MEDIA RELEASE: Successful bidder announced for Clifton Precinctdevelopment

CITY OF CAPE TOWN

4 OCTOBER 2017

MEDIA RELEASE

Successful bidder announced for Clifton Precinct development

The City’s Immovable Property Adjudication Committee has awarded the tender for the development of the Clifton Precinct to K2015298271 South Africa (Pty) Ltd. The bidders were notified of the outcome of the bidding process on 28 September 2017. The proposed development will improve public access to the beach, ocean and recreational facilities as well as protect the natural vegetation, enhance local and international tourism potential, and unlock investment to drive job creation. Read more below:

The City of Cape Town advertised the tender for the development of the City-owned land between the Clifton bungalows and Camps Bay in March last year. Eight tenders were received by the closing date of 13 June 2016.

The City’s Immovable Property Adjudication Committee (IPAC) has awarded an approximately R1 billion tender for the development of the Clifton Precinct to K2015298271 South Africa (Pty) Ltd.

A thorough and rigorous supply chain management process was followed. This included a due diligence process conducted by external auditors. A statutory appeal period of 21 days is now under way, allowing those bidders who have been unsuccessful the right to appeal the outcome of the process.

The City-owned land between the Clifton bungalows and Camps Bay is approximately 16 ha in size, of which 5 ha has now been made available to the successful bidder for the development of:
• two pockets of single residential developments consisting of 52 residential stands
• a boutique hotel or serviced apartment site consisting of 3 500 m²
• a commercial component (restaurants and retail) consisting of 5 000 m²
• a mixed-use component (offices, studios, apartments) consisting of 2 250 m²
• an underground parking facility consisting of approximately 725 parking bays

Sections of the four erven located in this area will be sold and others leased for a period of up to 50 years. This means that sections of the land parcels will be developed and managed by the private sector as sustainable assets for future generations. The leased land will return to the City after the 50-year lease period has lapsed.

The successful bidder is, in terms of their contract with the City, required to deliver on the upgrading of the surrounding public infrastructure as follows:
• The Maiden’s Cove picnic area must be upgraded into a coastal park similar in stature to that of the Green Point Urban Park
• Victoria Road must be upgraded to improve the safety of pedestrians and cyclists
• Parts of The Glen trail and Kloof Road sidewalks must be upgraded to improve pedestrian movement and access
• The Clifton and Glen Beach steps must be upgraded and rehabilitated
• The Clifton Surf Lifesaving Club buildings must be rehabilitated

In addition to the above, the successful bidder must also provide new public infrastructure as follows:
• Construct a boardwalk between Camps Bay and the Maiden’s Cove coastal park in Clifton
• Construct a Bantry Point Caves boardwalk to give the public access to this part of the shoreline
• Redevelop the Glen Country Club clubhouse and recreational facilities

The cost of the investment in the upgrading of existing public infrastructure and the construction of new public infrastructure will be funded by the City.

The City will allocate at least 10% of the financial offer to affordable and inclusionary housing projects on well-located land in the inner-city.

The City-owned land between the Clifton bungalows and Camps Bay – inclusive of the Glen Country Club, Maiden’s Cove, a sports oval and garages for bungalow residents – is currently in a degraded state.

The proposed development will rejuvenate the surrounding area; improve public access to the beach, ocean and recreational facilities; protect the natural vegetation; enhance local and international tourism potential; and unlock investment to drive job creation.

The planning processes and required statutory public participation for the development of the site will take place in accordance with the Municipal Planning By-law and Municipal Finance Management Act.

End

Issued by: Media Office, City of Cape Town

Media enquiries: Councillor Brett Herron, Mayoral Committee Member for Transport and Urban Development, City of Cape Town, Tel: 021 400 1298 or Cell: 082 518 3264, Email: brett.herron@capetown.gov.za (please always copy media.account@capetown.gov.za)

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