[Editor's Note: A previous version of this article misnumbered the Richmond Park as 3 777 hectares of prime industrial land, instead of 83. We apologise for the error.]
Cape Town - A group representing the Richmond Park community, which has a heritage dating from the 1800s, have said that although they had a 99-year lease agreement with a property giant, they were penniless. They said the process was marred by maladministration.
The investor said their claims were untrue and has threatened legal action.
This week, Richmond Park’s newly appointed committee told Weekend Argus they had received no rental funds from the proceeds of developments built on a stretch of land along the N7.
In 2015, the families received R100 000 each and there were 401 claimants after the lease agreement with property investors Atterbury Property.
In 2014, after a Restitution of Lands Rights Act claim was approved, the community, who had been removed under the Group Areas Act during apartheid, got their land back.
Thousands of people were displaced to various parts of the Western Cape, including Atlantis. The community later formed a trust, the Richmond Park Communal Property Association (CPA).
Together with the property investor, the CPA became a 25% shareholder in the development.
Richmond Park, which is 83 hectares of prime industrial land, is home to major businesses, among them Takealot, KFC, PnP Mall, ACDC and Caltex.
The newly formed committee, headed by Henry Richards, said they were unhappy as they had sought a full forensic audit after the families had received only one payment in 2015, while development and rentals continued to spiral.
In a letter sent to the Weekend Argus, they stated their grievances.
“There has been a lack of proper guidance throughout the agreement process, and to this day there are no records of title deeds or financial statements.
“The CPA, now sold by Atterbury and Land Claims, has failed to effectively represent us, leading to further exploitation of our already vulnerable community. It became evident that Atterbury has capitalised on our disadvantage.”
Richards said that on August 9, 2024, they had delivered a memorandum and picketed on the land to get a message to Atterbury Property.
“Since then, we have not received any payments, with the last payment occurring in 2015.
“Atterbury is now claiming that we owe R4 million and is pressuring us to sign for a R10m loan, an egregious demand.
“This is in stark contrast to the original promise of R100 000 annually for the first 10 years during construction, followed by a 25% share of profits once the buildings are completed.
“We demand immediate access to annual audit and financial reports from the start of our agreement.
“As shareholders, we need to understand why we are being burdened with loans instead of receiving our entitled dividends.”
Committee member Lonn van Graan said they were certain that more than 30 businesses had been erected on the land.
Gerrit van den Berg, the head of developments for Atterbury, said the company had also been accused via social media of misleading claimants. He said the company had had numerous engagements with residents to explain the lease process.
He shared an email between himself, Richmond Park Development Company CEO Richard Glass and the committee after the memorandum was handed over.
The response said: “A number of people from Richmond Park are distributing inaccurate information and slander (via WhatsApp, TikTok and YouTube).
“Examples include that ‘65% of the Richmond Park CPA’s land has been sold’ and that ‘seven directors are getting paid on a monthly basis’.
“All of this is untrue. We will not hesitate to, on behalf of the company, take legal action against any individual (in their personal capacity) causing any harm to the business activities at Richmond Park.
“We have started to brief the company’s attorneys in this regard. I would strongly advise you and your followers to make sure that you have sufficient evidence before making any form of allegation.”
Bukiwe Cimela, of the National Department of Public Works and Infrastructure, said the department would respond in due course.
Emails and Whatsapp queries to Reggie Ngcobo of the Department of Agriculture, Land Reform and Rural Development were unanswered.