nature and every house on this development has a sea view. There is a 1.5km beach front and it is very special that all houses, including the affordable homes, have sea views and are walking distance from the beach.”

DEVELOPMENT FOR ALL

Kidd’s Beach will have a product for everyone, from first time buyers to investors and high-net-worth individuals. Shopping, entertainment, education and healthcare facilities are all either underway or in the pipeline. Positioning multiple income groups across one site is a unique concept for South Africa, but Van der Walt says that it has been hugely successful to date.

“On the first five farms, there are around 2650 residential units from affordable at R750-800,000 to R5-10 million, and then there is the golden mile along the beach which is yet to open where we expect units to go for R10-20 million.

“We have the units for people to fulfil their aspirations of moving up the property ladder – we see that happening. The architectural design and features are similar for the smaller houses through to the big units. On other estates in the country, you would not have the range of property that includes such a diverse spread of income groups.

“99% of our buyers are black. The average age of our buyer is 32, and the majority are first time homeowners, specifically in the affordable range between R750,000 and 1.2 million. When you get above R1.8 million, it’s usually departmental heads or teachers or those in government. Above R5 million tends to be Directors, CEOs and senior business leaders. The levy structure and amenities are more upmarket.”

This development solves a longstanding commuter problem in the region with many travelling into East London or Bisho to work, but residing in small towns or villages hours away from these hubs.

“We have taken the residential and amenities and made them all part of a mixed-use development estate. With all the amenities come job and business opportunities and people can live and work on the estate,” explains Van der Walt.

“We have 600 houses already sold and occupied and we have 180 presales being built right now. More than 65% of the buyers and residents work in Bisho for other government departments. We are achieving what we set out to, and we are moving our focus to Mercedes-Benz SA who manufacture mostly for the export market but where the factory is only 18km from us. A lot of suppliers to MBSA, as well as renewable energy manufacturers, are based in that Industrial Development Zone.”

REGIONAL IMPORTANCE

The East London Industrial Development Zone is close to the country’s only river port, on the doorstep of the airport, and right by the N2 and N6. In November, R3.4 billion was injected to the IDZ to boost economic recovery and grow the automotive industry in the region. MBSA recently started production and export of its new generation C-Class model after a R10 billion investment in 2018. Employees here are perfect prospects for the future rollout of Kidd’s Beach.

“It is about addressing the housing need in South Africa while providing a space where people can work, play and live. Specifically in the Eastern Cape, people have come to me and said thank you for the work we are doing to develop the area,” says Van der Walt.

Currently, the site is open and first residents have moved in. The land is split into different zones including Umlele Heights, Umlele Hills, Umlele Springs, Impangele, The Village, and there are further adjacent sites which are currently being planned. Each zone has a secure entrance and has access to the primary private school and the new secondary private school which will open in January 2022.

To ensure all relevant amenities are on site, and create an entire community eco-system around Kidd’s Beach, a hospital, hotel, gym, and more will come in the future.

“The shopping centre is walking distance for all, and all the stores are there. There are around 20 stores so far and MHG is a shareholder in the shopping centre which now has also a Debonairs Pizza that has recently opened.

“In 2022, we are working on a private hospital. We have the license and we have finalised the rezoning. We are talking to different operators and looking at a 100-bed private hospital, with three theatres and all the associated amenities.

“Thereafter we will look at a hotel and conference centre which has been pushed out as a result of the pandemic. We have had a number of people enquiring about this for as soon as tourism is back online,” details Van der Walt.

Kidd’s Beach is the start of the Wild Coast and there are a lot of malaria free private game reserves in the area which are home to the Big 5. For visitors to the region, this new development provides an anchor point to explore the region which has so much to offer. Just 15km from the airport, Kidd’s Beach makes for a location where travellers don’t have to go into East London city centre. “We considered all of these factors when completing the urban design, including proximity to Bisho where there is no real housing development. The government office there has around 130,000 people working across different sites but who all live in East London and have to travel 67km to get there – Kidd’s Beach is much closer,” says Van der Walt.

VERTICALLY INTEGRATED

While many companies are experienced with new development projects in South Africa, this project requires a local feel and a set of minds that understand the area. MHG is the perfect developer thanks to its vertical integration. From organising the rezoning of the land, through construction and civils, and to estate agency and bond applications, Van der Walt has always wanted to provide a one stop shop.

“Under the Mission Holdings Group, we have a number of different subsidiaries for different activities.

“MHG Building is our inhouse construction company and that has two divisions which handles construction and civils. All sub-contractors come from our area and that is a commitment to an area where unemployment remains high. We have trained up a number of people and we are assisting SMMEs with registrations, paperwork, and health and safety management.

“We have MHG Properties which is our own estate agency. We have several agents selling, and we have rental agents managing 140 units for our investors. We also handle inhouse bond origination where we are linked with all the banks.”

A strong financial position and a healthy pipeline have reinforced strong relationships between MHG and the country’s big banks.  

“Nedbank Affordable Housing Division is financing the civils and building contracts and they were sceptical when I approached them for financing. When I launched the first phase of 180 units, they gave me five years to complete and establish the address as they were concerned about who would buy in this area. Within nine months, we had sold all 180 units from plan. Within 18 months, we had built 180 and from there we started rolling,” says Van der Walt.

“The secondary private school opens in January and that is subsidised by Old Mutal PIC School Fund to keep the monthly subscription fees for the school low,” he adds.

MHG Financial Services is also a partner of Momentum, providing a range of insurance products, financial advice, and general financial well-being.

ROLLING OUT

In the future, MHG has a lot to do at Kidd’s Beach, but the company is looking for opportunities to continue its important work.

“We have branched out along the southern coast,” says Van der Walt. On the other side of East London, MHG is undertaking development of the Balugha River Estate, a private gated estate on the beach and river. This secure and environmentally conscious development provides amazing family homes or holiday rentals. There is also opportunity to buy plots and design house spec alongside the developer to achieve something truly unique.

At Kidd’s Beach, much of the time-consuming work is now complete and things are exciting for Van der Walt and team.

“The was completed in September 2020. We drilled 14 boreholes to supply 500 houses, the shopping centre, and school from three boreholes, completing the water purification and pressurisation ourselves. This was a real challenge with Eskom and loadshedding. If we had to rely solely on the municipality, the development would not have happened. We have gained momentum and raised taxes for the municipality and they see the value of the development with many of their employees living at Kidd’s Beach. It is a new super suburb of East London and there is nothing else like it in the Eastern Cape,” he says.

“Now we have the product, it’s a question of rolling that out.”

This development is vitally important for the region and acts as an example to follow for future projects, not just in the Eastern Cape, but around South Africa. investing properly in everything required for a thriving community, MHG has stuck to a strategy and is achieving its vision.

“My aim is to provide quality housing and amenities,” states Van der Walt. “At Kidd’s Beach, people can be born in the hospital, grow up in the area, work close by, buy quality homes, and live their life in the shopping centres, gyms and other amenities. The only thing we haven’t decided on is where the cemetery will go,” he concludes.