The company behind the controversial R135m bid for Cape Town’s Good Hope Centre has challenged Mayor Geordin Hill-Lewis over the suggestion that it lacks the financial means to complete the purchase and says it has received no official communication that the sale has collapsed.

In a letter addressed to Hill-Lewis, City manager Lungelo Mbandazayo, and senior municipal officials, St John Holdings (Pty) Ltd and New World Faith Ministries said they were unaware of any official communication confirming the public assertions the mayor had made, and requested urgent clarity on the future of the transaction.

Last week, Hill-Lewis told Radio 786 that he believed the winning bidder, a Nigerian church, was unable to honour its R135m offer because it did not have the financial capacity it claimed during the bidding process.

Hill-Lewis added that the city is considering awarding the property to the second-highest bidder, a Muslim institution that submitted a R130m offer. 

In the letter, St John Holdings disputed the suggestion that its bid had failed, saying it had never been formally informed that the transaction had been terminated or that it had failed to comply with any of the city’s requirements, reports News24.

It said it had engaged with the city in good faith and had continued to co-operate with all due diligence and compliance requests.

The company said it was committed to concluding the transaction and was still awaiting feedback to enable it to finalise the purchase.

Full News24 report