FirstRand Completes Pioneering Shariah Compliant Deal For Major South African Property Development

Source: Supplied. Preggie Pillay, chief executive officer for Commercial Property Finance at FNB.

Positioned on a prime beachfront site, the R3bn development will offer a mix of luxury freehold stands, apartments, duplexes and villas. Prices range from R8m to R25m, with generous erf and unit sizes.

Civil and earthworks are already underway, with the first phase of the estate expected to be completed and transferred from the third quarter of 2026.

Preggie Pillay, chief executive officer of FNB Commercial Property Finance says, “We are proud to be part of this development which demonstrates FNB’s ongoing commitment to investing in local communities and promoting sustainable development across South Africa.

“This is the first Shari’ah compliant residential development funding deal to be concluded within the FirstRand group, which demonstrates our continued innovation and appetite for lending to meet customer needs and to further contribute to boosting economic activities."

Luxury meets sustainability

The project forms part of a broader vision to bring further development in the area and is expected to enhance local property values, improve living conditions and stimulate meaningful economic activity.

With a focus on long‑term sustainability, the development incorporates modern infrastructure, improved public spaces, and excellent access to essential amenities such as the airport, major shopping centres and malls. The development is set to redefine modern living and further position the city as a premier investment destination.

The estate features a 9-hole, 18-tee golf course that connects with the Beachwood Mangrove Nature Reserve, offering residents a luxurious and tranquil living experience with high-end security. Amenities include wellness and health centres, while the estate also boasts 8km of walkways and paths, a restaurant, function spaces, co-working spaces, a garden centre, an indoor pool, a braai area, and direct beach access.

Investment fuels growth

Gavin Strydom, a director of Beachwood Investments says, “The loan is intended to facilitate development and improvements within the estate, contributing to its growth and sustainability. Moreover, it will be utilised for various purposes including infrastructure upgrades, top structure development, and community initiatives within the Beachwood Coastal Estate.

"FNB’s investment reflects the confidence in the estate’s potential, economic activities in Durban and commitment to supporting projects in KwaZulu Natal.”

“This development will see the degraded and underutilised golf course transformed into a rehabilitated space that will increase public safety, improve the environment, as well as generate much-needed jobs and economic stimulus. Beachwood Investments will create approximately 800 temporary jobs during construction and 1,500 permanent jobs post construction.

"Once all the construction phases are complete, this R3bn Beachwood Coastal Estate will contribute approximately R100m per annum towards increased property rates to the eThekwini Municipality,” adds Strydom.

Set on Durban North’s most magnificent stretch of coastline, Beachwood Coastal Estate offers a once-in-a-lifetime opportunity to live with the ocean on one’s doorstep, seamlessly intertwined with the area’s natural wonders, while prioritising the preservation of environmental assets within the precinct.