Porsche South Africa - Highest bidder of Kyalami

The Kyalami Racetrack has been sold for R205million to Porsche South Africa, who intend to preserve the property as a racetrack.

Yesterday saw South Africa’s first racetrack auction with the highest value received for High Street Auction Co, according to Joff Van Reenen, the lead auctioneer. The auction was held at Summer Place in Johannesburg.

Seven bidders were registered for the property, depositing a refundable R4million for participation in the auction.

As well as the racetrack being retained, the name will also remain to be Kyalami Racetrack. Van Reenen has also claimed to be pleased with the purchase price.

600 to 800 participants were anticipated for the auction.

Kyalami was put on auction due to Farm Bothasfontein, its holding company having been liquidated.

The auction arrived just upon a court application preventing the auction, as 11 applicants claimed of certain rights to the property. In terms of the court ruling released on 15^th July, claims were waived by agreement or abandoned. Therefore, the public auction proceeded unhindered.

At first, High Street Auction Co did not place an exact figure upon the race track, as the property’s sale value was described as impossible to predict. Furthermore, initially there was to be no reserve price (minimum price to be sold). However, the court ordered a reserve value of R200million.

Prior to the auction, it was awaited whether the buyer would either demolish and replace the racetrack with commercial or residential developments, or retain the property as a racetrack.

The auction was said to gain interest within South Africa as well as beyond, including from America, Europe and London. Interested parties ranged from racing enthusiasts aiming to retain the racetrack, to listed property funds considering development rights.

Kyalami Race Track was first established on the outskirts of Johannesburg in 1961. The property covers approximately 72 hectares, with the track having hosted racing heavy weights such as Nigel Mansell, Alain Prost, Ayrton Senna and Gilles Villeneuve who won the SA Grand Prix during 1979. The race track has a record of holding a total of 21 Grand Prix were held.

Today, the track is situated within the core of a commercial and residential development node. To be exact, nearby urban residential area, Waterfall City. The area is also flagged for the development of R3.5billion Mall of Africa, a shopping centre by Atterbury Property. This is anticipated to be a mixed use development hub with retail, residential and office space.