The proposed redevelopment of the former De Mond Caravan Park in Voëlklip, South Africa, can move into the next stage after a High Court application challenging the site’s tender award and lease agreement was withdrawn on August 29, 2026.
The withdrawal removes a legal obstacle that had delayed the project since December 2024 and allows Point Caravan Resort (Pty) Ltd to begin submitting the town-planning applications required for the property. However, the withdrawal does not itself authorize construction or determine what will ultimately operate on the site.
“However, no development can proceed until the necessary planning approvals have been obtained and the required public-participation process has taken place,” said Edward Jantjies, acting municipal manager of Overstrand Municipality.
The legal challenge was filed in December 2024 by Ms. E. de Kock, who sought to have the tender award and lease agreement set aside. The application remained before the court for approximately 20 months before being withdrawn in August 2026. According to Jantjies, the litigation affected the developer’s ability to move forward with development expenditure while the validity of the tender and lease remained under challenge.
“During that period, Point Caravan Resort could not reasonably be expected to incur development costs while the tender award and lease agreement were being challenged,” Jantjies told the Hermanus Times. “The withdrawal now allows the company to take the next steps by submitting the relevant applications.”
The property has been vacant for more than a decade. Located near the Klein River Lagoon Mouth, the former caravan park has remained a longstanding concern for some Voëlklip residents because of its neglected condition and history of vandalism, illegal occupation, and other activity on the site.
The previous Caravan Park Association’s lease expired in 2012, and approximately 200 families had been evicted by 2014. Earlier attempts to establish a new use for the property also did not result in development. Atterbury Western Cape submitted an unsuccessful tender in 2010, while a lease signed with Crown Grant JV (Pohl Group) in March 2018 later lapsed after its suspensive conditions were not fulfilled.
The current tender process began when the municipality advertised the opportunity on July 29, 2022. Point Caravan Resort was awarded the tender on March 4, 2024, followed by the signing of a 45-year lease in July 2024. Overstrand Municipal Council approved the agreement on September 25, 2024.
The lease provides for monthly rent of R117,735.80, including VAT, and gives the lessee a two-year period to secure the necessary approvals and commence development.
For outdoor hospitality operators and developers, the project illustrates the importance of separating a successful tender or lease award from actual development authorization.
Planning approvals, land-use considerations, and public participation can remain significant steps even after a long-term lease has been secured. In this case, the next material milestone will be the submission of the relevant planning applications, which will initiate the public-participation process and provide greater clarity about the proposed use of the property.
“The Municipality will provide information on the proposed development once the relevant applications have been received and the public-participation process has been initiated. Members of the public will have an opportunity to comment once a valid land-use application has been submitted. That process is triggered by the relevant planning applications and must take place before any development can proceed. What may ultimately be developed and operated on the site will depend on the approvals obtained through the planning process,” Jantjies concluded.
