Finally for sale: Large Sandton land linked to Gupta near Gautrain station

by MMC
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Gupta-linked property in Sandton goes to auction.

Gupta-linked property in Sandton goes to auction.

  • A Sandton property that is among SA’s most valuable is being put up for auction.
  • The property was controversially sold in 2013 to the Kgoro Consortium – majority owned by Gupta-linked Regiments Capital – for R280 million.
  • However, he was never paid and plans to develop the property failed.
  • For more financial news, visit Front page of News24 Business.

Part of a Gupta-linked plot of land in South Africa’s ‘richest square kilometer’ of Sandton is finally up for sale – several years after finding ownership from a Gupta-linked company in a remarkably favorable deal .

Norman Raad, CEO of Broll Auctions and Sales, which is handling the closed tender sale, highlighted its “fantastic position and zoning”, saying:

“The land was initially earmarked for the development of Kgoro Central, a 65-storey tower with a hotel, luxury apartments, an art gallery, retail and a restaurant, but these proposals came to nothing.

The three-hectare plot of land, used by the Gautrain metro as an easement, has been described as one of most valuable properties in South Africa.

Adjacent to Sandton Gautrain station, it is also close to the five-star Michelangelo Hotel and Nelson Mandela Square on the corner of Rivonia Road and West Street.

In 2013, the land was purchased for R280 million by the Kgoro Consortium, majority owned by Gupta-linked Regiments Capital, from the City of Johannesburg via a metro bond.

Cedar Park, part of the Regiments Group, was listed as the landowner. Cedars Park was not required to start making payments until it began to benefit from the development and, according to Rapport, he may never need to start making payments provided that you continue to rent accommodation rather than sell it.

Cedar Park principals are Eric Wood of Trillian; former Regiments CEO Niven Pillay; and President of the Regiments, Litha Nyhonyha.

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The company secured a R2.4 billion development bond and entered into a R150 million loan agreement with Vantage Capital for the Cedar Park Kgoro Gateway development on the property.

However, despite the favorable conditions, plans for a residential unit, hotel and art gallery fell through as Cedar Park was unable to meet its loan obligations to Vantage Capital which were due in 2018.

Ownership was also heavily contested between the City of Johannesburg and Regiments Capital.

At the same time, the city opened an investigation 2019 into the property for exceptional property rates and services, and the water was then turned off to the Gautrain station. At the time, Cedar Park owed the city more than R7 million for its services.

Cedar Park then applied to the Johannesburg High Court to restore water, but the application was rejected and the matter was struck from the court’s emergency roll in October 2019.

Cedar Park has since been liquidated after the courts rejected applications for business rescue in 2022. liquidation decision Regiments Capital was confirmed in August this year.

Today, Broll has high hopes for the property’s future prospects.

Raad believes the property will attract huge interest from property owners and developers, particularly from abroad.

“With a fantastic position and zoning, this is an opportunity for an investor to bring to life this dream of a highly sought-after live, work and play development,” he said.

The deadline for submitting offers is February 28, 2024.

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