Council approves a raft of smart real estate transactions
02 November 2020
Statement by the Mayoral Committee Member for Economic Opportunities and Asset Management, Alderman James Vos
During the national lockdown, the City’s Property Management’s Smart Real Estate Service cleared most of the backlog as well as the majority of the property transactions that were in the pipeline between 2015 to 2019. Among these were transactions which were approved by Council and aimed at unlocking underutilised public assets in areas such as Mitchells Plain, Khayelitsha, Delft and Langa.
In my speech to Council on Friday, 30 October 2020, I took the opportunity to acknowledge the amazing work done by City officials during the remote working COVID-19 period.
They have cleared most of the backlog and the majority of property transactions that were in the pipeline between 2015 to 2019. This was evident in the large number of property reports at the Council meeting.
This effort and efficiency is part of the City’s Smart Real Estate Service and related COVID-19 economic and social recovery strategy. This smart approach, where we actively seek to unlock underutilised public assets for much-needed residential, business and community use, will gain momentum through Council’s endorsement.
I am particularly proud of our Smart Real Estate approach to the COVID-19 pandemic, prioritising property transactions to drive economic recovery.
The approval of the Bellville Velodrome report, ratifying the decreasing escalation rate on property disposals, allows the site to be unlocked for mixed use, residential, retail, sports and entertainment use.
In addition to relieving the City of the substantial maintenance burden, the City will receive a minimum of R177 800 000 (exclusive of VAT) from the transfer of the capital asset.
Some of the transactional highlights approved by Council include:
Mitchells Plain gets a well-deserved boost
Hope Again Recovery Home will now be able to take transfer of the Artemis Road property for community purposes. This is part of the City’s priority of building integrated communities, giving an opportunity for a registered non-profit organisation (NPO) to provide an essential social service to the community.
The approval of the sale of a commercial site in Bottlebrush street paves the way for the development of the subject property for business purposes. This smart transaction will facilitate access to land by small formal businesses in an appropriate location that is well served by public transport.
Driving local business development and social care in Khayelitsha
In Umrhabulo Triangle, Khayelitsha, recognising the need to promote commerce and facilitate employment, we are transferring a site to the adjacent grocer allowing expanded development and business growth.
It is tremendously exciting to leverage this site for much-needed economic activity to unlock the development and business potential of the upcoming economic activity node in the Khayelitsha sub-district.
The Litha Methodist Church will take transfer of the site from which they have been operating since 2012 for community purposes. The church organisation forms part of the project geared at empowering local communities and supporting township businesses. The goal of the City is not to make a profit but to facilitate socio-economic returns.
Stimulating job creation and community facilities in Delft
This is a new transaction aimed at stimulating employment opportunities close to the workforce in Delft by leveraging the sale of City-owned industrial properties in the area.
This project will leverage City assets to stimulate economic activity and job creation in the Delft area. The transfer of the various properties will help to activate the local industrial node while realising the City’s core socio-economic objectives.
Additionally, the transfer of a community-zoned site to The Elected in Christ NPO for the development of the property for community purposes will facilitate the provision of an essential social service in the suburb.
Creating a housing opportunity in Grassy Park
In response to the need to address unlawful activities, the department is rezoning the misused business site for residential purposes in Grassy Park and surrounds.
This illustrates our determination to identify and drive smart, community driven real estate transactions.
This small, approximately 1000m2 site is best used for residential purposes. While the site is not of sufficient size to develop viable public housing at scale, it can be leveraged to address housing demand through subdivision into small lots to the benefit of single dwelling house owners.
Supporting social upliftment in Langa
Lastly, it gives me great joy that the long overdue approval of the transfer of the Langa Baptist Church, which was established in 1949, to the governing NPO has been granted. This was a great passion of the late Ward Councillor, Nomtha Dilima. The direct ownership will promote socio-economic upliftment and enable security of tenure for this NPO to continue its community work.
We are very pleased to see these diverse transactions taking place to the benefit of these communities.
As the Mayco Member for Economic Opportunities and Asset Management, together with City officials, we will continue to use the levers at our disposal to transact land that unlocks economic and social benefits for the residents of Cape Town.
End
Published by:
City of Cape Town, Media Office
