Six weeks on: No confirmation on Good Hope Centre auction sale
Spirit Revelation Ecclesia says it has purchased the Good Hope Centre following its R135 million auction.
Image: Bruce Sutherland
Six weeks after the City of Cape Town auctioned the Good Hope Centre for R135 million, no buyer has been confirmed and the sale remains subject to an ongoing audit and due diligence process.
The City confirmed it has not accepted any bids for any of the properties auctioned on February 26, including the Good Hope Centre, despite claims by Spirit Revelation Ecclesia that the landmark venue had already been purchased.
Mayco member for economic growth, James Vos, said the post-auction audit is still under way, with no set timeframe for its completion.
“The post-auction audit and due diligence process is currently under way.
“Given the complexity of the assessments, no fixed completion date can be confirmed at this stage," Vos said.
He added that no bid has yet been confirmed as valid or accepted, and none has progressed to an approval or award stage.
This leaves the status of the Good Hope Centre uncertain, despite earlier announcements by Spirit Revelation Ecclesia, also known as New World Faith Ministries, that it had secured the property for R135m.
Spirit Revelation Ecclesia did not responded to media enquiries by the time of publication.
Vos said the City would not comment on the status of individual bidders while the audit is ongoing, stressing that all bids are subject to the same vetting process.
He said the process includes checks on financial and technical capability, tax compliance, legal and regulatory requirements, as well as risk and reputational considerations.
The feasibility of proposed developments and compliance with the Municipal Asset Transfer Regulations will also be assessed.
The City had previously indicated, in a March 2 statement, that the post-auction audit and due diligence process would be conducted “in the coming weeks”.
However, it has since said no fixed timelines can be confirmed.
At the time, it said the audit would assess bidders’ tax status, ownership, financial compliance and whether sale prices met municipal valuation requirements, in line with standard post-auction procedures.
Only once this process is complete will qualifying bids be presented to the Immovable Property Adjudication Committee, followed by Council for final approval where required.
Vos said it was “too early” to indicate when ownership of any of the auctioned properties would be transferred.
“Transfer of ownership can only occur after the City has completed the due diligence process, accepted a bid in writing, concluded a binding sale agreement, and obtained all required approvals,” he said.
The City also declined to say whether any bids had been rejected so far, stating that determinations would only be made once the full process has been concluded.
For the Good Hope Centre specifically, any successful bidder will have to meet strict heritage and community access requirements as part of the sale conditions.
Vos reiterated that no binding sale currently exists, and that further updates will only be provided once key milestones in the process have been reached.
He said the process would determine whether any bids are ultimately approved and when, or if, ownership of the Good Hope Centre is transferred.