A luxury villa, with a massive outstanding municipal bill, was supposed to be auctioned off in Cape Town later this month.
In a media release on Monday, Rawson Auctions said the property was valued at R32 million, but that the new owner would also have to fork out an additional R1.2 million to settle outstanding rates and taxes.
Councillor Johan van der Merwe, the City's Mayoral Committee Member for Finance, confirmed on Thursday that the property has outstanding debt of more than R1.1 million for rates, water and refuse. The amount includes interest.
"The account was handed over to the City's attorneys," Van Der Merwe said. "The sale of the property would result in the recovery of the outstanding debt."
However, on Wednesday, Rawson withdrew the property amid a dispute with the owner. Rawson says the company was instructed to auction the property by lawyers representing creditors. However, the owner of the property is disputing the sale.
According to deeds office records, the property was sold in 2007 to Europa Trust.
The villa sits on a 2,281m2 stand on 1 Victoria Road, and overlooks Llandudno. It is currently being used as a guest house and a spa.
The main house comprises four bedrooms, five bathrooms, a lounge, a dining room, two fireplaces, a modern kitchen, a playroom and indoor and outdoor swimming pools. There is also a second house with three bedrooms and a splash pool, as well as three one-bedroom cottages.
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