Cape Town - Virgin Active South Africa retained the lease of its site on the iconic Green Point Common with an R3.7 million a month rental bid for the next 20 years.
The lease for the precinct, which includes 18 000 sq m with the pools, tennis courts and 200 parking bays to rent out, had been described as “a licence to print money.”
Virgin, which has held the lease for 23 years, had to out-price another bidder who drove the price to R3.6 million.
The property is nestled alongside the DHL Stadium, which is home to the Western Cape’s Stormers Rugby team. The property is also surrounded by the Green Point Track, the Green Point Cricket Club, Hamilton’s Rugby Club and the Metropolitan Golf Club.
Speaking after the auction at the DHL Stadium, located alongside the gym site, Virgin Active South Africa Managing Director Jessica Spira said the team was pleased with the outcome.
“We’re very happy to have retained the opportunity to operate the gym and to continue to provide our loyal members with access to world-class facilities at the Virgin Active Point Club.”
Thursday’s City auction also saw 32 non-core municipal land parcels and houses across the Peninsula – including Mitchells Plain, Lansdowne, Newlands, Muizenberg, Strand, Khayelitsha, Kuils River and Delft – sold before the marathon lease auction began for the iconic recreation site in Green Point.
Mayco Member for Economic Growth James Vos said: “This auction was a resounding success because of the many bids received for properties for commercial and social and residential development opportunities, including the Green Point lease.”
Vos said all auction bids were, however, subject to a stringent final approvals protocol by the Council, which was ongoing.
High Street Auctions Managing Director James Dall said the auction was a record turnout for a City land auction, with record registrations and record sales.
“The prices achieved, particularly on the lease auction, demonstrate that leases can be auctioned off successfully. The process is unequivocally powerful, transparent and, more importantly, is fiduciary-compliant in a free and competitive market process.”
Dall says the number of online bidders also demonstrates the massive national appetite for Cape Town property.
“We had bidders from across the country online and bidding fiercely.”
mwangi.githahu@inl.co.za