R10m bid for Brookes Hill plot
Potential buyer awaits confirmation as counter-offer window still open today
AN undeveloped erf on the summit of Brookes Hill on the Port Elizabeth beachfront attracted a final bid of R10-million yesterday. Acceptance of the final bid at yesterday’s auction of the site – made by Port Elizabeth’s Mohammed Riedau Demaine, a co-director at Ocean Grow Property Development – has not yet been confirmed.
Any other interested parties have until 5pm today to submit a counter offer, after which the owners, Sisanda Development Services, will decide whether they will accept any of the offers.
The sale of the 6 280m² property – situated on the highest point of the plush Brookes Hill precinct and offering rare 360degree views of Algoa Bay, unspoilt bush and the city – drew about 30 people, at least six of whom were serious bidders.
The site is also occupied by a World War 2 battery observation post which, as an official heritage site, may not be demolished and must be incorporated into any development.
It holds a Residential 3 zoning, meaning it is allowed to accommodate a maximum of 80 dwelling units up to a height of 40m, or 10 floors, on the site – something that has drawn a range of concerns from neighbouring residents.
Bidding for the land, which was managed by In2Assets property specialists and directed by auctioneer Andrew Miller, started slowly with a R3-million bid, before coming down to a two-horse race in the mid to upper R9-million bidding battle.
Afterwards, an upbeat Demaine said he represented a foreign property entity which was involved in both property acquisitions and development. Intimating that, should the bid be accepted, there would be no immediate development of the property, he said he had no idea of what his “principal’s” intentions were for the land.
According to Legal City, Demaine is registered as a director of Port Elizabeth fishing companies Cape Padrone, Rial Fishing, Tasneen Fishing and Zimele Fishing.
He is also listed as a director of Ocean Grow Enterprises, Ocean Grow Fishing and Ocean Grow Property Development, which was registered in November last year.
In2assets spokesman Brad Dowlman said while the company was satisfied with yesterday’s auction, a number of potential buyers could not be present at the sale, but had expressed interest in the property.
“While there is still a window open for counter offers, there will be no horse trading. Should an authentic counter offer be received before 5pm, [it] would be put to the winner of today’s bidding, who would have the option of matching or improving on [it].
“The seller will then decide on whether to accept any of the offers,” Dowlman said.
After concluding the auction – during which he touted for bids of between R12-million and R15-million – Miller said the value of the winning bid reflected current conditions in the Bay property market and the appetite for high-calibre properties.
The consortium of Sisanda owners, according to Legal City, acquired the land for R630 000.