Gupta Saxonwold Compound: Only One Property Sells at Auction, Raising Questions About Disputed Valua
Johannesburg, South Africa - The highly anticipated auction of the infamous Gupta compound in Saxonwold today concluded with only one of the three disputed properties finding a buyer, highlighting the complexities and perhaps the lingering stigma associated with the family's former stronghold.
After seven years of legal battles, business rescue proceedings, and a mountain of unpaid municipal rates, the sprawling estate, once the epicentre of South Africa's state capture era, went under the hammer. However, only a single-storey home at No. 3 Saxonwold Drive was successfully auctioned off for R3.3 million, subject to confirmation by the business rescue practitioners. This figure is notably 40% below its listed municipal valuation of R5.54 million.
The other two, more substantial properties – No. 5 Saxonwold Drive, an eight-bedroom, three-storey estate valued at over R21 million, and No. 7 Saxonwold Drive, a hotel-like mansion with 17 en-suite bedrooms valued at nearly R37 million – failed to attract acceptable bids. While the contents of these two larger mansions were sold for R100,000 and R60,000 respectively, the properties themselves remain unsold.
Auctioneers Park Village Auctions, who facilitated the simulcast auction (physical and online), acknowledged the "understandable hesitation" from potential buyers. Clive Lazarus of Park Village Auctions noted that the controversial nature of the properties, coupled with their long vacancy since the Gupta brothers fled South Africa in 2018, and the significant municipal rates and taxes (up to R30,000 per month on some residential properties), were likely contributing factors to the subdued bidding.
"We had a great deal of interest leading up to the auction, but given the complexity and uniqueness of these properties, it's not unusual for a transaction of this nature to take more time," Lazarus explained.
The three properties combined have a municipal value exceeding R64 million. The sale is part of efforts to recoup funds for creditors of Confident Concept (Pty) Ltd, a Gupta-owned company that held the properties and entered business rescue in 2018.
This auction marks a significant, albeit somewhat underwhelming, step in the ongoing process of liquidating assets linked to the controversial Gupta family, who are wanted by authorities for various criminal investigations related to state capture. The properties, once symbols of immense wealth and political influence, now stand as a testament to the family's dramatic fall from grace.
The business rescue practitioners are expected to explore other avenues, possibly private tenders, to sell the remaining two properties, which could offer more anonymity for potential buyers and allow for further negotiation on price.
Bashajobz.co.za will continue to monitor developments regarding the sale of the remaining Gupta properties.