Subcouncil resolution details

Subcouncil 4

Agenda item no

04SUB 17/10/2024

Subject

PROPOSED LEASE OF A PORTION OF CITY-OWNED LAND, BEING A PORTION OF REMAINDER OF ERF 99954 CAPE TOWN, SITUATED AT BOFORS CIRCLE, EPPING INDUSTRIA, CAPE TOWN: PRESTIGE CLOTHING (PTY) LTD FOR PARKING AND STORAGE PURPOSES

Meeting date

Thursday, October 17, 2024

Resolution

Recommend

Date closed

Thursday, October 24, 2024

Resolution detail

It is recommended that the lease of a portion of the Remainder of Erf 99954 Cape Town, situated at Bofors Circle, Epping Industria, Cape Town, shown hatched and lettered ABCDEF on Plan No 130009972 attached and marked Annexure A, in extent approximately 2 755 m², to Prestige Clothing (Pty) Ltd, or its successors-in-title, be approved subject to inter alia the following conditions:
a) A market rental of R38 600 per month, excluding VAT and including rates, calculated at the rate applicable at the time of the transaction, be payable;
b) The monthly rental is to be adjusted based on 6% per annum compounded annually commencing from 2024-07-01;
c) The above rental is to be effective and payable as of 2024-07-01;
d) The lease will endure for a period of ten (10) years;
e) The rental is to be reviewed after a period of five (5) years;
f) The property may be used for parking and storage purposes only;
g) Subject to such further conditions to be imposed by the Director: Property Transactions in terms of his delegated authority;
h) Subject to compliance with any other statutory requirements;
i) No compensation will be payable for any improvement made to the property;
j) No structures of any kind may be erected on the property without the written consent of the City of Cape Town

FURTHER RESOLVED

The rental amount must be reviewed after 5 years, taking into consideration Subcouncil’s concerns that the proposed rental is too low and to allow for a higher rental to be implemented. The reviewed rental must be submitted to the Subcouncil for their comment.
Any request for a sub-lease must be submitted to the Subcouncil for comment, specifically regarding the rental amount applicable to the sub-lessee.

ACTION:   PATRICIA VAN SITTERT
                  GERDA DU PLESSIS
                  ARDELA VAN NIEKERK