The City of Cape Town is once again being accused of underselling prime land.
Activists say the city has lost over R100-million, in a deal that favoured property investment giant, Growthpoint Properties.
When a piece of land is bought, it can come with bulk rights, which determine how much floor space can be developed on proposed buildings.
Growthpoint Properties spent R86,5-million on this land and 17,500 metres squared of its bulk.
Nkosikhona Swartbooi, of Ndifuna Ukwazi, said, “This site was rezoned and it has got more rights than that, which means, if we had sold it for the bulk value that it had, which is 46 000 and above, we could have benefited more than R100 million.”
It seems Growthpoint plans to use the floating bulk even though it didn’t pay for it.
It’s looking to use the site as office, retail and hotel space but the city claims it still owns the surplus bulk.
Cape Town deputy mayor, Ian Neilson said, “I don’t know what they have assumed around that but certainly from the city’s perspective, we require them to make an application to purchase those additional rights, if they want to proceed at the development scale they are proposing.”
Growthpoint didn’t answer questions asked via email pointedly, instead, it says it’s “engaging the city closely” on the matter.
Neilson says the city will sell the remaining 28,500 meters squared, at market value.
Source: News24
