South Africa’s millionaire market up for sale

Popular Cape Winelands market and wine emporium, Root44 in Stellenbosch, is going up for sale in an exclusive sealed bidding process this month.

Bids for the property open from 31 July, and final and binding offers close on 29 August. The sale is already drawing attention from local and international investors.

Root44 is a 5.1-hectare property located on the R44 between Stellenbosch and Somerset West, and is a well-known tourism market in the area, originally built to showcase the wares of surrounding wine farms.

The market is located on Audacia farm in Stellenbosch, a millionaire hotspot surrounded by sweeping wine estates, including the historic Rust en Vrede.

Its roots can be traced to big names such as billionaire banker Paul Harris, who co-owned the farm with farmer Trevor Strydom—the original backers of the market.

The site is now being brought to market by the original developers, facilitated by Galetti Corporate Real Estate.

According to John Jack, CEO of Galetti, the market is under pressure to source standout properties that appeal to both local and international investors, and Root44 has drawn a lot of attention from both.

“It has been both a Wine Emporium and a Tourism market where locals and foreigners alike come to experience the best Stellenbosch has to offer from both a culinary and viticulture point of view.

With over R200 million invested in the property since 2016, Root 44 has seen consistent foot traffic as thousands of visitors arrive each week for the bustling food markets, live music, retail stalls and family entertainment.

It also features a Wine Emporium, oyster bar, café and full restaurant, all framed by the region’s vineyards.

Jack said the site could easily become a flagship asset for a corporate brand or hospitality and tourism investor.

But this comes with a significant caveat: the property is not currently zoned for retail or hospitality, making it a tricky location to navigate, requiring approvals from the municipality.

Land use issues

According to Jack, the site has flexibility, in that it could be repositioned as a retail hub, boutique hospitality offering or a conference and events venue.

However, this would be subject to rezoning and approvals by the Stellenbosch Municipality.

Root44 has been mired in controversy over the past few years due to disputes with the Stellenbosch Municipality around land use rights.

According to the municipality, the original development was granted rights in 2009 to develop a small tourist destination to showcase wines from local farms, which would become the Root44 Wine Emporium.

However, in 2012, there was a further application to use the land for retail purposes. At the time, the Wine Emporium had not yet been established, so this was granted, becoming the Root44 Market.

In 2017, when the developers wanted to make the market a permanent feature, the municipality allowed this on condition that the original Wine Emporium plans be dropped.

The municipality was of the view that the facility could only manage one or the other, not both, with concerns that a larger facility would continue to develop into a commercial node, disrupting the rural surroundings.

According to the municipality, the developers disregarded this and continued to establish both facilities, opening the Wine Emporium in 2020—hence, the dispute.

As the development grew in popularity, more disputes arose, with complaints from the surrounding community about noise and the disruption of the peace becoming more common.

This background will be crucial for any investor considering a bid.

“The key here will be to work with the Stellenbosch municipality to deliver an asset that serves and promotes Stellenbosch as both a tourism and global wine destination,” Jack said.

Regardless, he said the site has huge potential to generate economic upliftment for the area and position Stellenbosch internationally.

Root44 photos