The Overstrand Municipality will no longer be buying the multimillion-rand sea-facing plot called Schulphoek in Hermanus,the Western Cape High Court heard on Tuesday.
Previously the municipality had made propositions to purchase the land for a group of people who allegedly illegally occupied it last year.
The current owners have decided that they want the people, who settled on the site that is valued at R36m, to be evicted so that they can “sterilise it” and finalise its sale for the development of about 200 residential units.
Advocate Lawrie Wilken said:”There were some commitments regarding the possible purchase of the land by the municipality, but this has fallen away.”
Wilken is representing the applicants, Cape Theme Parks and Cavcor CCl.
Wilken was speaking during an eviction application by the two entities who are major players in the property industry.
Last year, the issue of what was going to happen to the land resulted in street protests erupting in Zwelihle, a suburb close to Schulphoek.
Eviction attempts by the private eviction company, the Red Ants, boiled over into clashes with the police.
On Tuesday, Wilken said in spite of an interdict preventing further occupation, people were continually moving onto the land.
Last year, the municipality considered buying the property after numerous marches to its offices under the banner of “Zwelihle Renewal”. Since then, its leader, Gcobani Ndzongana, co-founded the Land Party that he now leads.
“They just don’t want black people living next to the sea,” said Ndzongana.