Given that the sale of this massive piece of land is imminent, and the site is likely going to be developed in a big way, I thought this site deserved its own thread...

Monday Apr 30, 2012

Durban's Clairwood racecourse to be sold for far more than municipal valuation

http://www.iolproperty.co.za/roller/news/resource/clairwood1.jpg

Gold Circle has received a R430 million offer for the Clairwood Racecourse from Joburg-based Capital Property Fund, a marked improvement on a previous offer made by Greek businessman Cosmas Cavaleros.

The sale of the land has been mooted since as early as 2006, but it now looks increasingly likely that a sale agreement for the 580 000m2 site in the South Durban basin will be concluded by the end of May.

Although valued at R183m on the eThekwini Municipality’s valuation roll, the strategic importance of the land and its proximity to the planned dig-out port at the old Durban International Airport would have driven up the price.

“There is a R430m offer on the table, which is an improvement on the last offer. It has to be ratified with our members, and we’ve called a meeting for May 21. If it is approved, it’s a matter of a few processes, but we expect the sale could be finalised within three months,” Gold Circle chairman Robert Mauvis said this week.

May 21 is just three days short of what would be Clairwood’s 91st birthday.

While Mauvis said he was unable to confirm who the new offer came from, the Tribune was told the potential buyer was Capital, a property company based in Rivonia, Joburg.

The first offer was made by Calshelf Investments 216 (Pty) Ltd, a subsidiary of the Joburg-based Cavaleros group, a privately owned property investment and development company with Cosmas Cavaleros as its chairman.

That first offer was reported in November last year to be in the region of R230m, but Andrzej Kiepiela of the KZN Growth Coalition, which brokered the deal, was later quoted as say the offer was actually about R350m up to R400m, depending on how long it took to conclude.

Capital Property Fund MD Barry Stuhler confirmed that the company was “in negotiations” for Clairwood.

“There is no deal signed as yet. If there is going to be a deal, it will only be at the end of May. We are there and we are in negotiations. It would be premature to talk about it now,” he said.

Capital has an extensive property portfolio, particularly in Joburg. The Crescent in Umhlanga is one of its properties.

While the offer is to go before all Gold Circle members at a special meeting on May 21, it doesn’t mean that the Capital offer is as good as signed.

“The opportunity is still available to the first bidder to come back (with a revised offer). There is time for that,” Mauvis said.

Transnet last week confirmed that a R1.8 billion deal had been struck with the Airports Company South Africa that would see the old Durban International Airport site converted into a dig-out port. Although still subject to approval from competition authorities, plans for the site are at an advanced stage and the first phase, with its R50bn price tag, could be completed as early as 2019.

This deal means that Clairwood is likely to be used for port-related activities, particularly in the logistics sectors.

Speaking to the Tribune this week, Kiepiela said the Growth Coalition’s interest in the sale was linked to the proposed development of the Durban International Airport site into a second port for the city.

“We support the idea that Clairwood will be used as an extension of the second harbour, so that Durban can become a logistical hub comparable to Singapore, Rotterdam and other major ports,” he said. But not everyone is happy. Environmental activist and member of the South Durban Community and Environmental Alliance, Desmond D’SA, has threatened a boycott of horseracing if the sale goes ahead.

“We have said before that Clairwood is the only green lung left in an area that is full of industrial and commercial activity.

“Gold Circle would be doing the community a disservice if they did sell the land for industrial use.

“If the sale goes ahead, we will campaign vigorously among punters, many who live in Wentworth, Newlands and surrounds, to boycott races. We will boycott the Durban July and the other big race meetings. They must realise that they cannot put profits before people’s lives,” he said.

Clairwood Racecourse is built on land that was originally a swamp and was opened on May 24, 1921. It is known as the “Garden Course” because of the fauna and flora.

Sunday Tribune


http://www.iolproperty.co.za/roller/news/entry/clairwood_racecourse_to_be_sold

I personally think this site is going to be developed into a massive logistics hub, given its proximity to the new dugout harbour. I feel for the residents, losing out on such a massive green space, but in all honesty, 57 hectares of grass is not really a 'lung' for an area. If it was hectares of forest and natural bush, I would also have major reservations about losing it. I think whatever is developed on this land parcel will only add to south Durban's status as SA's second biggest industrial hub, after Joburg. I just hope the eventual development is an industrial park, with storage, warehousing etc, and not petrochemical in nature, because then I would also have problems with such a development. Of course, even warehousing etc will bring much more traffic to the area, which will affect the residents even more than is currently the case.

as things stand, someone is trying to buy the land. they will then have to apply for development rights and change the zoning. its going to be a long process, but with the dig-out announcement all land in the south will shoot up in value, so expect alot more acquisitions in the months/years ahead.

logistics... minimal pollution impact...while the residents will protest, the planned usage suits the needs of the south and future harbour perfectly, while being low on environmental impact that any other form of industry on the site would have. Its impact is likely to be similar to that of a mall in terms of emmissions.



