Phumelela
Gaming and Leisure’s defunct Arlington Racecourse in Eastern Cape’s Nelson Mandela Bay
has sold on auction for R25,7-million, to be redeveloped as a residential
estate.
The sale of the
embattled horseracing and tote-betting operator’s prime land around the country
forms part of their business rescue plan.
Ish Hendricks, group auctioneer at
Broll Auctions opened
bidding for the 62-hectare piece of land at R10-million and the price quickly
escalated to R19-million.
“It was a
three-man race, between a local Gqeberha (formerly Port Elizabeth) developer, a
Johannesburg investor and a Durban consortium,” Hendricks said.
The auction was
held in Gqeberha, with out of town bidders joining via video conferencing.
“The
hammer went down in favour of the Durban consortium, which has a large
commercial property portfolio in KwaZulu-Natal.”
Hendricks said market
expectations for the property, a centrally-located greenfields site which could
be used for either industrial or residential development, had been in the late
teens.
“We are satisfied that we have realised its true value with this sale.”
The auction was held at the Radisson Hotel in Gqeberha.
Business rescue
practitioner of Phumelela Gaming and Leisure, John Evans, said he was happy
with the outcome of the auction, which “presents an exciting opportunity for
the winning bidder”.
“The proceeds,
once received, will be distributed to creditors in accordance with the business
rescue plan,” Evans said.
