Cape Town - The City of Cape Town is set to gain more than R39 million next year from the proceeds of its leasing agreement with Virgin Active for its coveted The Point Gym precinct on Cape Town’s Green Point Common.
This after the fierce battle for the prime land precinct – which includes 18 000m² with pools, tennis courts and 200 parking bays to rent out – was won by the health and lifestyle group at a public lease auction in June for R3.7 million a month.
According to High Street Auctions, which conducted the lease auction on behalf of the City, final signatories for the lease were completed after the August 24 announcement by Mayco member for economic growth James Vos, that the council had approved the auction’s top bid.
High Street Auctions director Greg Dart said the price achieved demonstrated that leases could be auctioned successfully.
“The process is unequivocally powerful, transparent and, more importantly, fiduciary-compliant in a free and competitive market process. We are immensely proud of our partnership with the City of Cape Town, which has delivered a potent new revenue stream that will benefit residents for decades.
“Alderman Vos also noted that the revenue generated from the lease of the property had outperformed expectations,” he said.
Vos said it was proof of the City’s commitment to drive accelerated inclusive economic growth and prioritise redevelopment of immovable property assets via a competitive auction process that allowed all interested parties to bid equitably for such opportunities.
“In this case, the demand and subsequent offer far out-performed the City’s expectations. The City’s smart real estate approach to releasing City-owned property to get the best economic and social value out of its assets that are not required for municipal purposes is working. The revenue generated from the lease of this property will be used for service delivery throughout the city.”
The precinct’s outdoor facilities, spread over 4 264m², include a swimming pool, tennis courts, a volleyball court and an open-air gym, all accessible from some 200 parking bays.
The indoor health and leisure centre covers a further 4 300m² that includes sections for fitness class areas, a heated indoor lap pool, saunas and steam rooms, a health food restaurant, and an access-controlled children’s care space.