Cape Town dismisses botched property auction claim
The City of Cape Town’s forensic report into the sale of the Site B Foreshore property has dismissed claims made by social justice advocacy group Ndifuna Ukwazi of a botched auction in favour of Growthpoint Properties.
Cape Argus says according to the report, numerous attempts were made to dispose of the land, ‘however they were unsuccessful therefore the public auction option was explored’.
It also stated that the city was advised by the valuations and property disposal department that if the rights of Site B were increased it would generate more revenue.
According to the city’s valuation report, the estimated market value of Site B was R80m with a reserve set at R72m.
However, Ndifuna Ukwazi believes the land could have been sold for between R185m and R240m.
During the course of the investigation, it was pointed out that the city’s planning and building development failed to definitively quantify the permissible floor area and potential accessible bulk in respect to Site B.
The report also stated that the department of planning and building development management failed to maintain adequate records which resulted in incomplete documentation.
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