Historic land exchange transaction confirmed between the City and National Department of Public Works and Infrastructure

The City of Cape Town’s Mayoral Committee Member for Economic Growth, Alderman James Vos, on Thursday, 11 December, led a historic signing of a Power of Attorney in favour of the National Department of Public Works (NDPW), with the Minister of Public Works and Infrastructure, Dean Macpherson. This signals the commencement of an exchange agreement process that will see the City of Cape Town and the National Government exchange ownership of key land parcels in the metro. Read more below:

The ceremonial signing follows the adoption of recommendations by Council on Thursday, 4 December, to transfer ownership of land in the Parliamentary precinct that is currently owned by the City in exchange for properties of equal value within Cape Town owned by the National Government, including portions of land within the Good Hope Centre precinct.

Additional properties of the NDPW are also being considered as part of the transaction to fulfil various municipal functions.

‘This is a groundbreaking effort that will mean the City can move with efficiency towards its proposed auctioning of the Good Hope Centre for redevelopment. And importantly, because the properties exchanged are of equal market value, neither government entity is incurring an additional cost. I firmly believe that our land portfolio must drive economic growth rather than sit idle, and this agreement sets the standard for how we will put our properties to productive, purposeful use,’ said Alderman Vos.

The total extent of the land to be transferred to the Department of Public Works and Infrastructure (DPWI) is approximately 7 846 m².

Minister Macpherson welcomed the transaction, noting that the acquisition of the land within the Parliamentary precinct allows the DPWI, as part of the National Government, to advance its plans for the future upgrading and development of this nationally significant site.

‘This transaction marks a significant step forward in strengthening intergovernmental cooperation between the National Government and the City. By securing the land within the Parliamentary Precinct, the Department of Public Works and Infrastructure can now move ahead with long-term plans to enhance security, accessibility, and the overall functionality of this nationally important site. We appreciate the City’s constructive partnership and look forward to continued collaboration as we work to deliver infrastructure that supports our democratic institutions and drives economic growth,’ said Minister Macpherson.

Alongside this transaction, Council has adopted a report approving the release of the Good Hope Centre precinct for restoration and redevelopment.

‘The property will go on sale through a transparent, competitive public auction expected in early 2026. Claremart, the City-appointed auctioneer, will oversee the process in full compliance with all the legislative and governance requirements. The revitalisation of the precinct presents a unique opportunity to unlock its economic potential and breathe new life into that part of the CBD,’ said Alderman Vos.

The City will provide further updates on the auction of the Good Hope Centre and other sites in due course.