AUCTION UPDATE:
The hammer fell on R3.7 million a month on Thursday, the 29th of June for the Green Point Virgin Active site lease, concluding the most successful City of Cape Town land auction to date.
The winning bidder, Virgin Active, will retain its occupation of the premises for the next 20 years.
The auction saw 32 non-core municipal land parcels and houses across the peninsula sold.
A twenty-year lease for the entire Virgin Active precinct on Green Point Common in Cape Town is up for auction by the City of Cape Town.
The lease for the massive indoor/outdoor fitness centre was taken over by Virgin Active twenty-three years ago after the liquidation of LeisureNet, the holding company of SA’s Health & Racquet Club.
According to High Street Auctions who will be conducting the auction on behalf of the City, the initial lease period of the 17 844m2 spread will be for ten years with an additional ten-year renewal option available after the initial term.
The +4 300m2 building boasts a massive health and leisure centre. Under Virgin Active’s lease, which expires on the 30th of June 2023, it is divided into sections for weight training; a state-of-the-art cardio circuit; a riding studio, a wattbike centre; a functional training floor; squash courts; a mind and body studio; a Mind & Body studio; fitness class areas; a heated indoor lap pool; saunas and steam rooms; a health food restaurant; Wi-Fi chill zones; change / shower facilities and an access-controlled children’s acre space catering to under sevens.
The extensive outdoor facilities spread over 4 264m² are equally impressive. They include a second swimming pool, tennis courts, a volleyball court, and an open-air gym – all accessible from some 200 parking bays that will be included in the auctioned lease.
The property enjoys an Open Space 2 (OS2) zoning, specifically intended for sport and recreation purposes, making it ideal for a gym or sporting club.
Nestled alongside the DHL Stadium that 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.
High Street Auctions says Virgin Active SA is aware that the lease is going on auction and if it is not the successful bidder, it will have to vacate the property once the City of Cape Town tenders the requisite three-month notice period. In this case, the building will revert to the ownership of the Council.
The lease will be a fully repairing / maintenance (triple nett) lease with the lessee assuming responsibility for all tenant installations, insurance, maintenance, municipal charges (excluding rates and taxes) and other related expenses.
City rental payments will be due in advance on or before the first day of each month, and prospective investors may sub-let a portion or the entire lease area subject to certain approvals.
The terms and conditions of the lease auction include:
- One month’s rental in advance.
- 6% commission plus VAT calculated on the first twelve months rental.
- Ten business days subsequent to the approval by the City’s Immovable Property Adjudication Committee (the confirmation period).
- Thirty days from date of notice by the auctioneer of acceptance by the Seller to the Purchaser.
- The Seller to settle all arrear levies, rates, and taxes (as applicable).
- The Seller is responsible for all compliance certificates.
- Possession and occupation take place when the current tenant vacates, as per the three-month notice period.
- Rates and taxes are included in the monthly lease fee.
The hammer fall on the lease auction will be for the equivalent of one month’s rental of the premium site. The current lease holder’s fixtures, fittings, furniture, and equipment will be removed.
The City’s property auction will take place on the 29th of June at 12:00pm in Business Lounge G on Level 4 of DHL Stadium (formerly known as Cape Town Stadium) in Fritz Sonnenberg Road, Green Point, Cape Town.
