Reimagining Urban Growth Through Leasehold Development

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

Zebinvest believes South Africa’s urban future will not be built solely on ownership - but on partnerships, innovation, and long-term stewardship. Leasehold development is not just a trend; it’s a transformation.

As South Africa continues to urbanise at pace, we find ourselves at a critical juncture in the property development landscape. Land is increasingly scarce, infrastructure demands are rising, and affordability is a growing concern. At Zebinvest Real Estate Development, we believe that leasehold development - long overlooked in favour of traditional freehold models - holds the key to unlocking inclusive, future-fit urban expansion.

Through pioneering examples like Waterfall City in Gauteng and Westown in KwaZulu-Natal, we are witnessing how leasehold development can reshape our cities and empower communities, while preserving landowner interests and ensuring long-term sustainability.

What Is Leasehold Development - And Why Does It Matter?

Leasehold development is a model where land remains under the ownership of a custodian - be it a private trust, traditional authority, or corporate landowner - and is leased to a developer or end user for an extended period, typically 99 years. This model reduces the upfront capital costs for development, making real estate more affordable and accessible to a broader population.

From a developer's perspective, it allows for long-term partnership and stewardship, aligning our investment incentives with the long-term success of the communities we serve.

Case Study 1: Waterfall City – Urban Innovation on Leasehold Land

Waterfall City stands as South Africa’s largest and most successful mixed-use development. Uniquely, the land is held in trust by the Waterfall Islamic Institute, governed under Waqf law, which prohibits the sale of land. This posed a legal barrier to traditional freehold sales but also gave rise to innovation.

The development team introduced a rolling 99-year leasehold structure each time a property is sold, the lease resets to 99 years. This provided the long-term security needed for homeowners and commercial tenants alike, while aligning with Islamic legal frameworks.

Today, Waterfall City is home to corporate giants like PwC and Accenture, and boasts over R100 billion in developed value. Beyond commercial success, the city is a model for green, smart infrastructure, featuring solar energy systems, water recycling, and cutting-edge digital management tools.

The model works - and works well.

Case Study 2: Westown – Unlocking Land Without Selling It

In KwaZulu-Natal, the Westown development represents a new kind of partnership between landowners and developers. Here, Tongaat Hulett has retained ownership of the land while awarding long-term leasehold rights to the Fundamentum Property Group to develop a regional urban node.

This has paved the way for a R30 billion+ investment plan, including over 2,800 residential units, hospitals, industrial parks, and retail centres. Fundamentum’s leasehold rights allow them to plan, fund, and manage the development without ever needing to purchase the land outright. Meanwhile, Tongaat Hulett retains long-term land value and upside.

This is a prime example of how leasehold can unlock development-ready land in areas constrained by capital or legal limitations, without sacrificing control or community benefit.

Leasehold Development: A Win-Win-Win

At Zebinvest, we champion leasehold for one simple reason: it creates shared value.

• For landowners, it retains long-term control and future income potential.

  
  

• For developers, it lowers the entry cost and de-risks large-scale investment.

  
  

• For end-users, it brings real estate within financial reach and ensures long-term community reinvestment.

  
  

In a country with deep land inequalities and growing urbanisation, this model also supports land transformation without alienation, a critical point for many traditional communities and trusts.

Looking Ahead: Leasehold is the Future of Inclusive Growth

As we scale Zebinvest’s projects across the Western Cape and beyond, we are embedding leasehold at the heart of our development strategy. This is not just a financial model - it is a philosophy of sustainable growth, one that empowers communities, preserves generational land wealth, and allows us to reinvest continuously in the places we help build.

We believe South Africa’s urban future will not be built solely on ownership - but on partnerships, innovation, and long-term stewardship. Leasehold development is not just a trend; it’s a transformation.

Warren Brusse, Chief Executive Officer, Zebinvest Real Estate Development