“Before we purchased the property we had no prior knowledge that the property had more bulk rights,” said Timothy Irvine, Growthpoint Properties’ asset manager for the Western Cape.
Growthpoint found out about the sale of the property through a newspaper article in April 2015. The company received a copy of a publicly available prospectus from auctioneering firm Aucor in August 2016, giving notice that the property was to be placed on auction and giving details about the property. In it, they stated the property had 17500m² of bulk rights.
The auction took place in September 2016 at the Cape Town International Convention Centre, where Growthpoint paid R86.5million (excluding VAT at 14%) for the land. The transfer of the land took place in March 2017.
According to social housing advocacy group Ndifuna Ukwazi, the land could have been sold for between R185m and R240m.