Signing of the agreement – Back, from left: Neil Hayes – Managing Director of AECI’s property portfolio; Dr Ivan Bromfield – the City’s Executive Director for Human Settlements; Mark Kathan – AECI Chief Financial Officer; Achmat Ebrahim – City Manager (City of Cape Town); and Councillor Benedicta van Minnen – the City’s Mayoral Committee Member for Human Settlements
Front, from left: Mark Dytor – AECI Chief Executive; Patricia de Lille – the City’s Executive Mayor; and Alderman Ian Neilson – the City’s Executive Deputy Mayor
The Competition Tribunal yesterday approved a transaction between the City of Cape Town and AECI Ltd.
The transaction dealt with the acquisition by the City of Cape Town of a 684-hectare piece of land at Paardevlei, Somerset West for future urban development from AECI Ltd.
This property is one of the last extensive, undeveloped pieces of land within the developed footprint of the City of Cape Town. This transaction is part of our commitment to meeting the needs of our expanding population.
The purchase price is R400 million excluding VAT. In terms of the City of Cape Town’s Regional Spatial Development Framework, the area is earmarked for mixed use. The finalisation of such plans, and any amendments thereto, requires a public participation process. The area will take many years to develop.
Before the City entered into the agreement with the sellers, Paardevlei Properties Limited, a subsidiary of AECI Ltd., a lengthy and considered process was carried out, including the requisite due diligence investigations. The land had become surplus to AECI Ltd.’s operational requirements. The City ensured that there was strict compliance with all legislative requirements in order to effect this purchase.
‘We are extremely pleased to have concluded this transaction, which was well supported by the AECI Board of Directors. We believe the City is the right buyer since it is best placed to develop the property strategically to the future benefit of Cape Town and its people,’ said AECI’s Chief Executive, Mark Dytor.
This agreement will allow the City to meet many of its urban development obligations.
The City will communicate in due course its process and development objectives towards the planning and development of the area.