White Paper: Learning from Waterfall City – How Leasehold Unlocks Land, Value and Vision

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

Foreword

At Zebinvest Real Estate Development, we believe in forward-thinking property strategies that unlock long-term value for landowners, investors, and communities alike. As we lead the way in leasehold urban development across the Western Cape, we continuously benchmark our approach against the most progressive projects in the country.

Waterfall City in Gauteng stands out as a national case study in how leasehold development, when professionally structured and vision-led, can deliver exceptional commercial, social and urban outcomes. It validates many of the principles at the heart of the Zebinvest model.

This white paper offers our perspective on the Waterfall City model - how it was structured, the lessons it offers, and why it matters as we reshape how cities grow in South Africa.

1. The Context for Leasehold in South Africa

South Africa faces a growing tension between land ownership and land use. Much of the country’s strategically located land lies under ownership that is either religious, traditional, state-held, or subject to reform processes.

In this context, leasehold development provides a powerful alternative - allowing landowners to unlock the economic potential of their land without forfeiting ownership.

Waterfall City is the most successful modern example of this model at scale. The insights it offers are directly applicable to our work in the Western Cape.

2. The Waterfall City Model: A Snapshot

• Location: Midrand, Gauteng

• Landowner: Waterfall Islamic Institute (WII), a charitable religious trust

• Development Rights: Waterfall Investment Company and Attacq Limited

• Project Size: Over 2,200 hectares of mixed-use land

• Leasehold Structure: 99-year registered leasehold agreements

  
  

The development has attracted over R20 billion in private investment, becoming a landmark destination for corporates, retailers, homeowners and logistics operators. This was achieved without the land ever being sold.

3. What Makes Waterfall City Work

a) A Legally Secure Leasehold Structure

The leases are long-term (99 years), registered in the Deeds Office, and fully mortgageable. This offers investors and homeowners security of tenure equivalent to freehold, while the landowner retains strategic control.

b) Master Planning with Control

By retaining ownership, the developer could phase infrastructure, enforce architectural standards, and control land use. This coherence is often lost in freehold developments.

c) Financial Innovation

Commercial banks support both developer and end-user financing. They treat the leasehold rights and improvements on them as legitimate collateral.

d) Market Education

Through consistent messaging, developers overcame early market hesitation. Waterfall now proves that leasehold does not diminish value, it unlocks it.

4. Lessons We Apply at Zebinvest

At Zebinvest, we specialise in structuring leasehold developments with private landowners across the Western Cape - whether in urban infill locations or regional growth nodes. Here’s how Waterfall influences our approach:

1. Structure is Everything

We ensure every leasehold agreement is designed to offer full legal protection and capital certainty to all parties. Registration, transferability, and transparency are non-negotiable.

2. Landowners Deserve Retained Benefit

We enable landowners to remain vested in the success of their land. Instead of a once-off sale, they benefit from recurring income and long-term asset appreciation.

3. Development Vision Needs Control

Our leasehold model allows us to plan precincts with long-term coherence—ensuring public space, infrastructure, and community amenities are preserved and maintained.

4. Investors Want Clarity

We educate institutional and individual investors on the strength of leasehold. Just like Waterfall, we ensure that our projects meet the bankability and resale standards required by the market.

5. What This Means for the Western Cape

The Western Cape is ripe for a new era of structured urban growth. Through leasehold:

• Strategic land can be unlocked without alienation

• Long-term planning can be enforced

• Inclusive development can be achieved

  
  

Our team at Zebinvest is actively applying these principles in projects across the Western Cape . From small-scale mixed-use nodes to full precinct developments, we’re leveraging the Waterfall blueprint - adapted for the Western Cape’s unique social, legal, and land contexts.

6. A Final Word

“The single biggest lesson from Waterfall City is that ownership isn’t a prerequisite for control or value creation. Leasehold works—if you structure it right.”

— John Webber, Director of Real Estate, Cliffe Dekker Hofmeyr

At Zebinvest, we agree. Leasehold development - done correctly - offers a way to reimagine the property sector. It creates alignment between landowners, developers, financiers, and communities. It allows us to plan for generations, not just projects.

Waterfall City proves that this model works. We are proud to be championing its adaptation and evolution in the Western Cape.

About Zebinvest

Zebinvest Real Estate Development is a forward-focused property firm that specialises in leasehold real estate projects across the Western Cape, South Africa.

We partner with landowners to unlock long-term value without selling land, and with investors who understand the value of vision-led urban growth.

For partnerships, investment opportunities, or to make your land available for leasehold development, please contact us.

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

www.zebinvest.co.za

Zebinvest – Where Land Meets Legacy