30-year lease of a 5,712m² municipal site to develop, manage and maintain a conference facility. Successful bidders will fund and deliver the development and run its ongoing operation and maintenance.
Overstrand Municipality is inviting tenders for the long-term lease, development, management and maintenance of a conference facility on a portion of Remainder Erf 4565 in Hermanus. The site covers approximately 5,712m², and the lease period is 30 (thirty) years. Under this arrangement, the successful bidder takes on the full lifecycle of the facility, from design and construction through to daily operation and upkeep, rather than purchasing the land outright. The municipality retains ownership of the land and receives lease income for the duration of the agreement.
The scope covers three core areas: development, which includes planning and constructing the conference facility; management, which covers the commercial and day-to-day running of the venue; and maintenance, which requires the upkeep of the buildings and grounds over the full 30-year term. Bidders should expect to demonstrate financial capacity, technical and development experience, and a credible operating model. Detailed technical specifications, evaluation criteria, and contractual conditions are set out in the bid documentation, which must be obtained from the Supply Chain Management Unit and used as the sole basis for submissions.
The tender will be evaluated using the 90/10 preference point system under Overstrand Municipality's Procurement Policy. Tender documents are available in English from the Supply Chain Management Unit at 1 Magnolia Avenue, Hermanus, on weekdays during office hours, or electronically free of charge. Hard copies cost R150.00. Sealed tenders must be deposited in Tender Box No. 4 at the municipal offices by 12:00 on 15 December 2026, and will be opened publicly immediately after the closing time. Late or non-compliant submissions should be avoided, as strict adherence to the bid conditions will be required.
This tender suits experienced hospitality and conference venue operators, events management companies, property developers, and facility management firms with the capital and technical capacity to develop and run a large venue. Construction companies, investment groups, and consortia that combine development finance, construction, and operational expertise are also well placed to apply, particularly those with experience in long-term public-private lease arrangements. Small businesses may be suitable as part of a joint venture or consortium but would need the financial strength to meet a 30-year commitment.
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