SCA reserves judgment in Leopard Creek rates battle
The SCA last week heard arguments in the legal battle between the Nkomazi Local Municipality and billionaire businessman Johann Rupert’s Leopard Creek Golf Estate over millions of rand in property rates.
The municipality in Mpumalanga values the golf estate at R1.56bn, while Leopard Creek management maintains that it is worth R330m.
In May last year, The Sunday Independent reported that the Mpumalanga High Court (Mbombela) ruled in favour of the course and reviewed the municipality’s decision and directed the Valuation Appeal Board for the district of Ehlanzeni to be differently constituted and to consider and weigh the evidence of witnesses of both sides.
The municipality asked the SCA to determine what was the applicability and interpretation of the words ‘recognised valuation practices, methods and standards’ in terms of the Municipal Property Rates Act of 2004 (MPRA), with special reference to Global Standards 2017 issued by the Royal Institute of Chartered Surveyors (RICS) and the International Valuation Standards Committee.
In addition, the municipality asked the SCA to rule on what was the confirmation of the principle of the ‘highest and best use’, informing the highest value, as prescribed by RICS 2017 and IVSC 2017 as a cornerstone for the determination of value in terms of the MPRA.
The municipality’s spokesperson, Cyril Ripinga, last week said the prestigious 355-hectare estate also has a clubhouse complex and about 97 residential stands, tennis and squash courts, a swimming pool and gym, among other facilities.
‘In 2017, the municipality determined the value of the golf estate at R1.56bn according to the MPRA. However, the management of Leopard Creek disagreed and sought a private valuation which priced the property at R450m,’ he said.
The Sunday Independent notes that the municipality then approached the Valuation Appeal Board for the district of Ehlanzeni.
It dismissed Leopard Creek’s objection and concurred with the municipality that the golf estate was worth R1.56bn.
Judgment in the SCA matter has been reserved.
Article disclaimer: While we have made every effort to ensure the accuracy of this article, it is not intended to provide final legal advice as facts and situations will differ from case to case, and therefore specific legal advice should be sought with a lawyer.
