Article on City of Cape Town land purchase unbalanced

Statement by Rashiq Fataar (Editor of Future Cape Town)

09 March 2012

We find the the article, “City’s R106m parking lot” which appeared online and in The Cape Times on 9 March 2012, to be unbalanced and potentially misleading, in light of the actual prevailing property market conditions and environment.

The R106 million paid for the undeveloped open-air parking site, as indicated in the article, must be considered alongside some of following facts, not mentioned in the article:

  • the nearby Foreshore land parcel, Site B, previously owned by the City of Cape Town, which obtained a market price of over R80 million, well above the estimated R60 million internal market price valuation
  • as per our source(s), the comparable price obtained for adjacent land parcels, at the undeveloped open-air parking site
  • market valuations conducted by entities and listed funds who own sites in the vicinity
  • the sale price obtained by the City of Cape Town for the nearby Virgin Active site located on lower Long Street (Erven 205 and 211)
  • the land price applied to the recent transaction for the site on which Cape Town’s tallest building, Portside, is currently being built and,
  • the view by some in the industry, that the Rode Property Report is becoming increasingly out of touch with the property market

In light of the above, we would discourage against unbalanced reporting which may potentially create unnecessarily negative perceptions, of a project which will enhance the economy of our region. We are confident that as with the transparency shown in previous land purchases and sales by local government, that this process, which requires the use of public funds, will be no different.

We wish the City of Cape Town, the Cape Town International Convention Centre, the Provincial Government of the Western Cape, and other parties involved in the expansion, all the success in their efforts.

Media Enquiries:

Media Office, Future Cape Town