City empowers residents with sale of land at R20 per m²
In line with the City of Cape Town's commitment to enabling opportunities through the empowerment of previously disadvantaged residents, Council today, 25 June 2014, approved the further sale of business-use properties in Gugulethu, Langa and Nyanga at a cost of R20 per m². Read more below:
Council has approved the further sale of 12 properties in Langa (1), Gugulethu (8) and Nyanga (3) as part of the City of Cape Town's efforts to alienate a total of 148 properties to those who were prevented from participating in ownership under the apartheid regime.
The City will sell these properties for R20 per m² (excluding VAT) to those in possession of valid lease agreements, or their successors-in-title, with the erstwhile Ikapa Town Council. The claimant (or tenant) will further make a contribution of R500 for transfer fees.
The balance of the transfer fees, amounting to R3 092 for each of the tenants and totalling approximately R457 704 for the 148 properties, is being subsidised by the City.
‘Enabling ownership is vital for the transformation of our economy. Owning an asset unlocks opportunities; it empowers and brings dignity to those who were robbed of the opportunity previously. This has been a long process but the outcome shows that progress is made possible when we work together towards a common goal,' said the City's Executive Deputy Mayor, Alderman Ian Neilson.
Prior to the inception of the Ikapa Municipality, the areas of Langa, Gugulethu, Nyanga and similar areas were controlled by various State departments. Any person could apply to lease business premises. Once authority was obtained for such a lease, the applicant was issued with a permit and became the legal tenant or permit-holder of the premises.
‘These tenants or their successors have been trading on these premises for the past 20 to 40 years. Freehold rights were previously denied to them. Becoming owners of the properties in question will allow them to obtain much-needed finance to upgrade their premises, thereby driving economic growth and sustainable development in the area,' said Alderman Neilson.
On 31 July 2013, Council approved the sale of a second batch of 69 sites in Langa (37), Gugulethu (26) and Nyanga (6).
On 29 August 2012, Council approved the sale of the first batch of 31 sites in Gugulethu (29) and Nyanga (2).
A total of 55 properties have thus far been registered in the names of the successful claimants (the former tenants) or their successors-in-title.
Statement issued by Cape Town Executive Deputy Mayor, Alderman Ian Neilson, June 25 2014
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