Green light for new Hermanus Conference Centre

Gerard Grobler

HERMANUS — The Overstrand Council has given in-principle approval to kick off a competitive tender for a brand-new, modern conference facility right in the heart of Hermanus, next to the current municipal auditorium.

The best news for locals? The entire project will be funded, built, and managed by private investment, taking zero cash out of the pockets of ratepayers.

Addressing residents following the decision, DA Mayoral Candidate and MMC for Infrastructure Services, Clinton Lerm, made the commercial terms clear:

“The venue will be built and managed by the successful bidder, not by the municipality. No ratepayer money will go into constructing or running it,” Lerm explained. “Instead, the operator will pay the municipality a monthly rental — a minimum of R83,000 per month. That figure is a floor, not a final price: the bidding process may push it higher, but it cannot go lower.”

Boosting Business Tourism

Hermanus has long lacked a dedicated, large-scale venue capable of hosting major corporate functions, national events, and business summits. The proposed development will feature a venue capable of accommodating around 600 delegates, complete with structured parking and an on-site coffee kiosk.

To clear space for the project, current municipal administrative offices occupying the site—including Human Resources, and Socio-economic Programmes—will be relocated. The final design will also incorporate the existing local banqueting hall and municipal auditorium into one seamless precinct.

What the Terms Look Like

• Zero Cost to Taxpayers: The winning developer covers all demolition, design, and construction expenses.
• 30-Year Lease: The winning bidder will secure a 30-year operational lease, along with up to two years of rent-free development time to build the site from the ground up.
• Guaranteed Municipal Revenue: Overstrand Municipality will collect at least R83,000 per month (escalating by 8% annually every July), earning revenue from municipal land while adding valuable infrastructure to the town.

Business Support

The proposal went through a public participation process mid-year with zero objections lodged by the community.

It also gained the strong backing of the Hermanus Business Chamber. In an official letter to municipal management, the Chamber hailed the initiative as a major win for the local economy. Beyond expanding the town’s event capacity, business leaders expect the influx of conference delegates to create new jobs and drive steady customer traffic to local hotels, guesthouses, restaurants, transport services, and shops.

Summing up the municipal strategy, Lerm noted: “This is exactly the kind of partnership our town needs — private investment that creates jobs and brings visitors, while the municipality earns an income from land it already owns.”