The failed textile company, established in 1965, was wound up in court earlier this year.

The industrial complex was sold as part of the liquidation and attracted strong interest, with eight registered bidders and about 30 people in attendance.

The auction, well publicised in local and national media, was conducted by Auction Alliance, the same company that recently auctioned Gonubie’s King’s Mall for R62 million.

Local developer Dean de Villiers – who has business interests in Gonubie, East London and King William’s Town, won the final bid, but was yesterday reluctant to comment on his plans for the 13 440m² site.

“The sale hasn’t been confirmed yet so, yes, I am happy, but I don’t want to divulge plans until I get a commitment from all the parties involved.”

Former Castellano-Beltrame chief executive Vic Beltrame said yesterday he had been hoping for a higher price, but that he could not comment further on the matter at this stage.

He said there was a two-week period until the final approval of the price. “Unfortunately, that’s all I can say right now.”

Asked his opinion on whether the R12.2 million price tag had been a fair one, Pam Golding Commercial principal Gwyn Bassingthwaighte said that auctions served to determine the current value of properties.

“Auctions are about establishing prices … because the value of properties (fluctuates).

"A couple of years ago, the factory might have been worth less, a couple of years from now it may be worth more.

"That’s the good thing about auctions: they establish the current value of a property.”

Border Kei Chamber of Business chief executive Les Holbrook had predicted earlier that the site would be easy to sell, and yesterday reaffirmed his position.

As for what the auction, and the end of the Castellano-Beltrame chapter, meant for East London business in general, he said: “Perhaps the biggest challenge is for the new owner to resist the challenge to break it up and convert it to small business units.”

“It would be much more ideal that one entity leased the property, ideally as a manufacturing building.”

Holbrook added that the factory could also be converted into warehouse space, being so close to Mercedes-Benz SA’s West Bank plant and the airport and harbour.

Auction Alliance’s Mike Bosch said yesterday he was satisfied that the auction had gone well.

“This property attracted considerable interest from local investors.”

He said. “The East London industrial segment has held its own over the years and this property represented a considerable investment. We are very pleased with the result.”