The facility that houses the flagship Virgin Active gym in Green Point, Cape Town, is being put up for auction by the City of Cape Town next week, in a historic first lease land auction of its kind in Cape Town.
The lease that Virgin Active has held since it took over the facility from the liquidated Health & Racquet Club in 2000 expires at the end of this month and the nearly 18 000m² facility with its tennis courts, indoor and outdoor swimming pools and more than 200 parking bays next to DHL Stadium, are going to be sold to the highest bidder on a 20-year lease basis.
The auction will take place on June 29th, 2023.
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.
Dart says the extensive outdoor facilities spread over 4 264m² are equally impressive. They include a second swimming pool, tennis courts, a volleyball court and an open-air gym – all accessible from some 200 parking bays that will be included in the auctioned lease.
“The property enjoys an Open Space 2 (OS2) zoning, specifically intended for sport and recreation purposes, making it ideal for a gym or sporting club.
“The location also couldn’t be better. Nestled alongside the DHL Stadium that is home to the Western Cape’s Stormers Rugby Team, the property is also surrounded by the Green Point Track, the Green Point Cricket Club, Hamilton’s Rugby Club and the Metropolitan Golf Club.
“The gym unquestionably enjoys the highest membership of any health facility in Cape Town with tremendous support from the locals, but a high percentage of national and international visitors also make up the numbers because it is close to the CBD, the V&A Waterfront, the Cape Town International Convention Centre and all the tourist hotspots on the Atlantic Seaboard.”
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.
Full details of the auction can be found on their website.
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