By Sipho Masondo
THE Kat Leisure group purchased the Seaview Hotel outside Port Elizabeth for R15,4-million at a public auction attended by more than 200 spectators yesterday.
Kat Leisure chief executive Avril Kaschula, of Knysna, made the winning bid at the auction, conducted by McLaggans Nationlink.
The Kat Leisure group operates a number of hotels, leisure and entertainment establishments, including the Simola Golf Estate in Knysna, the Osner and Kennaway Hotels in East London, and the Garden Route Casino and Hotel. The group also recently won a licence to operate a casino in Queenstown.
Kaschula said it was still too early to say what the group intended doing with the hotel. “But we will come up with an exciting development and get started as soon as possible.”
He said the historical aspect of the hotel would be kept. “It will be integrated with the new development. We will probably keep the hotel element, but also introduce a residential aspect.”
The hotel previously belonged to Dutchman Bob de Ronde, who ran it through a company called Jewel of the Ocean Hotel (Pty) Ltd.
The property, which comprises the hotel itself, a hardware store premises and three separate erven, has been on the market for the past two years, but could not be sold because of various complications.
Between December 2004 and April 2005, De Ronde was involved in negotiations to sell the hotel to a Pretoria investor for R14-million.
In June 2005, a Pretoria businessman, Jan Faure, showed interest in the hotel and agreed to buy it. He took possession of the property and allegedly began selling off some of its assets before paying for it. The deal went sour and Faure was charged with fraud. De Ronde repossessed the hotel.
Faure was arrested in September 2005 and granted R8 000 bail. The Port Elizabeth commercial crimes court is still hearing his case.
The hardware store complex was auctioned off separately for R875 000. The three erven were auctioned off for R575 000, R660 000 and R712 000 respectively