George building collapse site to be auctioned in November

The 75 Victoria Street property of Neo Victoria Developments, where the tragic building collapse occurred on May 6 last year, goes under the hammer in November.

According to George Herald, it is being advertised for an online auction by Van’s Auctioneers of Pretoria. The auction will take place between 12:00 on November 25 and 12:00 on November 26.

Neo Victoria Developments is under liquidation.

Auction details

Chanel Tame, the administrator for the auction at Van’s Auctioneers, said the property’s market value is R6m.

“We are expecting between R2m and R3m, depending on what is going to happen during the auction. There is no reserve price on the property, but the sale is subject to confirmation by the seller.”

She added that if the sale is successful, the returns will be paid to the liquidators.

Van’s Auctioneers is advertising the property as a ‘great development opportunity for residential flats within the CBD and walking distance for public transport’ with approved building plans for a five-storey building with 42 flats and basement parking.

The zoning is General Residential Zone IV (flats, backpackers lodge, boarding hostel, retirement resort). The size of the property (Erf 15098) is 1 228m².

Local reaction

A local resident contacted the newspaper after seeing the auction advertisement, saying the development felt insensitive given the tragedy.

“On top of it all, the same plans might eventually be used. The right thing to do would have been to create a memorial site. It’s really a pity. It just doesn’t feel right.”

Municipal claims and regulations

George Municipality has a claim against the developer for R9.295m for rescue efforts after the collapse, which included infrastructure repairs, material removal and site safeguarding. The municipality’s comment about the auction is being awaited.

George Municipality communications manager Chantèl Edwards said since the property is privately owned, its use or disposal remains at the owner’s discretion. “The municipality is aware that the company has been liquidated and accordingly, the initial claim for recovery costs was withdrawn. Any outstanding municipal claims do not automatically preclude the auction from proceeding.”

She added that the building control division confirmed that any new owner will not be permitted to proceed with development based on the previously approved plans.

“According to building control, these plans are no longer valid and cannot be implemented without resubmission and formal re-approval by the municipality in compliance with the National Building Regulations and Building Standards Act [103 of 1977],” said Edwards.

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