City Of Cape Town Auctions Virgin Active Green Point Site Lease
City Of Cape Town Auctions Virgin Active Green Point Site Lease. A 20-year lease for the entire Virgin Active precinct on Green Point Common in Cape Town is being offered for auction by the City of Cape Town on June 29th, 2023.
The lease for the massive indoor/outdoor fitness centre was taken over by Richard Branson’s Virgin Active 23 years ago after the liquidation of LeisureNet, the holding company of South Africa’s Health & Racquet Club. Ongoing investment in site upgrades totalling millions have subsequently turned Green Point Virgin Active into the global flagship of the group.
Greg Dart, Director of High Street Auctions that will be conducting the auction on behalf of the City of Cape Town, says the initial lease period of the 17 844m² spread will be for 10 years, with an additional 10-year renewal option available after the initial term. The hammer fall on the lease auction will be for the equivalent of one month’s rental of the premium site. “The winning bidder will be taking on a magnificent facility; unquestionably the best of its kind in South Africa both in terms of location and site improvements,” says Dart. “It should be noted, though, that the current lease holder’s fixtures, fittings, furniture and equipment will be removed. The lease on offer is for the immoveable property on the site.”
The more than 4 300m² building currently boasts a massive health and leisure centre. Under Virgin Active’s lease that expires on June 30th this year, it is divided into sections for: Weight training; a state-of-the-art cardio circuit; a riding studio; a wattbike centre; a functional training floor; Squash courts; a Mind & Body studio; Fitness class areas; a heated indoor lap pool; Saunas and steam rooms; a health food restaurant; Wi-fi chill zones; Expansive change/shower facilities; and an access-controlled children’s care space catering to kids under the age of seven.
High Street Auctions Associate Director Shawn van Jaarsveld says Virgin Active SA is aware that the lease is going on auction and if it is not the successful bidder, it will have to vacate the property once the City of Cape Town tenders the requisite three-month notice period, “Subsequently, the main building will revert to the ownership of the Council and it will thus retain ownership of this valuable asset for the people of Cape Town. The auction lease on offer is for a period of 10 years, with an additional 10-year renewal option available after the initial term. The lease will be a fully repairing/maintenance (triple nett) lease, with the lessee assuming responsibility for all tenant installations, insurance, maintenance, municipal charges (excluding rates and taxes), and other related expenses. The proposed draft lease agreement, which provides comprehensive details, is available from me.”
Dart says the City of Cape Town’s property auction will begin at noon sharp on June 29th in Business Lounge G on Level 4 of DHL Stadium (formerly known as Cape Town Stadium) in Fritz Sonnenberg Road, Green Point, Cape Town. “For bidders who can’t attend the auction in person, download the High Street Auctions app free from the App Store or Google Play. You can register for this historic lease auction on the app, watch the auction live and bid on the app in real time. Bidders from across the country, and indeed across the world, can compete for this global flagship facility via their smartphones.”
