In one of the longest property auction lots ever conducted in South Africa, the hammer fell at R3.7 million a month on Thursday [June 29th] for the Green Point Virgin Active site lease, concluding the most successful City of Cape Town land auction to date.

And as the winning lease bidder, Virgin Active will retain its occupation of the premises for the next 20 years.

Speaking after the auction at the DHL Stadium located alongside the gym site, Virgin Active South Africa Managing Director Jessica Spira said the team was pleased with the outcome.

“We’re very happy to have retained the opportunity to operate the gym and to continue to provide our loyal members with access to world class facilities at the Virgin Active Point Club.”

Thursday’s City of Cape Town auction saw 32 non-core municipal land parcels and houses across the Peninsula – including Mitchells Plain, Lansdowne, Newlands, Muizenberg, Strand, Khayelitsha, Kuils River and Delft – sold before the marathon lease auction began for the iconic recreation site in Green Point.

According to the City’s Mayoral Committee Member for Economic Growth, Alderman James Vos, the disposal by sale or lease of a carefully considered parcel of properties augments the City’s commitment to driving accelerated inclusive economic growth.

“The City’s Smart e-auction real estate approach to releasing City-owned property aims to get the best economic and social value out of its assets that are not required for municipal purposes.

“However, residents need to have a clear understanding that the sites that were auctioned by High Street Auctions were not the land parcels that the City is making available for affordable housing developments.

“The land parcels that the City designates for human settlement purposes are processed in terms of feasibility and packaging. I am working closely with the Human Settlements Department and Property Management Department to ensure that these sites are ready for disposal and development for the various types of housing schemes the City requires.”

Vos said today’s auction confirmed that it is the City’s mission to make land available for development opportunities for all Capetonians.

“Residents, local NGOs and the private sector all participated in acquiring properties that will become first homes, family homes, new businesses and better local community facilities and services for our City.

“Watching the live-streamed capacity auction it was also incredibly heartening to see such strong support for the City of Cape Town’s efforts to bring land opportunities and better services and amenities to the people of Cape Town with the help of the private sector.

“It was also wonderful to see bidders clapping for each other each time the gavel fell, showing the spirit of solidarity that drives our city.”

High Street Auctions Managing Director James Dall says this was a record turnout for a City of Cape Town land auction, with record registrations and record sales.

“The prices achieved, particularly on the lease auction, demonstrate that leases can be auctioned off successfully. The process is unequivocally powerful, transparent and more importantly, is fiduciary-compliant in a free and competitive market process.”

Dall says the number of online bidders also demonstrates massive national appetite for Cape Town property.

“We had bidders from across the country online and bidding fiercely.

“High Street Auctions and the City of Cape Town have delivered a premium service and result for the citizens of Cape Town with this auction.”

All auction bids are, however, still subject to a stringent final approvals protocol by the Council.