Cape Town - With potential for a bustling hub of commercial opportunities, multi-level offices and hotels, the iconic Foreshore Tower will go on auction next month, along with a 2.5 hectare plot in Century City.
The City said its economic growth directorate was preparing for the significant auction on March 27.
“Positioned next to the Cape Town International Convention Centre, the Foreshore Tower site promises not just a location but an experience, with breathtaking views of Table Bay Harbour and Table Mountain.
“The City invites visionary developers to join hands in this 99-year lease venture, ensuring not just a return on investment but a legacy for Cape Town,” said economic growth Mayco member James Vos.
The Century City plot along Century Boulevard had zoning rights that allowed for offices, retail spaces and businesses up to four storeys high.
Vos said the development of the properties would have a ripple effect that would boost Cape Town’s local economy, creating jobs and contributing significantly to the metro’s GDP.
The auction comes as the City grappled with a housing crisis, while it has been slated in the past for selling off well-located parcels of land to the highest bidder.
During a radio interview this week about the housing crisis, human settlements Mayco member Carl Pophaim said: “We used up all 99% of the budget allocated to human settlements in the preceding fiscal year. It demonstrates that we are virtually using the entire amount of money.
“The state is unable to allocate sufficient funds, land, or subsidies to support the construction of more affordable housing. This means that to provide affordable housing, all towns need to think beyond the box and use alternative levers.”
A researcher at housing activist organisation and law centre Ndifuna Ukwazi, Nick Budlender said it was disappointing that the City had no plans to use the site for more inclusive means.
“While the Foreshore site may not be ideal for housing, it is disappointing that the City intends to auction the site in Century City rather than attempting to put it to more just and inclusive use.
“There are thousands of people employed in Century City who would benefit massively from living closer to where they work, and auctioning off some of the last city-owned land in the area means this will now be very unlikely going forward.”
Meanwhile, the City last year concluded an auction for the public to purchase City-owned land that was not required for municipal purposes via a mandated competitive bidding process.
A total of 32 properties, including in Durbanville, Gardens, Newlands, Goodwood, Mitchells Plain, Khayelitsha, Grassy Park and Muizenberg were on sale via auction.
They varied in size and zoning, including community, residential and business residential properties.
“The disposal of these carefully considered properties augments the City’s commitment to driving accelerated inclusive economic growth and prioritising the development of underused land parcels via a competitive auction process that allows all interested parties to bid equitably for such opportunities,” the City has said.