The City of Cape Town, through High Street Auctions, is set to auction a 99-year lease for a 25,000 square meter development block in the Foreshore precinct, with an anticipated investment of R1 billion into the site.
Adjacent to the Cape Town International Convention Centre (CTICC) precinct and within walking distance of the V&A Waterfront, the site boasts proximity to Table Mountain and Cape Town’s beaches.
Director of High Street Auctions, Greg Dart, said that the initial lease duration is 60 years, extendable to 99 years.
The auction, scheduled for March 27 at the DHL Stadium in Green Point, will see registered bidders competing based on their monthly rental bids under a Triple Net Lease agreement, covering all costs of repairs, maintenance, and insurance.
The lease auction method, known for generating substantial revenue streams, serves the City's development agenda without relinquishing ownership. Favourable conditions in the City’s Pro Forma lease agreement aim to incentivise developers.
The process involves competitive bidding, with the highest bidder proceeding to sign the lease agreement after City ratification.
The City allows a 36-month period post-lease signing for design, planning approvals, and statutory requirements fulfilment before rental payments commence. Deferred rental options during the construction phase are among the conditions outlined, aiming to support lessees.
Alderman James Vos, Mayoral Committee Member for Economic Growth, anticipates the project’s positive impact on Cape Town’s economy, job creation, and GDP contribution.
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