The owner of the V&A Waterfront development in South Africa – the L&R Consortium – has announced plans to invest more than R7.5bn (£0.53bn, 0.78bn euro, US$1bn) in the property over the next four years.

The waterfront – situated between Robben Island and Table Mountain in the centre of Cape Town’s working harbour – is a prime visitor attraction which already features entertainment venues, hotels, retail outlets and a residential marina.

Historic attractions at the waterfront include a Victorian Gothic-style clock tower, Breakwater Prison, the South African Maritime Museum and the embarkation point for Robben Island.

Nakheel Hotels & Resorts, a Dubai World company, will be leading the development of the waterfront on behalf of the consortium.

The work will take place in three stages, with the bulk of the development to be completed before 2010, when South Africa hosts the football World Cup.

Covering a total of 6.5 million sq ft (603,000sq m), the first stage of the development – over the next six months – will comprise landscaping measures, additional car parking space and commercial facilities added.

The second stage will take place over the next three years and include new hotels and resorts plus the creation of promenades, entertainment areas and marinas.

The third and final stage will see the development of a number of other facilities, which could possibly include a new yacht club, a cruise ship terminal and a train station.

James Wilson, chief executive of Nakheel, said: “Our vision is to create the Riviera of South Africa, developing a resort that will become a global attraction.”

The L&R Consortium comprises the UK-based London & Regional Group Holdings, Dubai property investors Istithmar and South African-based Black Economic Empowerment. It won the bid for the mixed use development in September with a R7.04bn (£507m, 752m euro, US$955m) offer. Details: www.waterfront.co.za