Liquidated lifestyle estate sold for R63.25 million

Posted On Wednesday, 17 November 2010 02:00 Published by eProp Commercial Property News
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The economic downturn has seen the leisure property sector battle as several struggling golf and leisure estates have seen the auction block in recent months

Property-Housing-ResidentialSequestrated proposed lifestyle development Sitari Fields, situated close to Somerset West, is no exception.

The 185 hectare estate, which includes two hotel sites and a planned 18-hole David Frost signature golf course, recently went under the hammer where it was snapped up for R63.25 million by MSP Developments, Western Cape’s leading developer of large scale residential infrastructure developments, in collaboration with Mvelaphanda Holdings.

Given the size, location and prominent profile of the Sitari Fields development opportunity, MSP Developments has been closely monitoring this development prospect since 2008. 

“We were accordingly well pleased when the opportunity recently presented itself to acquire the property on an auction sale, conducted by Auction Alliance”, says MSP Developments CEO, Mr Riaan Roos.

According to Rael Levitt, Auction Alliance CE, this is the first time that a golf course development site has been sold in the heart of the Cape Town metropole.

“Its sale is an indication that there is now increased activity in the development market which has been dormant and depressed for some time now.

with the dark cloud of economic trouble having settled in over the estate it makes sense that this prime development could only be bought by a bidder with the resources and industry experience like MSP Developments.”

Sitari Fields was planned as a Cape vernacular development with a golf school, 14-hectare private nature reserve and 1 130 residential units.

The development in the Hottentots Holland basin also has a section zoned for a commercial development, offices and a wide range of other amenities. The golf estate was to be developed by Golf Data on what was known as the Vogelsang farm.

According to Levitt, an auction was scheduled for July but the zoning lapsed and liquidator, Chris Van Zyl of Progressive Administration, managed to get the zoning reinstated.

“Without the approvals for more than a thousand residential units, the 185 hectare site would revert to an agricultural zoning and value would have been substantially diminished.

Reinstating the approvals was a critical task, which the liquidators embarked on and resolved. This resulted in a successful and well contested auction sale.” says Van Zyl.

The Sitari Fields Lifestyle Estate will constitute the third of three large lifestyle estate developments within MSP Development’s current property portfolio.

''Sitari Fields has accordingly provided MSP Developments with the opportunity to extend our representation to incorporate the full spectrum of the Western Cape housing market, in as far as enabling MSP Developments to deliver a state of the art lifestyle security estate on a high profile location within the ever popular Somerset West area.” says Roos.

MSP Developments is currently also involved with the construction of “Belladonna Estate”, the first of its lifestyle estate developments (totalling 2900 units)for the lower end of the affordable housing market, located in Blue Downs, Cape Town.  

“Construction on the much acclaimed “Buh-Rein Estate” development, a 3511 unit lifestyle security estate for the middle income housing market, located in the Kraaifontein/ Durbanville area has also recently commenced” explains Roos.

According to the auctioneers, there was serious interest from international estate developers, particularly European and Middle Eastern investors, who are looking for distressed golf developments.

"It is quite interesting that while the World Cup has not brought an avalanche of investors, there was a growing number of enquiries from wealthy visitors who were taken in by the beauty and spirit of our country," notes Levitt. “Most heartening is that the ultimate buyer came from the Western Cape and knows the market well.”

"This is not the first property development that has hit the wall in Cape Town as a result of the downturn in the residential leisure market, but it is certainly the biggest and most successful auction to date." explains Levitt.

Last modified on Thursday, 12 June 2014 14:21

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