Fish Hoek Beachfront Lease Controversy: City of Cape Town Awaits IPAC’s Decision on The Galley

In a move that could shake up the Fish Hoek property scene, the City of Cape Town is currently probing the validity of a 20-year lease for The Galley – a property that has graced the prime beachfront since 1987. After operating on a month-to-month basis since its lease expired five years ago, this beloved establishment’s fate hangs in the balance.

The auction, which took place in November last year, saw restaurateur Michael Townsend win the bid for R380,000. The transaction, however, is shrouded in controversy. It was later uncovered that Townsend, a prominent figure in the local hospitality industry, submitted the bid on behalf of the Kalk Bay Waterfront Development (KBWD) rather than his own business. This revelation comes with a layer of complexity as it was discovered that a prior agreement allowed Townsend to bid for both KBWD and his company, K2023, a subsidiary of Sweetheart of the Rodeo (Pty) Ltd.

The spotlight turned even more intense when discrepancies arose involving the bid number logged in the auction. Townsend bid with number 517, while the winning bid was inexplicably recorded under number 512, assigned to former KBWD director Roderick Bothman, further muddying the waters.

Further complexity was added when a legal letter from the City's attorneys pointed out that Townsend was not officially authorized to act on behalf of KBWD, clouding the legitimacy of the bid further and leading to the Immovable Property Adjudication Committee (IPAC) intervening. The matter is now pending a decision from IPAC, and the City of Cape Town advocates for a transparent resolution, possibly a re-auction of the property.

In the interim, Townsend has consolidated his power by purchasing shares from other KBWD shareholders, positioning himself favorably regardless of IPAC’s ruling. He adamantly defends his intent to sign the lease on behalf of KBWD and has expressed his determination to once again bid for the property should it go back under the hammer.

Amid the turmoil, both former director Bothman and the current leaseholder of The Galley, Mathea Eichel, have refrained from commentary. The tight-lipped approach raises questions about the dynamics at play behind the scenes of this coastal property tale.

As the City insists upon following due process, the local community and interested parties are left in wait for a resolution. Will the beachfront charm of The Galley fall into new hands, or will the status quo be maintained after the dust settles? This property dispute is yet another indicator of the high stakes involved when prime real estate and the complexities of city leases collide.