Leasehold Development in South Africa: Trends, Models, and Case Studies

By Warren Brusse, Chief Executive Officer, Zebinvest Real Estate Development

If you are a landowner, traditional community trust, or municipal custodian with land assets - but unsure how to unlock value without selling out - Zebinvest is ready to partner with you.

As cities across South Africa grapple with the challenges of urban expansion, housing affordability, and sustainable development, a new model is emerging - one that redefines traditional real estate investment and development: leasehold development.

At Zebinvest Real Estate Development, we believe that leasehold is not only a smarter, more inclusive model for the future - it’s already shaping South Africa’s most visionary urban precincts. Developments like Waterfall City in Gauteng and Westown in KwaZulu-Natal are powerful case studies demonstrating how leasehold is enabling long-term value creation for landowners, developers, investors and communities.

Why Leasehold?

In contrast to freehold transactions where land is sold outright, leasehold development involves long-term land leases - typically 99 years - where the landowner retains either full or part ownership. This unlocks powerful benefits:

• Landowners retain legacy: Landowners can partner in developments without giving up ownership, creating generational value and recurring revenue.

  
  

• Affordability improves: Developers aren’t burdened with land purchase costs, enabling more affordable homes, retail, offices and public infrastructure.

  
  

• Communities benefit long-term: Leasehold allows continuous reinvestment and community stewardship by the landowner and developer over decades.

  
  

At Zebinvest, we specialise in structuring such partnerships turning underutilised land into thriving mixed-use communities without severing land ownership ties.

Waterfall City: A Leasehold Vision at Scale

Waterfall City, stretching across 2,200 hectares between Johannesburg and Pretoria, is a landmark leasehold development. The land is owned by the Waterfall Islamic Institute and developed under a 99-year renewable lease model, aligned with Islamic WAQF principles.

This structure has enabled the institute to remain a long-term custodian of the land while partnering with best-of-breed developers to realise a visionary mixed-use hub. Waterfall City is now:

• Home to over 330,000 m² of premium office space and 30+ green-rated buildings

  
  

• Designed to accommodate 80,000 residents and employ another 80,000 people

  
  

• Recognised as the world’s best mixed-use development - five times over

  
  

What makes this model so effective is the alignment of interests: the landowner retains stewardship, the developer builds and grows value, and the community receives lasting benefits through quality infrastructure, green spaces, and job creation.

Westown: Unlocking KwaZulu-Natal’s Growth Corridor

Westown, near Shongweni in KwaZulu-Natal, is another inspiring case. Here, Tongaat Hulett Developments structured a leasehold model with the Fundamentum Property Group over a vast area earmarked for mixed-use development.

Instead of selling the land, Tongaat Hulett entered into a 99-year renewable lease, unlocking R15 billion in development potential while ensuring the long-term benefits of land ownership remain intact.

Already, we’re seeing momentum:

• R594 million invested by the eThekwini Municipality into enabling infrastructure

  
  

• A mix of residential, healthcare, retail, and lifestyle amenities underway

  
  

• Commitments to sustainability and local employment forming the core of the project

  
  

Westown is proof that leasehold can be a catalyst for meaningful transformation -turning peri-urban land into connected, modern town centres while ensuring local value retention.

The Zebinvest Approach

At Zebinvest, we actively seek out strategic land partnerships that preserve ownership, reduce upfront costs, and co-create enduring urban value. Our leasehold model focuses on:

• Shared vision with landowners and communities

  
  

• Long-term revenue streams that support legacy goals

  
  

• Affordable development outcomes driven by land cost efficiencies

  
  

• Responsible urbanism that grows with the community

  
  

We believe that leasehold is not just an alternative model - it’s a superior one when aligned with visionary partners and structured with care.

A Call to Landowners, Community Stakeholders & Municipal Stakeholders

If you are a landowner, traditional community trust, or municipal custodian with land assets - but unsure how to unlock value without selling out - Zebinvest is ready to partner with you.

Together, we can reimagine urban growth. Through leasehold development, we can deliver high-impact communities that are affordable, sustainable, and generational in value.

Let’s build the future differently - together.

Warren Brusse, Chief Executive Officer, Zebinvest Real Estate Development