The City of Johannesburg (CoJ) has initiated a process to either renegotiate the lease or sell the land occupied by the prestigious Killarney Country Club (KCC), which has paid just R2 annually in rent since 1970. The decision, approved by the Johannesburg council on Thursday, follows criticism that the lease terms, described as an “apartheid inheritance,” are not market-related.
Located in the affluent Houghton suburb, KCC spans 111.6 hectares of city-owned land and boasts an 18-hole golf course, squash and tennis courts, bowling greens, and a restaurant. Established in 1903 as the Transvaal Automobile Club, it became a golf club in 1929. In 1970, the CoJ expropriated its original land for the M1 Highway, relocating the club to nearby erven under a 50-year lease at R2 per year. In 1992, the lease was extended to 2040, a decision now under legal challenge.
The council’s motion mandates a public participation process, as the property’s estimated value exceeds R50 million, requiring compliance with the Municipal Asset Transfer Regulations. An independent valuator will assess the market value, and the Joburg Property Company (JPC) CEO will submit a report within 60 days, evaluating whether the land is needed for municipal services and its economic or community value if sold.
Nomoya Mnisi, MMC for Economic Development, emphasized that the current lease, ending in 2040, does not reflect market rates. “The tenant is paying an amount not in accordance with the market value,” she said, noting the terms stem from apartheid-era agreements. Matthew Cook of the GOOD Party supported the process, arguing the land could serve public needs like low-cost housing or sports facilities, given its prime location. “You can’t find a backroom in Soweto for R2000 a month,” he said, highlighting the disparity.
The Democratic Alliance opposed the motion, with councillor Alex Christians calling it vague and lacking detail. He noted a 2011 resolution to lease the land at R1000 monthly with 8% annual increases, which Killarney Country Club claims it was unaware of and continues to joburg-property-company-to-reassess-r2-a-year-leases-amid-community-concerns/">pay R2 yearly.
Killarney Country Club President Darryn Faulds defended the club, stating the R2 rent was part of a 1970 deal where KCC assumed maintenance costs for the land, including a biodiverse wetland. He argued the club has maintained the property well, preventing issues like vagrancy seen in other areas, and indirectly boosted investment in Houghton. Faulds denied KCC is exclusive, saying its facilities are open to the public, though membership fees generate revenue. He acknowledged financial struggles, with the club last profitable 15 years ago due to high maintenance costs.
Faulds suggested KCC is open to renegotiating a higher rent or increasing advertising revenue for the JPC. He cautioned that selling the land could burden the city with maintenance costs if repurposed as a park, given the CoJ’s record of managing public spaces.
The public participation process will guide the council’s final decision on whether to sell or lease the land, balancing community needs with the legacy of historical agreements.
