The 20-year lease for one of Fish Hoek’s prime beachfront properties, The Galley, could be up for grabs again.
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The City is questioning the legitimacy of the bid and has referred the matter to its Immovable Property Adjudication Committee (IPAC) for a decision, recommending the property be re-auctioned, as first reported by Yolande Du Preez. Yolande Du Preez.
The restaurant, a beachfront fixture since 1987, saw its lease expire in 2016 and has since operated on a month-to-month basis. In 2018, the City announced a competitive tender process for the lease. However, in November last year, it was auctioned as one of several properties across the metro. Restaurateur Michael Townsend won the bid for R380 000.
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Speculation arose when The Galley continued operations past its expected closure in May. It was revealed Townsend made the bid on behalf of the Kalk Bay Waterfront Development (KBWD), not his own business, K2023, a subsidiary of Sweetheart of the Rodeo (Pty) Ltd. Townsend, the largest KBWD shareholder, bid with number 517, yet the winning bid was recorded under number 512, registered to former KBWD director Roderick Bothman.
A letter from the City’s lawyers indicated Townsend was not authorised to represent KBWD, casting doubt on the bid’s validity. Despite multiple efforts to clarify, video footage and affidavits were inconclusive. The City maintains Townsend’s offer did not comply with its mandate.
Townsend said he and KBWD directors had agreed both entities would bid and that KBWD would sign the lease. Following the auction, stakeholders appeared content, but KBWD later objected. Townsend bought shares from willing sellers and awaits IPAC’s decision on whether he or KBWD is the legitimate bidder. If re-auctioned, he intends to bid again.
Former director Bothman and current leaseholder Mathea Eichel declined to comment, and the City, following due process, awaits IPAC’s decision.
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Picture: The Galley Fish Hoek / Facebook
