Clifton Villa dream gets the hammer treatment

HARD times have arrived even on South Africa's most exclusive street. A bank has ordered the auction of a sixbedroom mansion in Clifton, with a minimum opening bid of R50million. Property mogul Stuart Chait, who cofounded MvelaProp with Tokyo Sexwale and had a stake in stylish Melrose Arch in Johannesburg, said Sasfin Bank had been a partner in the development of the house, which has neverending views of the Atlantic Ocean. But now the bank considered it "too big an exposure on their books" and had decided "not to extend the loan". The house, with six bedrooms, eight bathrooms and an elevator, is on Nettleton Road often dubbed the most expensive street in the country where celebrities and oil barons frolic. It has been on the market for months for R150million. But upon Sasfin's instruction, House 3, as it is known, will be auctioned on November 24. Joff van Reenen, lead auctioneer and director of The High St Auction Co, would not.comment on the impasse. "A legal process is being followed and we've been instructed by the financial institution concerned," was all Van Reenen had to say. The Sunday Times has established that the home has whet ted the appetites of several wellheeled buyers from around the world. The auction is set to take place at Summer Place in Hyde Park and will be streamed live. "In order to secure our position, we already have a thirdparty offer to purchase from a willing and able purchaser, and we await their guarantees, which covers our exposure to the bank," Chait told the Sunday Times. "This is also underpinned by the reserve price at the auction. The bank, however, has a profitshare arrangement in the loan, and we can only assume that they are holding out for a higher price in order to realise their profit share. We also agree that it is worth more than the debt. "Houses in Clifton currently sell for R100 000R120 000 a square metre [measured as internal built area], and House 3 measures approximately 1380M2 internally, and 2 200m2 of total built space. "It is also unique as it is situated in Clifton's only gated estate, and is lateral in its layout. Properties in this area are in high demand and the market is strong. Recently, a property was sold nearby for R290million. "If Sasfin had elected to extend the loan and allowed the property to sell over this summer season, I'm sure we would have achieved our market value price of R150million, as houses at this price level generally take time to sell." Chait, the executive chairman of Land Equity Group, started his first business at the age of 18, selling cut flowers to retailers. According to the.company's website he has "built a strong and public track record of conceptualising and realising value in property". In an interview published by Business Day in 2005, Chait de tailed his plans to develop Nettleton Ridge estate. Clifton had the "most prestigious and expensive" property on the continent, he said. At the time he said the development would target some of the richest people in the world, including politicians, actors and business tycoons with a net worth exceeding R500million. "The purpose of aiming towards celebrities, sports stars, industrialists and the like is because there is a massive demand for security and privacy on the Atlantic seaboard and no other development can supply this," he said. Lew Geffen, chairman of Lew Geffen Sotheby's International Realty, said while the super luxury market, especially in the Western Cape, was still performing well, the time properties spent on the market had risen. "Holding out for an unrealistic price could prove costly in the long run if the home spends an inordinate amount of time for sale and it becomes stale," said Geffen. However, he admitted that Cape Town lured more international buyers because it offered "far more bang for buck than most other.comparable cities around the world". Sasfin spokesman Cathryn Pearman said: "We will not be able to provide any details. . . as Sasfin does not discuss private client relationships."