[Cape Town,16 September 2005] The Cape High Court handed down judgment today in respect of zoning rights for the development of the Victoria & Alfred Waterfront.

The original zoning agreement in terms of Section 13 of the Legal Succession of SATS Act was signed in 1993 between the City and Transnet Limited and has been applied for over a decade. It has formed the basis for the Waterfront’s evolutionary development since inception in 1989. However, in 2004, the Cape Town City Council  began to delay planning approval for certain projects that before would have formed part of this Agreement and would otherwise have been approved in the normal course of events. Council maintained there was a technicality about the validity of zoning agreement applicable at the Waterfront and that the Land Use Planning Ordinance (LUPO) should apply from here onwards. This had created uncertainty.

The V&A Waterfront then applied to the Cape High Court for a declaratory order to obtain clarity on the validity of the zoning agreement.

Today, the High Court ruled that the zoning that was in place in terms of the 1993 agreement should apply.  What this means is that what was included for planned usage in terms of this 1993 agreement would have force in law in respect of new developments at the Waterfront.

V&A Waterfront Managing Director Derick van der Merwe said that the company’s strongest desire was to continue building work on those developments that fell within the 1993 zoning agreement.

“The judgment fully substantiates our original contention that we have been doing the right thing all along. It gives us both clarity and certainty in respect of the future of the Waterfront. It has been a fair and transparent process and we have complied with the law throughout. This now clears the current deadlock once and for all.

“We have a number of large developments which are either in the pipeline or have already been awarded. All had been delayed pending the decision of the court. Combined, they are worth some R1-billion.

“These include the new One & Only Hotel, the Marina Residential, the extension of the Victoria Wharf, and the new parking garage amongst others. Also affected were plans for two new hotels.

“In working closely with the City, we will now be able to expedite as many of these long delayed new developments as soon as possible.”

ENDS

For further information, please contact Carol van der Spuy on 084 268 5513 or Tamra Veley on 083 251 3658.