PROPERTY: City Releases Properties To The Market
Recent Western Cape Business News
The City of Cape Town 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, Kensignton, 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 9,7 hectare site in Delft for mixed-use purposes as well as 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 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 Khayelithsa. 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.
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.
The City says it 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.
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