JOHANNESBURG — A legal challenge threatens to delay construction of the $100 million Durban Film City, due to start in September.
Businessman Karamchand Gayadin has asked the local high court to review the sale of the beachfront site to producer Anant Singh’s Videovision Entertainment for $2.2 million, claiming it’s invalid as the purchase price was below the market value of $15 million. Complaint claims Giant Concerts, represented by Gayadin, put in a higher offer that was not considered.
The complaint was lodged June 10 but only recently came to light. No trial date has been set.
The development, which will provide three soundstages and post-production facilities, is supported by the Durban City authorities and the KwaZulu-Natal provincial government, which believes the complex will promote the production industry in the eastern coastal city and stimulate the local economy.
Plans for construction will continue while the court hears counterpetitions and legal arguments from all interested parties.
Durban-based Videovision Entertainment is also involved in the Cape Town Film City development. It has a 30% interest in the Dreamworld Film City consortium, which won the bid for the Western Cape-government supported development.
Singh said the film city will be operational by mid-2006 now that recent environmental objections related to unique wetlands on the site have been resolved.