Rising rich list of Durban

2014-01-20 00:00

DURBAN is home to the fastest growing number of ultra high net worth individuals in the country, and we’re not talking about small fry here, but people with assets worth more than R300 million.

There are only 600 with this amount of money in South Africa, and only six percent (or 33) of them live in Durban. Most of them (48% or 285) live in Johannesburg, and 18% are in Cape Town, according to data from the New World Wealth Consultancy.

Between 2008 and 2013, the number of ultra high networth individuals in Durban increased by 43%. Comparative figures for Johannesburg and Cape Town were 24% and 10% respectively.

A survey shows that 17 of these individuals have a home in Umhlanga and nine live in La Lucia.

Gateway Shopping Centre, the establishment of many businesses around it and the degeneration of the city centre are listed by New World Wealth as reasons for their living in Umhlanga.

Durban Chamber of Commerce and Industry chief executive officer Andrew Layman believes the growth in the number of the wealthy has to do with the creation of what has been essentially a new suburb.

“High net worth individuals in days gone by would have lived in various parts of the city, perhaps, including Kloof and the Highway area or Morningside. I think the opening of Umhlanga Ridge and La Lucia extension, and the development has tended to provide a focal point for a wealthy residential settlement.

“This has been reinforced by the fact that the broad area accommodates high- level residential and office space enabling people to avoid travelling long and congested distances to work,” said Layman.

Another has been the opening of super luxury vehicle salesrooms in Umhlanga.

Ferrari dealer Vigliette Motors opened there in 2012, Daytona Motors, which sells British luxury cars such as Rolls Royce, opened in Umhlanga Ridge seven months ago, while the Porsche dealership is understood to be selling as many of the cars as are sold in Cape Town.

New World Wealth said other wealthy suburbs in Durban are Mount Edgecombe, Umdloti, Morningside and Durban North.

New World Wealth analyst Andrew Amoils said they don’t disclose the names of the wealthy individuals. But some of the names can be gleaned from other sources.

For instance, Stephen Saad, founder of Aspen Pharmacare and one of the 14 South Africans that made it into the Forbes list of the top richest people in Africa, is listed as residing in Durban.

Durban’s “teflon couple” Shauwn and S’bu Mpisane, who recently faced off fraud charges and whose company was awarded government tenders of more than R450 million, may well be wealthy enough to be classified as ultra high net worth individuals.

Other Durbanites speculated to be multi-millionaires in media reports include:

• Movie guru Anant Singh;

• Controversial property developer Jay Singh;

• Black empowerment pioneer and businessman Don Mkhwanazi;

• Cash Flo Pro founder Jabulani Ngcobo;

• Adapt IT’s founder Sbu Shabalala;

• Edison Power chairperson and businessman Vivian Reddy;

• Advertising and marketing businessman Mabeheleni Ntuli;

• Investment businessman Sandile Zungu; and

• Part-owner of Aurora Empowerment Systems, Khulubuse Zuma.

According to New World Wealth — which defines a millionaire as someone with assets of more than $1 million (around R11 million), excluding the value of the primary residence — there were 2 700 millionaires in Durban in 2013, compared with 9 000 in Cape Town and 23 400 in Johannesburg.

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