Production

Council’s approval of Killarney Raceway lease and Granger Bay development underpins economic growth

Statement by Alderman James Vos, Mayoral Committee Member for Economic Growth

Cape Town City Council, in its meeting today, has taken milestone decisions by approving leases that secure the socio-economic contribution of Killarney Raceway and unlock commercial development to compliment the Green Point common and stadium offering. The two significant property lease items, are the Killarney Motor Raceway and Erf 2189 in Granger Bay which is an integral part of the Green Point Common, tucked in alongside the DHL Stadium.

These transactions are yet again prime examples of how the Economic Growth Directorate team uses immovable property assets to underpin our economic and social recovery strategy.

Our strategic approach, where we actively seek to facilitate underutilised public assets for hospitality, business and community use, will gain huge momentum through today’s Council endorsement.

One of the cornerstones of this administration is sound governance and this is one of the main reasons Cape Town is able to attract significant investment that creates opportunities.

In particular, the Granger Bay site of some 7 000 m², packs opportunity beyond its modest footprint. The development of the site was offered by means of a public tender which proposed the long term lease of the erf in exchange for a market related rental.

Given the location of the property adjacent to DHL Stadium, within close proximity to the Green Point Athletic stadium, Green Point Urban Park, and various other sport facilities, and within walking distance to the V&A Waterfront, the City’s objective remains that the development and use of this property should contribute to this precinct and be a catalyst for commercialisation.

The property is ideal for retail and commercial development primarily related to sport, leisure and tourism with uses such as retail outlets on the ground level, hotel, medical suites, conference and exhibition facilities and offices which is regarded as consistent with the City’s objective for this property, given the significant investment and job opportunities.

Meanwhile, the Killarney site is the most used multi-purpose event venue in Cape Town with a pre-Covid total of 200 events per year, with 70 of those being charity events for worthy causes. It hosts a range of motor and motorcycling events for all people in the Western Cape, but also non-motorised sporting events like cycling, duathlons and marathons.

The sport contributes R357 million to Cape Town’s economy while supporting an extensive industry and thousands of jobs in race manufacturing, trading, servicing, repairs, parts and accessories. It also draws international and South African competitors, manufacturers, fans, and sponsors who come for extended stays and investments.

The financial benefit, in the form of long term rentals, will enable the City to exercise its mandate of providing basic services to communities in a sustainable manner and to promote socio-economic development across the metro.

Our mission as a City is to unlock economic growth opportunities that will allow businesses to flourish and jobs to be created. Transactions such as these help us to realise just that.

Source: City Of Cape Town