Virgin retains Green Point common site
LEGAL processes to finalise the results of last week’s City auction of 32 non-core properties and the lease for the iconic Green Point common recreation site are under way following what both the City and the auctioneers dubbed a “resoundingly successful auction”.
Economic Growth Mayco member James Vos said all bids received would be subject to a 15-day business day acceptance period following the decision of the City’s immovable property adjudication committee.
Vos said: “This means the official results of the auction will be confirmed at a later stage once due legislative processes have been concluded.”
He said the auction was a resounding success because of the many bids received for properties for commercial and social and residential development opportunities and the revenue generated would be used for service delivery throughout the city.
Ahead of the auction, housing group Ndifuna Ukwazi had criticised selling public land to the highest bidder as “wasteful, short-sighted and ultimately an unsustainable and ineffective way of raising municipal finance.”
Ndifuna Ukwazi researcher Nick Budlender said: “We find it especially problematic that the City is selling 19000 square metres of developable land in Khayelitsha despite the major housing crisis affecting residents of the area.”
However, speaking after the auction, Vos said the auction had been an opportunity for the public to purchase City-owned land that was not required for municipal purposes, via a mandated competitive bidding process.
Vos argued that the disposal of the properties had been carefully considered and said that the auction augmented the City’s commitment to driving accelerated inclusive economic growth.
Meanwhile, Virgin Active South Africa retained its lease of its site on the iconic Green Point common with a R3.7 million a month rental bid for the next 20 years.
Virgin, which has held the lease for 23 years, had to outprice another bidder who drove the price to R3.6m.
Virgin Active South Africa managing director Jessica Spira said the team was pleased with the outcome.
“We’re very happy to have retained the opportunity to operate the gym and to continue to provide our loyal members with access to world-class facilities at the Virgin Active Point Club.”