Rupert loses R1.3bn valuation battle against rural municipality

Municipality to increase the valuation of the estate, situated in Malelane, from R550-million to over R1.3-billion.

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The 335-acre estate boasts luxury residential sites overlooking parts of the Kruger National Park, an 18-hole golf course designed by Gary Player, where wild animals roam, a clubhouse complex, and extensive recreational facilities.

In a ruling dated February 13, the board dismissed Leopard Creek Share Block Limited's appeal and confirmed the municipality's valuation recorded in the general valuation roll.

The decision effectively confirms the value of Portion 20 of the Farm Riverside 173 JU at R1.3-billion as of July 1, 2017.

At the core of the dispute is how the luxury estate should be valued for municipal rating purposes - a figure that determines how much the property must pay towards municipal rates.

Relying on expert evidence that focused largely on development and investment considerations, the luxury estate’s argument was that it ought to be valued at about R330-million. But the board rejected that interpretation, concluding that the lower figure did not reflect the market value required by law.