CAPE TOWN
Growthpoint in talks with city on auction ‘underpayment’
SA’s largest real estate company, Growthpoint Properties, says it is holding meetings with the City of Cape Town following allegations that it took about R140m from the city by underpaying for land on the Foreshore. The company, which owns R17.2bn worth of assets in the city, bought a parcel of land with attached development rights in September 2016 at a public auction for R86.5m, beating at least 20 bidders, Growthpoint CEO (SA) Estienne de Klerk said. Land justice NGO Ndifuna Ukwazi said the city should have sold the land, known as site B, and attached rights for about R227.3m. It said while Growthpoint paid about R5,000/m² for the 4,000m² piece of land and 17,500m² for development rights, there was potential for 46,000m² of development rights. Thus the company paid R1,880/m², not R5,000/m². "We are engaging directly with the city regarding this property, which we acquired through a public auction with a vision to create a precinct together with two neighbouring office properties ...
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