New Restaurant Approved for Heads Municipal Property

14 December 2022

New restaurant approved for Knysna Heads Municipal Property

Standing empty since 2017, the municipal property at the Knysna Heads (previously occupied by Senza restaurant), is set to gain a new tenant. Successfully winning the bid to rent the property from Knysna Municipality for the next 20 years is Caroline 31 CC.

“The successful bidder aims to open an eco-friendly, fusion cuisine restaurant with an information kiosk,” said acting Municipal Manager, Roland Butler. “They will utilize the residential unit for tourist accommodation and provide skills development positions for interns.”

Caroline 31 CC will repair and maintain the building at its own cost and has been granted a six-month beneficial occupation period to do so. Thereafter they will rent this portion of erf 1406 at almost R15 000 above the market-related value. “Theirs was the highest bid received,” Butler explained. “A professional valuer determined that the fair and reasonable market-related rental value, if the property is to be run as a business, is R56 000 per month – and the bidder offered R71 258.54.” These amounts include VAT.

This agreement moves the municipality another step closer to securing a sustainable financial future. “It makes no financial sense to allow a prime property like this to remain unused,” he said. “This lease agreement not only generates much-needed revenue for Knysna Municipality, but a new attraction at this location is also sure to draw tourists and their associate spend to our town. Another important consideration is the local job creation that goes with the opening of a new restaurant.”

As previously advertised tenders to lease this property were canceled because none of the bidders met the requisite functionality criteria, a new tender was advertised in November 2021. After all relevant regulatory procedures had been followed, Caroline 31 CC was awarded the tender.

“This is good news on many levels,” Butler concluded. “The building will be refurbished, which will greatly improve its appearance. The proposed business will support the tourism industry and create local employment, both of which will stimulate our local economy. And the revenue generated will assist us in maintaining and creating new infrastructure, allowing us to continue providing service delivery to an inclusive, innovative, and inspired Knysna.”