City Releases Properties to the Market and Commences Tender Processes | Western Cape Government


City Releases Properties to the Market and Commences Tender Processes

25 November 2010

The City of Cape Town's Mayoral Committee Member for Economic Development and Tourism, Alderman Felicity Purchase, recently announced that the Property Management Department has released a number of vacant City-owned properties to the market.

The release of properties has been ongoing for the past few weeks and the latest round on 05 and 12 November included seven single residential erven in Heathfield, Kensington, Southfield, Surrey Estate and Maitland; a 30 hectare industrial site in Eerste River; and business premises in Wesfleur (Atlantis) and Fisantekraal (Durbanville).

The City previously advertised a nine point seven (9, 7) hectare site in Delft for mixed-use purposes as well as thirty-one (31) social care properties (churches and crèches) in Wallacedene. The tenders received for these properties are currently being evaluated and will be awarded soon.

Approximately fifty (50) additional City-owned properties which are not required for municipal purposes are being prepared for release to the market, either for sale or lease during the first quarter of 2011. These properties are located all over Cape Town and are zoned for a range of uses, including single residential, general residential, general business and industrial purposes. The properties will be sold on a tender basis and will be advertised in the Municipal Notices that appear in Die Burger and the Cape Times on Fridays.

"Most of the business and industrial properties which have been released or that will be released early next year are located in previously disadvantaged areas such as Atlantis, Delft, Fisantekraal, Manenberg, Mitchells Plain, Macassar, Blue Downs, Eerste River and Khayelitsha. We believe that the sale and development of these properties will have a positive impact in terms of economic growth and job creation in these areas. Residents often have to travel long distances and incur transport costs for their daily shopping needs. These developments will improve accessibility for the local communities to shops and other facilities, and will become a source of local employment," said Alderman Purchase.

The residential properties that are being sold by the City have been lying vacant for many years and in most cases have become a burden to the City and the community. The erven are spread across Cape Town and maintenance is costly. The properties therefore often become dumping sites and security risks.

Alderman Purchase emphasised that these residential properties will be sold through a tender process and at market-related prices. The sale of these properties must not be confused with the City Housing Directorate's processes of providing housing to the poor.

"We all realise that the property market and the building industry are struggling, but we trust the City can stimulate building activity and create economic growth within its poorer communities through this property release programme," said Alderman Purchase.

"The City is not off-loading its assets, but is isolating land which is superfluous to City needs and which could be better utilised in stimulating economic development. Strategic sites will be made available on a long-term lease basis as opposed to a freehold basis, to ensure that the City's valuable asset base is not stripped," said the City's Director for Property Management, Ruby Gelderbloem.

Issued by:
Communication Department
City of Cape Town

Media Enquiries: 

Andre Human
Acting Manager Acquisitions and Disposals Property
Management Department
Tel: 021 400 2366
Cell: 084 208 3524