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City to lease vacant land in Cape Town Stadium precinct

The City has announced plans to lease out a piece of vacant land in the Cape Town Stadium precinct. It intends to get council approval to start with the public participation process to manage the portion of erf 2188 for five years.

A report by the City’s economic opportunities and asset management directorate said: “The leasing of the land will relieve council of the maintenance burden and a market-related rental income will be generated.” The market-related rental value of the property is about R122 000 a month and the overall value of the property is R10 500 000. “The aim of this project is to leverage City assets through asset optimisation and rationalisation in order to stimulate economic benefit for the city.”

Newinvest 12 has been the lessee since 2000 and will continue until May next year. Newinvest further applied for a two-year and 11 months lease extension from June 2017 to May 2020, which was granted. It sublets the premises to McDonald’s. The lapse of the lease gives leeway for the City to issue a public tender for a new tenant. Last week, the Cape Argus reported that the City planned to lease the Cape Town Stadium for a mere R100 a year to a municipal entity created to operate and manage the stadium.

Mayco member for economic opportunities and asset management James Vos said: “The property was previously advertised for development proposals in 2015. The intention is to leverage City-owned assets through asset optimisation and rationalisation in order to stimulate economic benefits.. In addition, it will be better utilization of City-owned strategic assets as market related rental income will be generated,” Vos said.

Source: www.iol.co.za

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City to lease vacant land in Cape Town Stadium precinct

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