Big interest in Sandton Gautrain property

The land above the Sandton Gautrain Station, valued at R800 million, has piqued the interest of local and international investors, Broll Auctions and Sales said this week.

The site, which has been the subject of much controversy due to a historical transaction with a company with ties to the Gupta family, will finally be sold today when tender bids officially close.

Broll, which is handling the liquidation sale, said hospitality companies, international investors, pension funds and private investment firms have thrown their hats in the ring.

The sale is subject to approval of the liquidators on behalf of the creditors.

The property is located on the corner of Rivonia Road and West Street, opposite Sandton City. It consists of four hectares of undeveloped land, which lends itself to a mixed-use development in the heart of the Sandton central business district.

‘Inexpensive opportunity’ for international players

Norman Raad, chief executive of Broll, said the site presents an inexpensive opportunity for an international player.

It is close to Sandton City, the Michelangelo and Nelson Mandela Square, and is considered a prime location with constant footfall due to the activity in the area.

The piece of land was originally meant for the development of Kgoro Central, a 65-floor tower with a hotel, luxury apartments, an art gallery and a retail and restaurant component.

Raad said the new owner will have to submit amended redevelopment plans to the city due to the changes in the area over the years.

“We have received questions from potential buyers as to whether the two 50-year leaseholds could be converted to freehold, which the city is considering,” he added.

In 2018, Cedar Park Properties 39, which was part of the Gupta-linked Regiments Group, bought the land from the City of Joburg for R280 million. Regiments is under liquidation.

The deal between Regiments and the city was controversial because Cedar purchased the land using a bond from the city. The debt was never settled.

The shady transaction came to light in 2019 after the city cut the water supply of the Sandton Gautrain Station due to outstanding property taxes.

4

The size of the property in hectares.