Drum Rock

3 Bateleur Avenue | Drum Rock | Mbombela | Mpumalanga | 1201

Private Tender


25 AUGUST 2023
Click To Purchase

Investment highlights

  • 5.2Ha development site in Mbombela, the gateway to Mpumalanga and The Kruger National Park

  • Prime Residential development opportunity in the heart of Drum Rock Estate

  • Possible Hotel development site

  • No Bulk Services Contributions payable

  • Priced to sell



Mbombela (Nelspruit) is the capital of Mpumalanga Province. It lies on the Maputo Corridor, a major trade route linking Gauteng with Maputo, a large port and the capital of Mozambique. The N4 toll route is the main arterial route, with a double-lane highway linking it to Pretoria and Johannesburg. The city is located near two airports - Nelspruit Airport and Kruger-Mpumalanga International Airport.

Mbombela is also a major stopover point for tourists travelling from Gauteng to the Kruger National Park and Mozambique. A significant number of residents from Mozambique and eSwatini also travel to Mbombela for their monthly shopping, and numerous vehicles are exported from Mbombela to neighbouring countries.

The subject property is located approximately 5 km north of the CBD of Mbombela (Nelspruit), just off the R40 Provincial Road linking Mbombela and White River. The immediate surrounding area has seen substantial residential development over the past decade as the Drum Rock residential suburb has matured. The property lies in close proximity to the popular Riverside Mall and Riverside Park,  and the major commercial and retail node that has developed around it, including the Mpumalanga Legislature, Emnotweni Sun Hotel and Casino, and various office parks, large retail outlets and showrooms.

The University of Mpumalanga (UMP), Mbombela Campus, is located approximately 5 km from the property. UMP was established to provide a relevant, engaged and sustainable learning and teaching environment of outstanding academic excellence to match the skills and economic needs of the Province and its people. As of 2020, the University offered 48 qualifications to a total of 7,100 students.


The site was previously the location of the Drum Rock Hotel. When the hotel operation came to an end, the buildings were converted to office accommodation for use by the Mpumalanga Department of Agriculture, Conservation, and Environment, which lease ended in 2008. The property was sold in late 2009, with the intention to redevelop the site into an A-grade four-storey office complex accommodating various office blocks and utilising the full allowable bulk. This redevelopment never materialised as a result of market conditions. The current zoning of the property is Special with the primary uses being Hotel, Offices and Any other uses which may be approved by the municipality; permissible bulk of 52 785 sqm, coverage of 80% and height restrictions to 4 storeys.

In approximately 2015 an application was submitted to council for high density residential rights and the necessary studies to support Residential 4 zoning with a density of approximately 118 units per hectare (612 units) were obtained. Electrical capacity would have resulted in a density of 108 units per hectare (568 Units) being feasible. This density was not supported by council, but they did verbally confirm that a density of 35 units per hectare would be supported. They further qualified this to a maximum of 173 dwelling units which equates to a density of 33 units per hectare. One would need to formalise a rezoning application if you wanted to proceed to develop with this density.

The Drum Rock Estate is a residential node and there is no need for additional offices in the area. A buyer is likely to look to develop additional residential units or possibly a hotel given the prime position and excellent views from the site.

Fully serviced Residential 1 erven in Drum Rock Estate are marketed at between R500 000 and R1 million. Completed homes in Drum Rock Estate are marketed from R2 million to close to R5 million.

The property has good access and visibility from the R40. Access is off the R40 regional road and onto Drum Rock Boulevard, a 30m public road. The R40 between Mbombela and White River has been identified as a BRT (Bus Rapid Transport) route.

The site is hexagonal in shape with part of the erf having a northerly slope from the centre of the erf and part having a southerly slope. Foundation conditions are considered generally favourable although the site does have many rocky outcrops which is typical of the area.

The site is linked to existing bulk services that form part of the Drum Rock Estate, which services are the responsibility of the Mbombela Local Municipality. Access to the site is directly from Drum Rock Boulevard off the R40. The Mbombela local municipality has previously stated that the developer would not be liable for bulk services contributions as a reduced zoning would in effect be a ‘de-zoning’ of the land.

Electrical capacity is at a maximum of 1.3 MVA.

A comprehensive file containing all details to the previous rezoning application and related studies can be scrutinised as part of your Due Diligence on signature of the NDA that can be downloaded on our website.


Zoning and Title Deed Information

Title Deed Number: T14292/2009

Legal Description: Erf 206 Drum Rock

Registered Owner: Xcluspan (Pty) Ltd

Local Authority: The City of Mbombela

Extent: 5.2785 hectares

Zoning: Special

Primary Uses: Hotel, Offices and Related Uses

Height Restriction: 4 Storeys

Coverage: 80% (42,228m²)

F.A.R.: 1.0 (52,785m² permissible bulk)

Parking: 3 Bays per 100m² office area.  1 Bay per hotel suite.  6 Bays per 100m² public area (hotel)

Building Lines: 0 metres from street boundary and 2 metres from all other boundaries

Forecasted monthly rates and taxes expense


May 2023
Rates and Taxes   R3,176.83


VAT is payable.

Sales process

This property is being sold by way of a Private Tender process under a Sole Mandate with SAPX.

Interested parties will have access to the Property Brochure and NDA on registration on the SAPX website.

Should you wish to conduct a full Due Diligence on the property with a view of submitting an offer, you will be required to sign an NDA, register on ClicktoPurchase (CTP) and provide proof of funds or comfort from a financial institution that they would favourably consider an application from yourself for funding for the property in question. Please contact either Lance or PJ to discuss this requirement as it may not be necessary if you are known to our company or the Sellers. 

FICA and KYC verification will be required on submission of an offer.

On successful review of your registration you will be granted access to the CTP data room. Besides all DD documentation, you will have access to the sale agreement which will not be conditional upon Due Diligence or Finance Approval, other than in exceptional circumstances.

The above process is followed primarily to ensure that only willing and able purchasers are involved in the final stage of bidding for the property.

Interested party/ies are required to submit their binding offer by no later than 25 August 2023.

The Seller reserves the right to accept any offer prior to the deadline date but undertakes to instruct the Agent to inform all interested parties that there is an offer under consideration at least 10 business days prior to acceptance of that offer.

The agent will present all offers to the Sellers, who will select the successful offer within 15 business days of the deadline date of 25 August 2023.

The agent will communicate same to the winning party and inform all other parties that have not been successful.

Offers will be assessed on, amongst others, the following criteria:

    - The price offered

    - Ability to perform and provision of comfort letter or proof of funds for the transaction in question

    - Conditionality of the offer and timeline to conclude the deal

Should you have any queries regarding the process please contact either Lara or Kedibone.

SAPX is uniquely positioned to offer market-leading online sales and technology to deliver the highest quality property sales service for commercial property investments. We utilise clicktopurchase® (CTP) and the clicktopurchase® (CTP) Blockchain to provide an immutable and totally transparent audit trail in relation to the process of buying and selling property.  CTP uses hash and encryption technology as part of the creation of the transactional audit trail; this is then recorded in the CTP Blockchain.  Since all events are held in Blockchain, absolute proof of actions are held in a tamper-proof manner. The level of corporate governance and trust provided, for both buyers and sellers, is unavailable elsewhere.

Lara Joffe 076 800 0778 lara@thepropertypact.com

Kedibone Bolofo 083 988 1740 kedi@thepropertypact.com


Contact Us

Lance Chalwin-Milton lance@thepropertypact.com  +27 (0) 83 255 9275
PJ Muller pj@thepropertypact.com +27 (0) 82 888 0828





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