Decision made on racecourse’s futureMay 24 2012 at 10:25am
By Gugu Mbonambi

INLSA

Durban’s 91-year-old Clairwood racecourse site looks set to be transformed into a new warehouse and distribution centre to service the new dig-out port at the old international airport.

After months of speculation about the future of the racecourse, Capital Property Fund director Andrew Teixeira confirmed on Wednesday that the Gold Circle group had accepted his company’s offer to buy the racecourse for R430 million.

“We would like to develop a logistics park. With the dig-out port development our planning is around warehousing and distribution,” he said.

Teixeira said Capital Property Fund’s core business was property, so the racecourse had caught their attention because of its prime location next to the harbour and industrial area.

Gold Circle chairman Robert Mauvis said the sale had the blessing of its membership, although the deal still needed approval from the Competition Board.

However, the sale is also dependent on a successful re-zoning of the land and an environmental impact assessment, and local ratepayers and environmental groups signalled last night that the proposed new land use was likely to be opposed by them.

Mauvis said the racecourse would be leased to Gold Circle for the next two years as part of the agreement of sale, during which time the Greyville racecourse would be upgraded and improved.

“The track and condition of the Clairwood racecourse will of course be maintained during this period and we will move the stables. The two-year lease kickback works in our favour so that we can build new stables,” he said.

Teixeira said that after the two-year lease expired, it would take about a year for Capital Property Fund to fully develop the site.

According to the eThekwini Municipality’s development planning, environment and management department, the racecourse is zoned as “private open space”.

Unhappy

Mauvis said the application to the Competition Board could take between four weeks and three months to be approved.

“In my opinion, the transactions should all go through by the end of August. This is very exciting news for racing in the province… We will restructure the business and focus on two racecourses,” he said. The new stables would be built at the Summerveld Training Centre.

Gold Circle operates the Greyville and Clairwood Park racecourses in Durban and Scottsville in Pietermaritzburg. Mauvis said having three racecourses was no longer financially viable. “Having three racecourses is an expensive business; it is expensive to maintain a racecourse.”

The Clairwood property has been on the market for years. It caught the attention of developers because of its prime position near the South Durban Basin industries and the old airport.

Clairwood Ratepayers and Residents Association chairman Rishi Singh said it would oppose any industrial development on the racecourse site that added to the existing load of air pollution in the South Durban Basin area.

“The developers must consult residents before development takes place because the (South Durban Basin) is one of the most polluted areas in South Africa. Any development that involves carbon emissions would be detrimental to residents,” he said.

Singh said the association would also strongly oppose any development that attracted more trucks to the area and he called on the government to ensure that goods were transported via rail.

Desmond D’Sa, of the South Durban Community Environmental Alliance, indicated previously that the alliance would protest if Gold Circle sold the racecourse without consulting residents. The racecourse, built in 1921, was the only remaining large “green lung” in an area surrounded by petro-chemical and chemical industries.

Calshelf Investments 216, a subsidiary of Cavaleros, had offered to buy the prime plot for a price between R220m and R275m, depending on the time taken to conclude the deal.

But the Cavaleros group’s offer was countered by Capital Property Trust, a property unit trust established in 1984.

According to the company’s website, Capital Property Fund acquired Pangbourne Properties in March 2011 and has since become one of the largest property funds in SA, focusing on industrial and commercial projects. - The Mercury


http://www.iol.co.za/news/politics/decision-made-on-racecourse-s-future-1.1303769

Durban’s new warehousing precinct to help industrial land shortage
By SA Commercial Prop News

The 77-hectare Clairwood Racecourse was sold in the last quarter of 2012 to Capital Property Fund for R430m, and the group has plans for developing the land to meet the current needs in the area. The 77-hectare Clairwood Racecourse was sold in the last quarter of 2012 to Capital Property Fund for R430m, and the group has plans for developing the land to meet the current needs in the area.

