Billionaire business mogul Johann Rupert was dealt a major blow after his luxurious Leopard Creek estate lost a R1.3-billion property valuation dispute with Nkomazi Municipality in Mpumalanga.
The Valuations Appeal Board for the district of Ehlanzeni handed a significant victory to the rural municipality following years of litigation over the value of Rupert’s sprawling luxury estate bordering the Kruger National Park.
The Valuations Appeal Board, a statutory tribunal created under the Municipal Property Rates Act, has the power to hear disputes between municipalities and property owners about the values used to calculate municipal rates. The dispute stems from a 2018 decision by the municipality to increase the valuation of the estate, situated in Malelane, from R550-million to over R1.3-billion.
The 335-acre estate boasts luxury residential sites overlooking parts of the Kruger National Park, an 18-hole golf course designed by Gary Player, where wild animals roam, a clubhouse complex, and extensive recreational facilities.
In a ruling dated February 13, the board dismissed Leopard Creek Share Block Limited’s appeal and confirmed the municipality’s valuation recorded in the general valuation roll.
The decision effectively confirms the value of Portion 20 of the Farm Riverside 173 JU at R1.3-billion as of July 1, 2017.
At the core of the dispute is how the luxury estate should be valued for municipal rating purposes – a figure that determines how much the property must pay towards municipal rates.
Relying on expert evidence that focused largely on development and investment considerations, the luxury estate’s argument was that it ought to be valued at about R330-million. But the board rejected that interpretation, concluding that the lower figure did not reflect the market value required by law.
“Because the original general valuation value from 2018 and the value determined during the objection process fall within the defined range as indicated by market indicators, the Valuation Appeal Board reinstates the property’s value at R1.3-billion,” the ruling states.
The long-standing dispute reflects the dramatic rise in the valuation of the estate over the past two decades. The municipal valuation roll valued the estate at just over R33-million in 2008, which the municipality later flagged as grossly undervaluated. Later supplementary valuations increased the value sharply to more than R1.4-billion, prompting objections and appeals by Leopard Creek.
After negotiations during early litigation, the parties reached a settlement that fixed the value at R550-million for the period 2012 to 2014 and R750-million for the period 2014 to 2018. But the dispute resurfaced when a new general valuation roll introduced in 2018 valued the estate at R1.3-billion.
During hearings before the valuation appeal board, Leopard Creek relied on evidence from property developer David Nagle, chartered accountant Sam Hackner and veteran property valuer Norman Griffiths, who advanced a far lower valuation.
On the other hand, the municipality consulted professional valuer Derrick Griffiths, who testified that the correct approach to determining the property’s value is based on what a willing buyer would pay a willing seller in the open market.
The matter eventually reached the Supreme Court of Appeal, which, in November 2024, ruled that the earlier decision of the valuation appeal board had been flawed. The court ordered that the matter be reconsidered by a differently constituted valuation appeal board. That reconsideration has now resulted in the February 13 ruling confirming the R1.3-billion valuation.
Nkomazi Municipality spokesperson Cyril Ripinga said the municipality believes the ruling demonstrates that the law governing property valuations was correctly applied.
He said that the ruling would not change municipal revenue because the estate had continued paying rates during the litigation. “It must be remembered that they did not boycott the prescribed property rates of the estate. They continued paying as billed by the municipality,” Ripinga said.
According to Ripinga, the municipality has now been notified that Leopard Creek intends to challenge aspects of the latest decision.
Leopard Creek director David Roodt did not respond to Sunday World’s enquiry. However, his secretary confirmed they had received the email and said Roodt would be alerted of the follow-up call.
