In an auction held on Thursday, only one of the properties linked to the controversial Gupta family found a buyer, underscoring the significant stigma surrounding these assets.
The modest staff residence located at 3 Saxonwold Drive was sold for R3.35 million, while two opulent homes steeped in state capture-era notoriety failed to attract competitive bids, highlighting ongoing challenges in the property market linked to dubious ownership.
The auction, conducted by Park Village Auctions, saw a single R3 million offer placed for the six-bedroom mansion at 7 Saxonwold Drive, which initially had a starting bid set at R5 million.
In stark contrast, number 5 Saxonwold Drive, an expansive eight-bedroom, three-storey property, did not receive any bids at all. The stark reality was that municipal valuations for these prime pieces of real estate are considerably higher, sitting at R21 million for 5 Saxonwold Drive and R36 million for 7 Saxonwold Drive.
Auctioneer Clive Lazarus reflected on the results, stating, “We had a great deal of interest leading up to the auction, but given the complexity and uniqueness of these properties, it’s not unusual for a transaction of this nature to take more time.”
The hefty municipal rates associated with these properties—R19,186 for 5 Saxonwold Drive and R29,433 for 7 Saxonwold Drive, with monthly costs reaching up to R30,000—were likely factors dissuading potential buyers.
Both luxurious properties will revert to the business rescue process following the auction, necessitating a prolonged and strategic sales approach. Lazarus indicated that auctions are merely one component of a broader sales process aimed at ensuring transparency in transactions that attract notable public attention.
The failure to attract interest at auction highlights how the properties—previously synonymous with immense wealth and controversy—are now burdened by their history. The subsequent sale of movable assets from the premises saw contents of number 5 fetching R100,000 and those from number 7 bringing in R60,000, although both sales remain subject to confirmation.
Moving forward, Lazarus confirmed that the properties are likely to be made available through private tender, offering prospective buyers a chance to explore investment opportunities with added discretion.
“We will remain in discussions with the interested parties as we progress to the next phase. We are confident that we will realise these properties at realistic market rates,” he concluded.
sinenhlanhla.masilela@iol.co.za
IOL News
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