Vacant adjacent plot offers developer ample scope to expand recreational facilities
Developers from South Africa and abroad are lining up to bid on a business zoned site on auction in Clifton on October 8, which includes plans for what could become the only luxury hotel in the exclusive Atlantic Seaboard suburb and its first hostelry in some 40 years.
Plans for an 18-suite boutique hotel spread over seven floors above ground and a further three basement levels have already been drawn up for the 543m² site on the mountain side of Victoria Road opposite 1st Beach, according to High Street Auctions Director Rodney Beck.
“A major design feature of the hotel plan is a fully-automated parking garage for 21 vehicles, with seamless hydraulics performing an intricate ballet behind glass walls to shift luxury vehicles in and out as needed.
“A further 235m² have been incorporated into the plan for entertainment, dining and reception spaces, as well as back-of-house facilities. There’s also a retail element on the ground floor ideal for a coffee shop or private concierge lobby.”
Beck says years have been invested in planning and application processes to bring this unique hotel project to the point of fruition.
“The property has been rezoned to General Business 1, a demolition certificate has been obtained for the old cottage that remains at the rear of Erf 337 and excavation of the front portion has already begun.
“The Council has also granted approval for a portion of Erf 145, measuring 76m², to be sold to the owners of the adjacent Erf 337 for a price of R3.5 million, escalating at 8% p.a. from 1 September 2018. This portion must be consolidated with Erf 337.
“Although this acquisition is not compulsory, it allows the developer to build a bigger scheme with more parking and a larger footprint.”
Beck has also revealed that the new developer will for the first time have the option of purchasing a smaller vacant erf on the Apostle Stairs, adjacent to the right rear portion of the proposed hotel site.
“This lot has always been privately owned. It is currently zoned Single Residential 1, but the possibilities are endless for a developer looking to extend a hotel’s leisure facilities over an additional 455m².
“The chances of these two tandem lots ever coming to market at the same time again are slim to none.”
According to 2020’s SA Wealth Report published in April by New World Wealth, the stretch of Victoria Road through Bantry Bay and Clifton where the planned hotel site is located, is ranked as the most expensive street in the country, with pre-Covid real estate prices averaging out to around R80 000m².
The report also notes that Clifton as a whole takes top ranking as the most expensive suburb in South Africa.
Joff van Reenen, High Street Auctions Director and Lead Auctioneer, says it’s precisely this exclusivity attracting international investors’ attention to the virtual auction on October 8.
“Clifton is the French Riviera of the southern hemisphere. It’s a global hotspot to see and be seen, which doesn’t render it impervious to overall downward trends in the real estate sector but does increase its desirability as a safe harbour investment in very turbulent times.
“More encouraging still from a tourism investment perspective is that South Africa has emerged as the most sought-after international travel destination in the first post Covid-19 survey of its kind.
“It’s indisputable that our world has been changed by this pandemic. International borders are reopening, though, and people will travel again soon – perhaps slightly more selectively than before – but travel they will and Cape Town will reap the benefit.”
Van Reenen says the High Street Auctions mobile app can be downloaded free of charge from IOS and Android app stores. The auction live stream is open to public viewing, but only FICA compliant and registered bidders may participate in sales.
The next virtual auction will be streamed live from noon on October 8th. Visit www.highstreetauctions.com for more information.
1. Artist's Impression of the Proposed Hotel for the Business Zoned Site on Auction in Clifton - Lobby
2. Artist's Impression of the Proposed Hotel for the Business Zoned Site on Auction in Clifton - Automated Garaging
3. Artist's Impression of the Proposed Hotel for the Business Zoned Site on Auction in Clifton - Entertainment Area
4. Artist's Impression of the Proposed Hotel for the Business Zoned Site on Auction in Clifton
5. Victoria Road, Clifton, Business Zoned Site on Auction Highlighted in Red, Vacant Adjacent Site on Auction Highlighted in Yellow
6. 1st Beach, Clifton, Business Zones Site on Auction for Proposed Hotel