[imagesource:wikicommons]

Described as a ‘once in a lifetime opportunity’, the City of Cape Town and High Street Auctions will be auctioning off a 99-year lease for a 25,000 square metre development block in the Foreshore precinct.

The city previously stated that it anticipates R1 billion worth of investment going into the site.

According to High Street Auctions, the development block is adjacent to the Cape Town International Convention Centre (CTICC). It is expected to be a hot-ticket item for private investors, given its proximity to areas like the V&A Waterfront and other tourist attractions.

Greg Dart, Director of High Street Auctions, said extended commercial leases on strategic city property place the development onus on private investors, while the city council ultimately retains ownership of the land and, eventually, all the site improvements.

“The Foreshore Tower Block development rights offering within the CTICC precinct stands as an unquestionably bold move, given the prime site and investment scales,” he said.

The auction will be held on 27 March at the DHL Stadium in Green Point.

[image:highstreetauctions.com]

[image:highstreetauctions.com]

“The initial lease term is 60 years, with a 20-year renewal option followed by a 19-year optional extension.” “The total lease option is 99 years,” he explained.

The auction house stated that various beneficial terms had been incorporated into the City’s Pro Forma leasing agreement to encourage developers ahead of the Foreshore Tower Block development rights sale.

The city will then give the developers 36 months to focus on design, planning approvals and fulfilling statutory requirements essential for the project.

“This is among the favourable conditions afforded by the city in finalising all statutory land use applications and building planning approvals prior to the lease commencement date,” the group said.

One of the most significant conditions revolves around the Deferred Rental Period and Rental Commencement Date.

“In this instance, the Lessee has conditional options to defer all or a fraction of the monthly rental during the deferred rental period, which is envisaged to coincide with the construction phase,” High Street said.

The city has been deliberately vague about what should be built on the site as long as it is in line with zoning and development rights.

Anyone out there who wants to go halfsies?

[source:businesstech]