Sale and development of erf 36554, milnerton, cape town

Closing date: 21 October 2026 at 10:00 (South African time).

Site visit / clarification meeting: 28 July 2026 at 10:00, venue 13 Oyster Street, Annandale Farm, Cape Town. Not compulsory but strongly recommended.

Tender advertised: 24 July 2026.

Tender queries: [email protected] and [email protected].

Submission address: Tender Box Office, 2nd Floor (Concourse Level), Civic Centre, 12 Hertzog Boulevard, Cape Town.

Appeals and legal correspondence: City Manager c/o Manager: Legal Compliance Unit, 20th Floor, Tower Block, 12 Hertzog Boulevard, Cape Town; email [email protected].

POPIA queries: City Manager c/o Information Officer, email [email protected].

Supplier registration enquiries: 021 400 9242/3/4/5.

Submit a sealed envelope to Tender Box 189, 2nd Floor (Concourse Level), Civic Centre, 12 Hertzog Boulevard, Cape Town, before 10:00 on 21 October 2026. Endorse the envelope with tender number, title, name and address of bidder, and closing date. Include all completed returnable documents: Form of Offer and Acceptance, Certificate of Authority for partnerships/joint ventures, Declaration of Interest (State Employees), Conflict of Interest Declaration, Declaration of Past SCM Practices, Certificate of Independent Bid Determination, Authorisation for Deduction of Outstanding Amounts, and any required financial proof. A non-refundable tender fee of R200 applies only to hard copies. Late submissions will be rejected regardless of reason.

The evaluation uses a two-stage process. Stage 1 (Functionality): Bidders must score a minimum of 75 out of 100 across three areas to be declared responsive:

• Organisational Profile (10 points): Evidence of completed integrated mixed-use, mixed-income residential development (scored by number of units) and CV of Project Lead with at least 8 years' experience.
• Conceptual Development Framework (30 points): Scored on eight urban design objectives: spatial structure, open space placemaking, healthy/safe communities, streets as public space, intensity/diversity/adaptability, positive interfaces onto public realm, value green open spaces, respond to character of area, value to residents, and range of residential typologies.
• Financial Feasibility (60 points): Includes housing feasibility (number of residential opportunities, affordable housing percentage, long-term maintenance reserve) and development-wide feasibility (land price as % of CAPEX, DSCR) and whole-of-life robustness through sensitivity analysis.

Stage 2 (Price and Preference): The 90/10 price/preference points system applies. Price is scored using the standard formula. Preference points (max 10) are allocated for specific goals: >15% of total expenditure on designated items = 3 points; >10% up to 15% = 2 points. The bidder with the highest total adjudication points wins. A standby bidder may be nominated.

The City seeks a developer to purchase and develop Remainder of Erf 36554, Milnerton, at 13 Oyster Street, Annandale Farm, Cape Town. The development must be an integrated mixed-use, mixed-income neighbourhood. Bidders must submit:

• A conceptual development framework (A3 hard and soft copy) including site analysis, spatial vision, movement networks, land use distribution, open space hierarchy, and urban design details.
• A financial feasibility model showing capital costs, revenue streams, operating costs, funding structure, and residual land value.
• A minimum of 500 residential units is expected; scoring favours higher densities (up to >3500 units). Affordable housing must be at least 30% of total residential units; higher percentages earn more points.

The site has specific constraints: wetlands, N7 setback, Eskom servitude, and pipeline servitude that must be addressed.

The bidder must submit a comprehensive proposal document containing at least: (a) a conceptual development framework in A3 (hard and soft copy) addressing site analysis, spatial vision, movement, land uses, open spaces, urban design; (b) a financial feasibility model showing costs, revenues, funding, and residual land value; (c) an organisational profile demonstrating experience in similar mixed-use, mixed-income development.

Bidders must provide an organisational profile scoring evidence of prior completion of integrated mixed-use, mixed-income residential developments. The number of residential units delivered is scored. Additionally, a CV of the Project Lead must demonstrate at least 8 years’ experience as a development manager/director on similar projects of at least 500 residential units. Joint ventures must state which party handles which aspects.

The pricing schedule must include the land price offer, calculated as a residual value from financial feasibility modelling. The offer is scored as a percentage of total development CAPEX (excluding VAT). Lower percentages earn more points (<=8% gets full marks). Also required: demonstration of DSCR >=1.00, and a sensitivity analysis showing viability under four stress scenarios.

Bidders must demonstrate financial capacity to fund 25% of total development Capex (including land purchase) through any combination of:

• Balance sheet strength: provide audited or independently reviewed annual financial statements for the past 3 years (or since establishment).
• Debt funding: letter from a credible financial institution.
• Equity investment: letter of intent from equity partner plus their audited financials.
• Other verifiable source.

The land price offer must be calculated as a residual value based on financial feasibility modelling and submitted as a percentage of total development Capex (scored: less than or equal to 8% gets full marks). The Debt-Service Cover Ratio (DSCR) must be at least 1.00; higher ratios score more. A sensitivity stress test on four scenarios (construction cost +10%, revenue -10%, interest rate +200bp, programme delay 12-24 months) is required; viability under more stresses scores higher.

Mandatory compliance items:

• Registered on National Treasury Central Supplier Database (CSD).
• Registered on City of Cape Town Supplier Database.
• TAX matters in order with SARS (or foreign supplier exemption).
• No director/shareholder employed by the state (declared via SBD 4 equivalent).
• No conflict of interest or past SCM abuses.
• Certificate of Independent Bid Determination (SBD 9 equivalent).
• Authorisation for deduction of outstanding amounts owed to CCT.
• For joint ventures: copy of partnership agreement and certificate of authority.

Preference points are awarded under specific goals (not standard B-BBEE): for expenditure on local subcontracting/development targets (3 points for >15%, 2 points for >10% up to 15%), as defined in the Preference Schedule.

The tenderer must complete and submit the Occupational Health and Safety Agreement (Section C.3) as part of the tender submission.

The contract period is 36 months from commencement, mainly covering land transfer and development. The City may cancel the tender at any time before award if needs change, funds are unavailable, no acceptable tenders, material irregularity, or inability to agree pricing. The City is not liable for costs of cancellation. Termination of the resulting contract follows the General Conditions of Contract and CCT’s SCM Policy. Disputes are handled per MFMA Regulations; appeals under Section 62 of the Systems Act (within 21 days, with R300 fee).

In addition to the main evaluation criteria, note that the functionality threshold is 75/100 points. The three evaluation areas are: (1) Organisational Profile — scoring on completed developments and project lead experience; (2) Conceptual Development Framework — eight urban design objectives scored individually with a total weight of 30; (3) Financial Feasibility — housing feasibility and development-wide feasibility with a total weight of 60. Only bidders scoring minimum 75 proceed to price/preference evaluation (90/10 system). Preference points are for specific goals (expenditure levels), not B-BBEE.