UPDATE: The City of Cape Town has changed this auction’s date from the 27th of March 2024 to the 25th of April 2024.
The City of Cape Town has released the details for its upcoming auction which includes a 99-year lease for a 25 000m2 bulk tower block development in the Foreshore precinct, adjacent to the CTICC.
Taking place on the 25th of April 2024, interested parties are set to enter bids reflecting the monthly rental (exclusive of VAT) with their willingness to commit under a triple net lease agreement that encompasses all costs, repairs, maintenance, and insurance.
According to High Street Auctions, the initial lease duration is set to 60 years with a 20-year renewal option followed by an additional 19-year optional extension. Cumulatively, the total lease option is for 99 years.
The lease signature date does not signify onset of rental payments. Instead, the City allows developers a generous 36-months to focus on design, planning approvals, and fulfilling statutory requirements essential for a project of this magnitude.
One of the most significant conditions revolves around the Deferred Rental Period and Rental Commencement Date. In this instance, the lessee has conditional options to defer all or a fraction of the monthly rental during the deferred rental period which is envisaged to coincide with the construction phase.
The Foreshore tower block lease is one of two substantial City of Cape Town development opportunities going under the hammer. The second is a sale auction of one of the few remaining development sites in the Century City with permissible bulk of +- 25 000m2 on GB3 zone. The site is in proximity of a mixed-use development combining office, retail, residential, and leisure components in an integrated, stimulating and aesthetically pleasing urban environment.
