Of the three properties that make up the Gupta compound in Johannesburg, only one was sold at auction on Thursday for R3.3 million. This sale marks the end of a seven-year legal battle involving business rescue proceedings and unpaid municipal taxes.
These mansions, which were once at the centre of the state capture saga, have stood vacant since 2018, when the Gupta brothers fled South Africa amid mounting allegations of corruption.
The combined municipal value of the three properties sits at over R64 million. The movable assets within the main home were sold for R100 000.
The epicenter of the state capture scandal, seven years on, the Gupta compound is finally open to the public. Today saw bidders vying for their chance to own one of the three infamous properties.
Only one property managed to secure a bid – the smallest of the three, used as staff housing during the Guptas’ time in residence, sold for R3.3 million.
Auction facilitator Graham van Niekerk says it is seen as the most viable for redevelopment.
“It’s the property with the most potential for somebody looking to buy a property, maybe upgrade it, flatten it, and begin from scratch. That’s pretty much what we expected to sell. The other two properties are very difficult, both of them. We used them as family residences. The zoning on the properties is residential one, which means that you could only really move a family and treat it as a home at the moment,” says van Niekerk.
The larger two properties, the main Gupta home boasting an indoor pool, and a third property with 17 en-suite bedrooms previously used to house guests, remain unsold. Van Niekerk says they are not surprised by the outcome.
“We didn’t really expect fireworks, as it were. So, we have had no interest in the auction regarding those two properties, but they certainly, when we go back to the business rescue practitioner, we will have a plan to dispose of these properties. We’ve had some interest from people not necessarily wanting to take part in an auction process, due to the nature of the properties, as well as the stigma attached to the properties. So, there is a plan B, and we will, in time, execute that,” van Niekerk explains.
With prospective buyers having to fork out R500 000 just to participate, Van Niekerk says the lead-up to the auction drew significant attention.
“The interest has been quite intense. So, it’s difficult to decipher which is just an interest because it’s an infamous property, and because of the nature of where it comes from, and what genuine buyers are. And I think that will be a process that we’ll have to go through to find out,” van Niekerk adds.
But the day was not without contention as memories of the Gupta legacy continue to linger; protesters gathered outside the property, calling for the return and prosecution of the brothers.
Video: Gupta Auction | Sale marks end of a seven-year legal battle
