Swakop’s waterfront to get another chance

THE Swakopmund waterfront development, which ground to a halt more than a year ago because the last developer could not get financial support to complete the project, may be revived, although on a somewhat reduced scale.

The proposed new developers, Alberts Investments Number Eight from South Africa, bought over 10 erven from the Swakopmund Waterfront Property Company (SWPC) for an unknown amount. These erven, which are to the south of the existing developed area, will include commercial property, a 60-room hotel, 28 apartments and at least another 24 sectional title units.It will cost in the region of N$200 million.According to the Eckhard Siedentopf, the Windhoek architect appointed by the developer, the new development will not include a marina – a component marketed by the former developers.He said that the new development is based on a brand-new plan.”There will be no marina because it was exactly this that killed the project previously.It was too costly to be viable,” Siedentopf told The Namibian.He said that there would however be a breakwater, similar to the one at Swakopmund’s Mole, which will eventually take over the function of small-craft launching and mooring.In 2006, Basil Smit of the Desert Child Company (a shareholder of SWPC) had to throw in the towel after the banks would not support the waterfront development (which included the marina) – even after efforts to reduce the multi-million-dollar project by up to 75 per cent in order to make it more viable for major financial institutions to support.Smit however still sat with the very valuable land, worth about N$65 million.Since the N$350 million waterfront project was introduced, “red tape and hiccups” caused the project to be delayed for about a year, whereafter Smit had to reapply for financial support.The delay, as well as general escalations, caused the project value to jump by N$42 million, Smit had said.The result was that financial institutions were not interested anymore because the profit margins were getting less and the risk for the banks was increasing.The profit potential of the project was still viable, and so it was marketed.This is where Alberts Investments Number Eight came into the picture and made an offer.It is unknown what this offer was.The SWPC will remain the owner of about 35 unsold single residential erven and about nine unsold sectional title units, which formed part of its initial project.The erven that were sold will not be affected by the change of ownership, since they are privately owned.Smit said these units were sold at market-related prices – as if there was no marina – so any new developments there would only benefit the existing owners.Siedentopf told The Namibian that work could start by April next year, and is estimated for completion by the end of 2009.These erven, which are to the south of the existing developed area, will include commercial property, a 60-room hotel, 28 apartments and at least another 24 sectional title units.It will cost in the region of N$200 million.According to the Eckhard Siedentopf, the Windhoek architect appointed by the developer, the new development will not include a marina – a component marketed by the former developers.He said that the new development is based on a brand-new plan.”There will be no marina because it was exactly this that killed the project previously.It was too costly to be viable,” Siedentopf told The Namibian.He said that there would however be a breakwater, similar to the one at Swakopmund’s Mole, which will eventually take over the function of small-craft launching and mooring.In 2006, Basil Smit of the Desert Child Company (a shareholder of SWPC) had to throw in the towel after the banks would not support the waterfront development (which included the marina) – even after efforts to reduce the multi-million-dollar project by up to 75 per cent in order to make it more viable for major financial institutions to support.Smit however still sat with the very valuable land, worth about N$65 million.Since the N$350 million waterfront project was introduced, “red tape and hiccups” caused the project to be delayed for about a year, whereafter Smit had to reapply for financial support.The delay, as well as general escalations, caused the project value to jump by N$42 million, Smit had said.The result was that financial institutions were not interested anymore because the profit margins were getting less and the risk for the banks was increasing.The profit potential of the project was still viable, and so it was marketed.This is where Alberts Investments Number Eight came into the picture and made an offer.It is unknown what this offer was.The SWPC will remain the owner of about 35 unsold single residential erven and about nine unsold sectional title units, which formed part of its initial project.The erven that were sold will not be affected by the change of ownership, since they are privately owned.Smit said these units were sold at market-related prices – as if there was no marina – so any new developments there would only benefit the existing owners.Siedentopf told The Namibian that work could start by April next year, and is estimated for completion by the end of 2009.