Developers gear up in race to buy legendary track
THE lights are on and the overexcited voice of commentator Murray Walker is ready to scream “Go, go, go”.
But when the chequered flag drops at Thursday’s auction at Summer Place in Johannesburg, will there still be racing at Kyalami in Midrand, or will more Tuscan-style housing replace the grandstand and pits?
Lance Chalwin-Milton, joint MD of High Street Auctions, says there is probably at least a 60% chance that the 72ha farm Bothasfontein, now in liquidation, will be bought by property developers looking to turn the site of the famous circuit to more lucrative land use.
He expects several listed property unit funds to be in the auction room.
The auction will go ahead after a court hearing between the liquidators and the owners was resolved this week. The court ordered that the reserve price be raised from R129-million to R200-million.
Chalwin-Milton is confident that Kyalami will be sold — eclipsing an auction record currently held by a R120-million Knysna property — but is unwilling to estimate a figure. “It could be R201-million or R300million,” he said. He was relieved that the “free and unencumbered” property could now go under the hammer.
Kyalami was built in 1961 and had its heyday in the 1970s and early 1980s, when it hosted the Formula One South African Grand Prix and motorcycle grands prix, as well as a ninehour endurance race that attracted more than 100 000 spectators. The circuit was known as one of the fastest tracks on the world racing calendar.
Political isolation ended international events in 1985 and the 4.3km circuit was redesigned to a tighter, more technical configuration before F1 returned in 1992 and 1993.
During its long history of hosting F1 races, the track saw legends such as Jim Clark, Jack Brabham, Ayrton Senna, Alain Prost and Niki Lauda speeding around its twists and turns.
Although Kyalami holds a special place in the hearts of South African motor racing fans, in truth it has been in decline since 1993, when the Automobile Association bought the track but could not afford to maintain its F1 status.
Brothers Dimetrys and Antonys Theodosiou bought Kyalami from the association in 2004, but have not fulfilled promises to restore the circuit to its former glory.
Their Universal Property Professionals owns a 40% share and manages the property. Imperial Holdings and Nedbank each own 30%.
The Theodosiou brothers have been in a legal battle with the other investors for several years.
Although some domestic car and motorcycle racing — and driver training — still takes place at Kyalami, it will take major investment beyond the sale price to attract international events back to the track.
The 2010 World Superbike series was the last major race it hosted. This year’s South African SBK round is at the Phakisa circuit in the Free State.