The distress experienced in the leisure market is perfectly illustrated by a golf estate in the Mother City that is set to go under the hammer in mid-July.

Sitari Fields Golf Estate in Somerset West was placed under provisional liquidation in December 2009.

“It is a 185-hectare property alongside the N2 Highway, includes two hotel sites and a planned 18-hole David Frost signature golf course,” said Rael Levitt, CEO of Auction Alliance, who will be conducting the auction.

According to Levitt this is the first time that a golf course will be sold in the heart of the Cape Town metropole. “Whilst we envisage the property being sold to a new developer, who no doubt, will go on to great success, this liquidation is a sign of the times. Despite World Cup euphoria, the leisure market remains distressed and in the current market conditions, great deals can be picked up by second developers.”

Sitari Fields was planned as a Cape vernacular development with a golf school, 14-hectare private nature reserve, and a hotel with a conference centre. The property has approvals for 1,130 residential units, with a section zoned for a commercial and office centre and a wide range of other amenities. The golf estate was to be developed by Golf Data on what was known as the Vogelsang farm.

"This is not the first property development that has hit the wall in Cape Town as a result of the downturn in the residential leisure market, but it is certainly the biggest auction to date.”

The last three bankrupt golf courses, which were all sold by Auction Alliance, include the Riviera Golf Estate in Vereeniging, the Simola Golf Estate in Knysna and the Highland Gate Golf and Trout Estate in Dullstroom. In the first two instances, new property developers bought the estates and they went on to become successful redevelopments.

According to the auctioneers, who have been advertising the Sitari Fields Golf Estate sale since last weekend, there has been serious interest from golf estate developers from around the world, particularly Europe and the Middle East. “It is quite interesting that whilst the World Cup has not brought an avalanche of investors, there is now a growing trickle of enquiries from wealthy visitors who are taken in by the beauty and spirit of our country,” says Levitt.

He says he is not looking at the World Cup as a period to sell any high value assets, but rather as a time to whet the appetites of international investors who may well come back here after the games.

Levitt notes that Auction Alliance has had quite a few calls about Sitari over the last 10 days. “Despite a downturn in the leisure property sector, South Africa is still seen as a premier golfing destination and we will definitely see renewed interest from international investors focusing on our market once the din of the World Cup is all behind us."

The auction will take place on 15 July 2010 at 12:00 at the Crystal Towers Hotel & Spa in Century City.

For more information contact Rael Levitt on 082 777 0999.

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