Cape Town could raise R100m for La Med land
Category Cape Town Property Market
A large slice of municipal land in the prestigious Clifton area on the Atlantic Seaboard in Cape Town – which has some of the most expensive real estate in South Africa – could be sold off to develop a massive shopping, parking and residential complex.
It is understood that the sale of the property - if approved by ratepayers and residents of Clifton - could raise more than R100m for the city of Cape Town.
It is envisaged that it will consist of a three-level underground parking garage with 750 bays, about 2 750m square of commercial space including an anchor retail tenant, a number of boutique line shops, and the possible relocation of the famous beachfront La Med restaurant.
The Cape Town City Council has approved a recommendation by Mayor Patricia de Lille to commence a public participation process related to the “Clifton garages precinct upgrade” which includes the sale of certain portions of land for the development of “residential opportunities, an underground parking garage, [and] retail facilities”.
A document put to the council last week says the council wishes to obtain authority “to commence with a public participation process in terms of the Municipal Asset Transfer Regulations for the disposal or lease” of three pieces of land in Clifton.
The document says the property “is considered to be a high value asset valued at more than R50m and therefore requires council’s authority to commence with the public participation process”.
It is envisaged that the land portions will be sold through a process of “public competition”. According to the council, the properties were part of the mayor’s “strategic asset development initiative”.
Council officials stated that the parking garages - currently hired out by the council to local tenants - and the Glen Country Club, which are on the land, were aging. A note to councillors reported that they were “not constructed with quality materials, these have become dilapidated and require an urgent upgrade”.
While the upgrade project initially focused only on the Clifton garages – near the parking area for Clifton’s fourth beach – it was now proposed that the Glen Country Club and La Med restaurant, bowling greens, tennis courts, and a cricket oval, used also as a landing strip for paragliding enthusiasts, also should be included.
“The motivation for expanding the project area is based on the need to ensure the feasibility and economic viability of the project,” the report to councillors said.
It is envisaged that existing community and sport facilities should become “an integral part” of the restructured precinct, the report stated.
It is envisaged that a developer would be sought through the competitive tender process which would enter into a contract with the city to design, build, operate and maintain a new parking complex. Officials reported that the precinct was not being used optimally at present.
“Enclosed and safe parking is currently at a premium in this area and (is) highly sought after. Reports of parking garages being sold for close to R1m have been received recently,” said the report to councillors.
Source: Fin24
Author: Fin24
