Hartebeesthoek hustle


Hartebeesthoek hustle

Over-valued land raises eyebrows over Tshwane’s questionable property purchases.

Tshwane Metro Municipality acquired a piece of bare farmland for R48 million after their internal valuator had already found it was only worth about R10m. This is the fourth such transaction that Noseweek has uncovered. All were bought at hugely inflated prices shortly before the ANC lost the municipality to the DA in 2016.

Our most recent discovery involves  the council’s purchase of the remainder of section 38 and section 124 of the farm Hartebeesthoek 303, located about 25km north of Pretoria city centre. The title deed shows that on 8 October 2015 the two portions, each covering 6.424 hectares and still zoned as agricultural land,were registered in the name of Tshwane Metro. The purchase price: R48m.

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Submitted by : P.R. on 2019-11-28 11:13:04
Dear Noseweek Team - Thank you for the detailed report researched by Susan Puren. I was involved in the marketing of residential properties in the eastern and northern parts of Pretoria for more than 40 years and the calculation of feasibility studies for different township developers. Why on earth would a purchaser rely on a valuation undertaken by the Seller?
If I would have followed the same approach I wouldn't have had a client any more and find their names in the insolvency notices in the news papers. The purchase price of R48 million recommended by Metse Mabeba and Nava Pillay is more than 4 times higher than the real value determined by Mankuroane Matseba for an amount of R10,5 million.
The three people involved (Mabeba, Pillay and Mothoagae) in this dubious transaction should be thoroughly investigated and be kept responsible for the loss of money if found guilty. The proposed zoning of 60 units/ha would result in a development of more than 2 storeys and in case of 1026 units of more than 3 storeys, presumably the last storey being a duplex flat. One should not forget that the purchase price of the ground is not the only factor but the amounts to be spent to acquire the necessary rights, endowments, contributions to bulk services, infrastructure and building costs must be added. A private developer who would have bought at that price could only use his loss afterwards for tax relief for future projects.

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