The R430m Dreamworld film studio development at Faure near Cape Town will give the property market in surrounding areas a shot in the arm.
So says Marius Pretorius, principal of the ERA real estate franchise in Strand, who notes that all environmental, legal and financial arrangements for the venture have been completed and that civil works for the project are now under way.
"The development is very good news for the property market in the area, as additional wealth will be injected into the economies of the Strand and other towns nearby and that will ultimately increase demand," he says.
An recent economic impact assessment by the Cape Film Commission shows that the film industry in South Africa has a direct annual turnover of some R2,65bn and has injected an indirect amount of some R3,5bn into the economy in the past year through the multiplier effect. The study also found that the Dreamworld project would further drive regional growth in the Western Cape.
"And Robert Emslie, the executive director of Absa which is helping to finance Dreamworld, has been quoted as saying that the film industry has great potential to contribute towards the financial growth of South Africa and more specifically to the Western Cape with its diversity of landscape, people and excellent locations."
Completion of the Dreamword complex is scheduled for 2010. In addition to the world class studio designed to meet local and international film production needs, later components of the overall project include residential, industrial and commercial development.
Backing the project is an international consortium headed by the Cape Town Film Studios under chairperson Anant Singh. Government and the Western Cape provincial authority are among the shareholders while the City of Cape Town is contributing towards the bulk infrastructure.
Pretorius says that inevitably, demand for goods and services in the immediate area will be stimulated as the project progresses, and suppliers will move in to nearby centres, stimulating their property markets.
"And later, the screening of the studio's films worldwide will promote the area internationally, which could boost tourism and also lead to more interest in local properties that are world class and still exceptionally inexpensive in hard currency terms."
Issued by ERA South Africa