The City of Cape Town is poised to auction a lease opportunity for the bulk development rights on the Foreshore Tower site, a prominent property next to the Cape Town International Convention Centre (CTICC) in the heart of the city’s central business area.
Foreshore Tower site auction details: Here’s what you must know
Alderman James Vos, Mayoral Committee Member for Economic Growth, in a statement, remarked:
“The Foreshore Tower site is strategically located, so by releasing the footprint for development, the City will provide a sought-after opportunity for commercial property development, catalysing economic growth, creating employment opportunities and generating revenue for service delivery throughout the city.”
The auction, slated for 14 March 2024, will offer a 99-year lease for the site located at the corner of Heerengracht and FW de Klerk Boulevard.
The site, currently vacant, offers approximately 25 000m2 of usable bulk rights, with potential for further development subject to formal planning processes.
RelatedPosts
“The highest and best use for the property is considered mixed-use typologies based on the demand and the primary uses allowed. This includes primary uses such as a multi-level office, hotel, and leisure. However, the City is non-prescriptive of the use as long it is in line with the zoning and development rights and complements the existing operations at the CTICC,” added Alderman Vos.
The City aims to attract substantial investment from private property developers for the construction of the Foreshore Tower and associated amenities.
The development is expected to complement the CTICC’s offerings, enhancing attractions for international conferences and contributing to the city’s GDP.
Here’s how property auctions usually work
Commercial real estate auctions, such as the one planned for the Foreshore Tower site, typically start with the auctioneer requesting a bidding price.
Participants can then place bids, with the auction continuing until the highest bid is accepted. Upon winning, the buyer is usually required to make a significant down payment, often around 10% of the sales cost, with the rest of the settlement agreed upon between both parties.
This auction method is efficient, saves time in the sales process, and allows buyers to have control over the sale price.
The legal documents are presented before the auction starts, ensuring transparency and legal certainty for both buyers and sellers.
The City of Cape Town, by leveraging this auction method, is looking to attract a wide range of potential developers, both locally and internationally, who are interested in investing in a high-value property with long-term economic benefits.
