Robert Gumede set to invest billions into Mbombela development
A planned R5 billion development is set to transform the city's skyline and revive the town.
MBOMBELA – Guma Group have been awarded the tender to develop the land where Nelspruit Rugby Club (NRC) is situated.
The land is owned by the City of Mbombela Local Municipality.
Guma is headed by billionaire businessman, Robert Gumede. The company is set to invest between R5 and R10 billion into the development of the precinct.
Joseph Ngala, spokesman for the municipality, said it would be the “single biggest investment in Mbombela that will change the CBD of our city”.
“It has always been the council’s desire to revive and redevelop the CBD into a modern city,” he said.
It is meant to be a mixed-use development, such as Melrose Arch, where people can “live, work and play”.
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Guma further intends to build a bridge to link the development with the Mpumalanga division of the High Court, situated across the road on Samora Machel Drive.
“The injection of over R5 billion investment and the redevelopment of the CBD is a huge benefit,” Ngala said. “Jobs will be created and new ratepayers to improve the council’s coffers will be most welcomed.”
He added that it was an open tender process and that Guma’s bid was found to be the most compliant and “offered the best investment into Mbombela backed by major financial institutions”.
The 95-year-old rugby club has been leasing the land for more than 50 years. The lease has expired, so it is currently leasing on a month-to-month basis.
The rugby field, however, comprises a small part of the development. The biggest part of the property is unoccupied.
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As part of the development rights, the club will be moved to Mbombela Stadium, and the school located on the premises will also move to a suitable location.
As part of the conditions, Guma agreed to carry these costs.
The parties are expected to announce “in due course” when construction is set to start and finish.
Linda Grimbeek, chief operating officer of the Kruger Lowveld Chamber of Business and Tourism, said it was great news.
“We welcome all development,” she said. “And given that Gumede is a local resident, we trust that he would make use of local contractors and suppliers as much as possible.”
Ngala added that there are also council- approved plans to develop other CBD precincts within the municipality, including Hazyview, White River and Barberton areas, “in partnership with the private sector – just like the City of Joburg and Tshwane”.
NRC chairman, Herklaas du Preez said he will have an urgent meeting with the council about the matter and did not want to comment.
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