Virgin Active South Africa came up with the winning bid for the recent lease auction held by the City of Cape Town for the Green Point site where the gym is currently based.

On Thursday, Council also approved the R3,7 million a month offer by Virgin Active South Africa, which the City says will be used for service delivery throughout the city.

The auctioning of lease opportunities is a relatively new concept so for the first time, the City of Cape Town used this option within the mandated competitive process aimed at opening the bidding opportunity up to a wider audience.

The response to the auction, with some six different gymnasium/fitness centre-focused businesses bidding, provided a competitive platform.

All bidders were mindful of the prime location continuing to provide a complementary sports option to the already award-winning Green Point Urban Park and DHL Stadium Precinct.

The MMC for Economic Growth James Vos says Virgin Active South Africa will be paying R3,7 million monthly, for the next 30 years.

The terms of the lease agreement are currently under negotiation and once concluded, the security of tenure will allow the successful bidder to re-invest in the facility, currently comprising a gymnasium, tennis courts, a volleyball court, an outdoor training area, indoor and outdoor swimming pools.

Vos says this ”smart real estate approach” to releasing City-owned property to get the best economic and social value out of its assets, that are not required for municipal purposes, is working.

I commend everyone involved in bringing this opportunity about and I wish the bidder every success and Capetonians much pride and joy when using the renewed flagship footprint in the years to come.

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