Property valuation of Leopard Creek Golf Estate disputed
South African billionaire Johann Rupert, the owner of Leopard Creek Golf Estate, disputed the municipality’s valuation of the lodge and appointed his own valuator. The municipality, in turn, appealed this valuation.
A drawn-out legal battle about a municipal property valuation roll query was served before the Supreme Court of Appeal (SCA) recently.
This time it was the Nkomazi Local Municipality (NLM) and the world-renowned Leopard Creek Golf Estate (LCGE) who are at loggerheads about the true value of the development. The LCGE currently allegedly owes the municipality millions of rand in property rates and taxes. Leopard Creek, stretching along the banks of the Crocodile River and bordering the Kruger National Park, belongs to the South African billionaire, Johann Rupert.
Also read: Leopard Creek appeals Nkomazi Municipality debt
The case in point is the NLM’s valuation for the 335ha property at just over R1.5b. Rupert and the Leopard Creek management team, however, disputed the valuation and appointed its own valuator. This valuation claims that the property is only worth R330m.
The NLM took the valuation of the Leopard Creek’s estate management on review to the Ehlanzeni Valuation Appeals Board (VAB). The board, however, found in favour of the NLM and agreed that the property is worth R1.56b.
The exclusive and luxurious estate not only has a world-class 18-hole golf course, famous for the Alfred Dunhill Championship, but a prestigious clubhouse and a lodging complex.
There are 97 residential stands, many of them boasting multimillion mansions belonging to the who’s who, among others, international film stars and business tycoons. The estate also has other sport facilities such as a swimming pool, a members-only gymnasium, squash and tennis courts and a beauty spa.
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The LCGE approached the Mpumalanga High Court last year for relief on the matter. At the time, Judge Brian Mashile set aside the VAB’s ruling, but granted the NLM permission to appeal his decision. He indicated that there were technical aspects around the valuation legislation and evidence presented by both parties on which another court might make a different ruling.
Cyril Ripinga, the NLM’s spokesperson, told Lowvelder on Monday the council’s legal team considered all options and then decided to indeed approach the SCA. The case was tabled before a full bench of five judges in the SCA in Bloemfontein last week.
After hearing the heads of arguments, the court reserved judgment.
Ripinga, who attended the hearing, says the municipality has already decided to take the matter to the constitutional court should the SCA make a finding against it.
“Our argument on valuation is actually quite simple. For what price would an owner of a property in Leopard Creek sell it to someone else?”
