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Phumelela Gaming and Leisure’s defunct Arlington Racecourse in Nelson Mandela Bay has been sold on auction for R25.7 million.
The prime piece of land on the southern side of Gqeberha, below Walmer Heights, is to be redeveloped as a residential estate.
The sale of the embattled horseracing and tote-betting operator’s properties around the country forms part of its business rescue plan.
Ish Hendricks, the group auctioneer at Broll Auctions, opened bidding for the 62-hectare piece of land at R10 million and the price quickly escalated to R19-million.
Hendricks said it was a three-man race between a local developer, a Johannesburg investor and a Durban consortium.
“The hammer went down in favour of the Durban consortium which has a large commercial property portfolio in KwaZulu-Natal,” said Hendricks.
He added that they were satisfied that the true value of the property had been realised with this sale.
Phumelela Gaming and Leisure’s business rescue practitioner John Evans said he was happy with the outcome of the auction and that it presents an exciting opportunity for the winning bidder.
Evans said the proceeds, once received, will be distributed to creditors in accordance with the business rescue plan.
Earlier this month, Hendricks told Moneyweb that they expected the property to fetch more than R50 million.
Arlington, previously St Andrews Racing Club, was opened on 23 December 1950, by the then Mayor of Port Elizabeth, JCK ‘Boet’ Erasmus.
The last race was run in 2013.
