FNB funds R800m for R3.5bn Durban North coastal estate

JSE-listed FirstRand’s FNB unit has committed R800 million in development funding to the R3.5 billion Beachwood Coastal Estate, a low-density residential project underway on prime coastal land at the old Beachwood Golf Course site in Durban North.

FNB confirmed the financing deal on Wednesday, saying it would be Shari’ah-compliant. Shari’ah-compliant banking products prohibit interest (riba) and adhere to Islamic law through profit-sharing rather than interest-based models.

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The 430 333m2 Beachwood Coastal Estate is being driven by Beachwood Investments, led by Durban property developer Gavin Strydom and other investment partners.

It is recognised by the eThekwini Municipality as one of the major catalytic private-sector developments in the city.

“This is the first Shari’ah-compliant residential development funding deal to be concluded within the FirstRand group… demonstrating our continued innovation and appetite for lending,” said Preggie Pillay, CEO of FNB Commercial Property Finance.

Phase 1 of Beachwood Coastal Estate, now under construction, includes 52 freehold plots and 37 apartments, duplex villas, and forest duplexes, with first transfers anticipated from the third quarter of 2026 and apartment completion by Q4 2027.

“The loan is intended to facilitate development and improvements within the estate, contributing to its growth and sustainability,” said Strydom.

“Moreover, it will be utilised for various purposes including infrastructure upgrades, top structure development, and community initiatives within the Beachwood Coastal Estate. FNB’s investment reflects the confidence in the estate’s potential, economic activities in Durban and commitment to supporting projects in KwaZulu Natal,” added Strydom.

Listen/read: Sell your city: eThekwini’s real estate head Thapelo Mmusinyane

Civil construction on the development commenced in February 2025, alongside investment in infrastructure upgrades, including widened roads, potable water reservoir improvements, and stormwater management systems.

Public beach access will be retained with new ablution and parking facilities, according to the developers.

The development is projected to create approximately 1 500 direct jobs during construction and estate operations, while contributing an estimated R100 million annually in property rates to the eThekwini Municipality. Phase 1 pricing ranges from R6.1 million for plots to R25.15 million for duplex villas.

Pam Golding Property (PGP)was appointed as exclusive marketers of the estate last year.

Commenting on the development at the time, PGP Group CEO Dr Andrew Golding said: “Secure coastal estates have historically shown strong resale values, robust rental demand, and sustained capital growth… Beachwood Coastal Estate is expected to enhance surrounding property values, increase security, and contribute to long-term desirability in Durban North,” he said.

Amenities include a 9-hole signature golf course, wellness centre, spa, gym, clubhouse, indoor pools, padel and pickleball courts, co-working spaces, jogging and cycling paths, and direct beach access.

A five-star hotel was originally planned as part of the overall development, but Moneyweb understands that this component has been put on ice for now.

Listen to Gavin Strydom speaking on The Property Pod about one of his other developments north of Durban, near King Shaka International Airport (or read the transcript): 

You can also listen to this podcast on iono.fm here.

* Phenyo Selinda is a Moneyweb intern