Durban’s continuing shortage of flat land suitable for commercial and industrial use is preventing the development of major warehousing in the region.

Companies requiring access to the harbour, as well as close proximity to national road networks add another layer of complexity to the situation. But the development of the Clairwood Racecourse will bring viable opportunities that meet this need.

The last quarter of 2012 saw the sale of Clairwood Racecourse from Golden Circle to Capital Property Fund, who in turn will lease the 77-hectare Durban Racecourse to Golden Circle for a period of two years. During this time, Greyville Racecourse, also owned by Golden Circle, will be upgraded and operations will be moved from Clairwood to the newly renovated premises.

The Clairwood sale last year was negotiated by Galetti Commercial & Industrial, and achieved a selling price of R430m. John Jack, Director for Galetti, comments, “The greater Durban area is of huge strategic importance to many large corporates in South Africa, and Capital Property Fund foresaw an opportunity here.”

Capital Property Fund has ambitious plans in store for the site. Looking to capitalise on the new multibillion Rand Durban dig-out port that will be located near to Clairwood on the old Durban International Airport site, they plan to develop a mixed-use logistics park consisting of warehouse and distribution facilities.

According to John Jack, “ We believe the 5km proximity within the new Durban port will prove attractive to the likes of freight and logistics companies looking to base themselves within a convenient distance of port facilities.”

The Clairwood community is also set to benefit from these plans, with Capital Property Fund expecting the project to create jobs and improve security in the area. Special attention will be placed on attractive architecture, as well as constructing an environmentally sustainable development. This will ensure that no noise or harmful emissions will be emitted from the new logistics park.

Once completed the park will boast as much as 300,000sqm under roof space and potentially even more with clever planning. The logistics park will provide a modern offering at competitive rentals and Galetti anticipates a major focus in the wider area ahead, with more the more prudent investors acquiring property within the same precinct.

http://www.sacommercialpropnews.co.za/property-types/commercial-industrial-property/5890-durban-new-warehousing-precinct-to-help-industrial-land-shortage.html

This is going to be a huge project...

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Monday, 22 April 2013 11:28
Capital to convert racecourse into logistics park
Published by eProp@News

JSE-listed Capital Property Fund foresaw an opportunity when it acquired Clairwood Racecourse to convert it into a warehousing and logistics park, according to Galetti Commercial and Industrial, the brokerage firm that negotiated the transaction.

Galetti director John Jack said the greater Durban area "is of huge strategic importance" to many large corporations in South Africa.

The property’s 5km proximity to the new Durban port was expected to "prove attractive to the likes of freight and logistics companies looking to base themselves within a convenient distance of port facilities", he said.

Citing steep increases in the prices of quality properties due to heightened demand, Capital changed its strategy last year and shifted its focus to undertaking new developments, particularly quality industrial properties.

The fund focuses on industrial properties and offices, although it recently disinvested from its government-tenanted offices.

The fund acquired Clairwood Racecourse in the final quarter of last year for R430m from Golden Circle. The 77ha property will be renamed Clairwood Logistics Park. Capital is leasing the racecourse to Golden Circle for two years, giving it time to complete reacquired rezoning processes and acquire environmental approval for the development.

The fund has earmarked about 400,000m² of warehousing to be developed at a construction cost of more than R2bn.

Mr Jack said Durban had a shortage of flat land suitable for commercial and industrial use, which was preventing the development of major warehousing. Companies requiring access to the harbour and close proximity to national road networks added another layer of complexity to the situation, he said.

The logistics park would provide a modern offering at competitive rentals and Galetti expected a major focus in the wider area with more prudent investors likely to acquire property within the same precinct.

Capital MD Barry Stuhler said in January that "the feather in the cap" of Capital’s 2012 financial results was the Clairwood Racecourse acquisition.

Capital executive director Andrew Teixeira said at the time the fund had a large focus on A-grade warehousing and logistics properties primarily in Johannesburg, Durban and Cape Town.

Warehousing and logistics properties were where Capital saw "good demand", Mr Teixeira said, and its industrial portfolio had historically had the lowest vacancies.

Industrial properties make up about three-quarters of Capital’s portfolio by gross lettable area and 55% by book value. Capital has experienced strong tenant demand in areas such as Linbro Park, Longmeadow and Raceway Industrial Park.

Source: BD

http://www.eprop.co.za/news/item/15120-capital-to-convert-racecourse-into-logistics-park.html