City of Cape Town clarifies plans for Three Anchor Bay site

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21-08-2025
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Bizcommunity.com
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The City of Cape Town has dismissed claims that a prime 4.5ha site in Three Anchor Bay will be used for an elevated train terminus, calling the reports "misinformation".
"The City is aware that some members of the public and residents have been misinformed into believing that the redevelopment project includes plans for a sky train. This is not the case," said the City’s Mayoral Committee Member for Urban Mobility, Councillor Rob Quintas. “The City is not planning on building a sky train as part of this development."
Quintas said the City has already invested in a road-based public transport system servicing the CBD and Atlantic seaboard in the form of the MyCiTi bus service, and that it is focused on investments that will improve existing services as this is more practical and cost-effective.
“Strengthening and enhancing the MyCiTi bus service remains a priority with investment in areas of highest demand, such as the metro-south east, where we are currently expanding the footprint to link commuters from Mitchells Plain and Khayelitsha with Wynberg and Claremont.”
The clarification follows in the wake of the City of Cape Town’s statutory Public Participation Process (PPP) for the proposed disposal of Erf 2187, Three Anchor Bay Road, Green Point, as described in its press release. In this context, the term ‘disposal’ is a legal/municipal designation indicating that the City is considering selling, leasing, or otherwise transferring ownership or control of Erf 2187.
Mixed-use potential
Valued at R680m by the City’s internal valuers in 2024, Erf 2187 extends from Three Anchor Bay Road in the West to the Fan Walk tree line in the east and includes the Colin Eglin Library and the Sea Point Civic Hall.
Located near the Sea Point Promenade, Green Point Urban Park, DHL Stadium and the V&A Waterfront, the site is ideally positioned for a high-density, mixed-use redevelopment.
The City of Cape Town’s Economic Growth Directorate said in a statement, “The intention [of the public participation process] is to test the market for a high-density mixed-use development, including a proportion of market-delivered affordable residential opportunities as part of the residential unit mix. Provision for a rail terminus is not being considered in the planning of the site.”
The Directorate went on to outline that the site falls within the Urban Inner Core of the Municipal Spatial Development Framework (MSDF), while the Table Bay District Spatial Development Framework (2023) earmarks the site as a new development area.
In a statement to BizCommunity, the City said, “This highlights the potential for high-density residential development, including affordable residential infill, linked to the site’s favourable public-transport accessibility and land-use integration opportunities along Green Point Main Road."
Prime redevelopment site
But concerns have arisen over whether the private sector will guarantee affordable housing development on the erf once the land is sold.
Independent urban policy researcher, Nick Budlender recently questioned whether the City was “paying lip service to affordable housing as a way of forcing through a development that is unlikely to include any genuinely affordable homes”.
The use of public land to build affordable housing in well-located areas is one of the simplest and most powerful ways of addressing Cape Town’s housing and segregation crisis, Budlender said.
Budlender added that - in the case of Erf2187 - he would be disappointed to see “another piece of public land with such transformative potential being lost to the private market”.
When BizCommunity questioned the City in writing about the type of affordable housing being proposed for the land, the City of Cape Town’s Economic Growth Directorate responded: “The Table Bay District Spatial Development Framework (2023) has identified the site as a new development area for potential high-density residential development, and suggests further investigation related to the high volume of affordable residential infill.
“In this regard, only high-density residential typologies, such as residential flats or apartments, are being considered.”
It added, “The draft development concept will be assessed by a Financial Feasibility Study to determine a reasonable proportion of affordable residential units that resonate with the market, while advancing the City’s socioeconomic objectives. Affordable housing is contextualised relative to the property dynamics and needs of the receiving environment.”
Integrated transport access
Once the “project receives in-principle approval to dispose of the site” as noted in its statement, the City plans to sell the land through a competitive bidding process to the open market.
“By unlocking this strategic site, we aim to create a vibrant, inclusive, and economically productive precinct that will generate new investment, support job creation, and expand the City’s rates base,” Alderman James Vos, Mayoral Committee Member for Economic Growth said.
“Importantly, this project is not only about building infrastructure, but also about shaping a sustainable future where business and public amenities come together to strengthen social and economic integration. It represents a key step toward sustainable urban growth, smarter land use, and the responsible management of City-owned assets to the benefit of current and future generations.”
The City went on to note, “The Three Anchor Bay Development Project will be fully integrated into Cape Town’s existing public transport network. The site is adjacent to the MyCiTi Atlantic Corridor, which already provides high-frequency, reliable services linking Camps Bay, Clifton, Sea Point, Green Point, and the CBD.”
Final comment opportunity
The statutory 30-day public comment period, which has been running from Friday, 25 July 2025, ends on Monday, 25 August.
The City says, “There is still time for the public to have their say in relation to the proposed sale of Erf 2187, Green Point, in terms of the Municipal Asset Transfer Regulations, Regulation 6.
“Submissions focused on issues such as land use, affordable housing, traffic, engineering services, heritage, and urban design will be most useful in shaping the next phase of planning.”
Submit comments to Development.threeanchorbay@capetown.gov.za. In-person submissions can be made at: 2nd Floor, Property Development, Desmond & Leah Tutu Building, 36 Harrington Street, Cape Town.
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