Kyalami, otherwise known as Farm Bothasfontein, will go under the hammer as scheduled on July 24, at 12:00, at Summer Place, in Hyde Park, Johannesburg, after 11 applicants failed to stop the auction, with a revised reserve price set at R200-million.
In June, auction house High Street Auctions said the sale of the world-famous racetrack was expected to be the country’s largest no-reserve auction.
High Street Auctions joint MD Lance Chalwin-Milton said in a statement on Thursday that the company had been advised by the attorneys representing the liquidators of Kyalami, that the advertised auction of Kyalami would proceed unhindered, "with the additional advantage of the removal of several encumbrances".
The court ruling, released on Tuesday, stated that the claims and onerous obligations of the applicants, who contended that they had certain rights in and to the Kyalami Race Track, were either waived by agreement or abandoned.
According to the court ruling, at least five court applications affecting the property involving “lease action”, “eviction action”, “pre-emptive right applications” and “action for fruits and damages for unlawful holding over” have been withdrawn, settled or abandoned.
Further, the alleged third-party development rights, rights to purchase, right to income stream, right to occupy and any other steps that would have had the effect of frustrating the property from being transferred, or the purchaser from obtaining vacant and unfettered possession, were irrevocably waived and abandoned.
“We are extremely pleased with these developments as it provides us with an unemcumbered asset for sale, resulting in a significant upside [for] the new investors in Kyalami, who may be interested in continuing to operate this valuable racing circuit or further developing the property,” said Chalwin-Milton, adding that now that the uncertainty surrounding the terms of purchase of the Kyalami property had been dealt with, finally, “we can proceed with confidence and mitigate several potential risks for the successful buyer”.
High Steet Auctions noted that it had received significant domestic and international interest in the 72 ha property, featuring the iconic South African race track. Owing to the interest that had been garnered and the large number of registered auction bidders for the property, the company believed that the increased reserve price of R200-million would be achieved.
The Kyalami property has seen world famous drivers, including Nigel Mansell, Alain Prost and Ayrton Senna, master the circuit of 4.26 km.
Chalwin-Milton added that, in addition to the auction of the race track at Kyalami, the advertised auction of 24 other commercial, industrial and retail properties scheduled for the 24 July event at Summer Place will also still go ahead as planned.