Porsche SA buys Kyalami for R205m

Johannesburg - One of South Africa’s oldest racetracks may be nearing the end of its racing days. The iconic Kyalami racetrack goes on auction on Thursday. Video: eNCA
Kyalami race track was auctioned off in less than two minutes to Porsche South Africa. The liquidation auction took place at Summer Place in Sandton on Thursday 24 July 2014. Video: eNCA
The iconic Kyalami Race Track has been sold for R205-million.

JOHANNESBURG - The Kyalami race circuit, which has hosted racing greats including Ayrton Senna, was sold at an auction for R205-million in Johannesburg on Thursday.

It was sold to a telephone bidder, on behalf of Porsche South Africa, in an auction lasting around one minute and 50 seconds.

Porsche SA spokesperson Christo Kruger said they are going to start with giving the track a revamp, "We are so glad that Kyalami can stay a race track and that motor racing can continue in South Africa."

In the future they may look at expanding with office buildings and moving their head offices there said Kruger.

Lot 25 of the auction Farm Bothasfontein, better known as Kyalami, is a 72-hectare property in Midrand.

The High Street Auction Co, conducting the auction, said previously that the Kyalami auction was the country's first race track auction.

Lead auctioneer of High Street Auction Co Joff van Reenen told eNCA.com that this is a big day for the company and the country.

"It’s broken the record for the highest auction in South Africa beating the record for a property in Knysna that was auctioned for R120-million a few years back."

There were at least seven registered bidders as this is one of the richest pieces of land in Johannesburg, "There were a lot of local developers interested -- next door there is a R45-billion development," said Van Reenen.

Last Thursday the company's joint managing director Lance Chalwin-Milton said in a statement that the auction would go ahead, following a court application seeking to prevent it.

Eleven applicants had contended that they had certain rights to the Kyalami track, but these claims were either waived by agreement or abandoned.

The court ordered that the auction could proceed, but the reserve price was revised to R200-million from R129-million.

The race track has hosted famous drivers, including Nigel Mansell, Alain Prost, and Senna.

Additional reporting Sapa

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