The Galley Restaurant lease, situated at a 1 896 m² prime location on Fish Hoek Beach, went to the highest bid of R350 000 on Wednesday 2 October.
It was the second auction for the prime lease opportunity after a previous lease bid in November last year was deemed “non responsive
At the time, restaurant staff and owners of the Galley Restaurant protested against the lease going up for auction.
In a statement commenting on the auction of 45 City properties including the Fish Hoek lease last week, Mayco member for economic growth James Vos said due process would be followed to finalise the results.
“This auction is a key part of the City’s strategy to release land for private sector development. I believe no government should be a land bank, so we continually look for innovative ways to open land for new investment,” he said. “Our previous auctions led to many successful transactions, and it’s an exciting way to spark further development across the City.”
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Vos added that money generated from the auctions would be reinvested into service delivery. “This approach maximises underused land, driving long-term economic sustainability,” he commented.
20-year lease
On Wednesday’s live and online auction, the Fish Hoek restaurant site was advertised as a 20-year lease auction with the option of a 10-year lease renewal.
Before bidding started, a quick catalogue correction was made to correct the initial advertised erf size from 1 750 m² to 1 896 m², which consisted of a lease area of 1 294 m², a play area of 455 m² and a seating area of 147 m².
Bidders were reminded that the property lease area was specifically meant for tourism-related and restaurant purposes, with an expected occupation date of Tuesday 1 April next year.
ALSO READ | ‘There was an injustice’: Uncertain future for Galley restaurant in Fish Hoek after auction
As the opening bid of R100 000 started, current leasers of the property bid on the lease until R150 000. Minutes later, the highest bid of R350 000 was received.
According to the City, all bids received are subject to a 15 business-day acceptance period following the decision of the Immovable Property Adjudication Committee.
A total of 45 properties went on auction for sale and leasing last week.
“Not only will the sale and leasing of these properties generate revenue for the City to be used for the delivery of services, but the development and use of the sites will boost employment and Cape Town’s economy,” said Vos.
