Protesters outside the Good Hope Centre to picket against the City of Cape Town’s auction of 50+ municipal properties set for 26 February.
Image: Armand Hough / Independent Newspapers
THE sale of the iconic Good Hope Centre fetched R135 million during an auction on Thursday.
Claremart Group hosted the auction online after it had been changed from an in-person event. The property, which they said would be a “trophy platinum property in anyone’s portfolio”, was the last lot in a four-hour auction.
However the road leading up to the auction was marred by outrage over the sale of the landmark site.
Protesters gathered outside the Good Hope Centre earlier this week to picket against the City of Cape Town’s auction of more than 50 municipal properties.
Image: Armand Hough
The City was also hauled before the courts in a last ditch attempt to halt the sale, a move the DA-led municipality said failed when that application was dismissed.
GOOD's Deputy Secretary-General and City councillor, Suzette Little, said that the sale price of R135 million translates to an effective R129.3 million once the R4.7 million in recent upgrades, funded by the public, is taken into account.
"At the same time, provision has been made for a further R100 million in outer-year allocations linked to the site. On its face, this raises serious questions."
Following the sale of the property, the ANC Caucus in Parliament resolved to meet with the National Minister of Human Settlements in seeking a possible intergovernmental dispute declaration.
ANC Chief Whip, Mdumiseni Ntuli, said that their battle to stop the City from selling public land to foreigners, land that could otherwise have been used for housing and land redistribution, will continue.
“While the housing waiting list stands at over 400,000, the City continues to sell municipal land which could be used for both social and affordable housing, to the highest bidder.
“To make matters worse, the City has invited foreign nationals, both individuals and companies, to participate in the auction. This will not only dispose of strategic government land and buildings to foreigners, but given the strength of various foreign currencies, totally outprice South African buyers,” Ntuli said.
In response, the City of Cape Town highlighted their recent statement welcoming the Western Cape High Court’s dismissal of attempts to block the release of 50 City-owned properties for private sector investment, including the iconic Good Hope Centre.
“We welcome the High Court’s dismissal of several applications which aimed to block land release that will unlock economic and social value for Capetonians. We’ve said from the start that our land release process is lawful and transparent, and we are glad that the court has seen through these meritless applications. A total of four have now either been struck off the roll or dismissed with costs,” said Mayco member for economic growth, James Vos.
Vos previously said that releasing the Good Hope Centre precinct for redevelopment is a strategic move aimed at unlocking its immense economic potential.
“By releasing this site for revitalisation and redevelopment, we are giving the private sector the opportunity to develop a vibrant mixed-use precinct.”