The discounted sale of this property reflects the significant long-term social and economic value the project will deliver to Retreat, including the establishment of a low-fee school in an under-served community. In determining the purchase price, the City considered not only the property’s market value, but also the lasting community benefits and broader public value the development will create.
The objective is to improve access to affordable education and deliver long-term social and economic benefits to the community, rather than maximise financial return. As a result, the disposal was therefore assessed in accordance with the City’s policy.
Council’s Policy on the Management of Certain of the City’s Immovable Property clearly sets out the circumstances under which City-owned properties may be disposed of at below market value.
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Section 15.2: if the City on account of the public interest, particularly in relation to the plight of the poor, intends to dispose of a non-exempted property for less than market value it must take into account the factors specified in Regulation 13(2) of the MATR. These factors are addressed in Council in-principle report.
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Section 15.3: subject to Council’s Section 14 Determinations and an In Principle Approval in respect of a specific disposal, (including taking into account the factors specified in Regulation 13(2) of the MATR, and without fettering Council’s powers to determine otherwise), the City shall dispose of social care properties at a purchase price of between 10% and 25% of fair market value subject to a suitable reversionary clause being registered against the title deed of the Property.
Subsequently, the applicant is a registered NPO.
Council’s in-principle approval does not conclude the process, it enables the next phase. Once approval has been granted, the Property Transactions Department will invite alternative proposals through a public and competitive process, ensuring transparency, fairness and compliance before any final disposal is considered.
Due diligence was conducted by the Property Transactions Department. The following documents were obtained from the applicant:
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A registration certificate from the National Planning Commission (NPC).
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Proof of registration with the South African Revenue Service (SARS).
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The need for a school in the area was confirmed by the Western Cape Education Department.
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Confirmation was requested from Apex Education Group to establish if the school is a member of the group.
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A Land Potential Assessment was obtained in favour of the proposed school.
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The proposal was circulated to line departments and no objections were received.
It is important to emphasise that the report before Council seeks in-principle approval only and does not constitute the final transfer or sale of the property. Should Council grant this approval, the City will undertake a comprehensive due diligence process and invite alternative proposals through a competitive process.
This process is designed to rigorously assess the viability and credibility of all proposals, verify the information submitted by applicants, and ensure full compliance with all legislative and policy requirements. No final agreement can be concluded until these requirements have been met and the Director: Property Transactions is satisfied that all conditions have been fulfilled.
Furthermore, the proposed disposal has been subject to the required consultation and public participation processes, with no objections received at any stage. The relevant subcouncil was notified on 30 October 2024 and raised no comments or objections. The proposal was advertised for public comment in the Cape Argus and Die Burger on 4 July 2025, and the public participation process concluded without any objections being received.
The proposal was also circulated to the relevant line departments, none of which raised any objections. In addition, the ward councillor has been kept informed of the proposal’s progress throughout the process.
This proposal was evaluated on its clear and measurable public benefit. It will deliver a low-fee school in an area where the Western Cape Education Department has confirmed a need for additional schooling capacity and expanding access to quality education for more learners. By offering school fees that are lower than those charged by many independent schools, the development will make quality education significantly more affordable and accessible to families who may otherwise be excluded.
At the heart of this proposal is the public interest. It will help meet a confirmed need for additional school capacity while expanding access to affordable, quality education in Retreat. By establishing a low-fee school with fees below those of many independent schools, this project will open the door to educational opportunities for families who may otherwise not be able to afford them.
