eThekwini Metro and the Ministry of Public Works and Infrastructure have signed a memorandum of understanding (MOU) to “optimize national assets” that have become eyesores, neglected crime dens.
Minister for Public Works and Infrastructure Dean McPherson, KwaZulu-Natal MEC for Public Works and Infrastructure Martin Meyer and eThekwini Metro Mayor Cyril Shaba signed the MOU in the city this week.
Mr. McPherson also announced a list of the first 16 buildings owned by the State Department, including housing and national and local utilities, and a request for proposals from investors will be published soon.
“This will give us ideas on how the private sector, other state agencies, and non-profit institutions can leverage these assets to truly benefit the people of eThekwini through reuse or redevelopment.” ,” McPherson said.
“The days of state buildings sitting vacant, attracting crime to communities and discouraging investment are over. The days of the state clinging to land it doesn’t need or can’t sustain are over. .”
Mr McPherson said the memorandum of understanding was a “historic moment” that marked a “major policy shift” that “gives truth to our vision of using public assets for the common good”.
“This is the first concrete step we are taking to restore this great city and restore it to its rightful place. Today we want to remind the city's residents that we have already spoken. “It shows that we are taking decisive action to unlock economic growth and create jobs for eThekwini and the wider KwaZulu-Natal region,” Mr MacPherson said.
“This is the first time in history that such an action has been taken, and it marks a radical change in ideology from what has been done before.
“We have decided to put aside our ideological differences and do what is in the best interests of the people of eThekwini and the greater KwaZulu-Natal area…This type of action is a new “It is possible in a spirit of cooperation and unity,” he said.
If the department can attract additional infrastructure investment to South Africa, grow the economy and create thousands of jobs, his department will become an “economic enabler” sector.
He said research by international organizations such as the World Bank, McKinsey Global Institute and the International Monetary Fund shows that a national effort to increase infrastructure investment by 1% can contribute between 0.4% and 3% to domestic economic growth. said.
eThekwini is “ripe for infrastructure projects.” The project can be implemented with the help of a grant and completed in conjunction with South African Infrastructure.
“Infrastructure South Africa has also developed an infrastructure pipeline worth more than R64 billion in the country, covering critical sectors such as housing, water, logistics and energy,” Mr McPherson said.
He said once state-owned assets start generating revenue, the ministry will have more funds available to maintain and build schools, hospitals and other critical infrastructure across the country.
buildings for reuse
Among the buildings identified for reuse is the historic public works building at 230 DR Pixley Kaseme Street. The police barracks is located at 29 Somtsev Street. The house at 347 Lillian Goy Road. Old Excelsior Police Station at 97 Peter Mokaba Road. Palm Beach Hotel, 106 Gillespie Street; Dokkies campus at 321 ZK Mathews Road and The Seaman's Institute building at 154 Mahatma Gandhi Street.
“Properties like the police barracks on Durban’s waterfront are no longer vacant and eyesores, but are being used by state agencies that need them, or by the private sector converted into housing. Imagine that,” McPherson said.
“The once-hijacked Excelsior Courthouse in Bellaire will no longer force residents to be held hostage in their homes, but rather build a modern housing development that will generate city rates and a building that will take pride of place in the community.” Imagine that.
“Imagine how many historic buildings owned by federal or state departments or cities are being restored and used by both public and commercial users through partnerships with the private sector.
“This is the first time something like this has been done in the public works and infrastructure sector and will soon be replicated across the country,” McPherson said.
He said the memorandum signals to the real estate sector and the private sector that the government is serious about “intensive private sector investment in national assets.”
“You will no longer see vacant and abandoned buildings that attract crime. Instead, you will see beautifully maintained public buildings used by the private or public sectors that drive investment and create jobs. “It's going to be like that,” he said.
A milestone for Durban and the country
Mr Shaba said the memorandum of understanding was an “important milestone” that gave practical meaning to the government's district development model, which shows what can be achieved by working together as “social partners”.
He said the ceremony was the culmination of several initiatives undertaken by the city to maximize public sector assets and foster economic growth. For example, the first real estate conference in April, which brought together national institutions, state and national departments, including eThekwini Metro. Public Works and Infrastructure, South African Passenger Rail Authority Transnet, Itala Bank.
Mr Xaba said there were 560,852 properties covering 246,000 hectares within the eThekwini metro jurisdiction, with a value of more than R709 billion.
The state, through the eThekwini metro, national and local utilities, owns 72,911 properties with Prasa and Ithala representing 13% of the total properties in the metro.
eThekwini Metro owns 53,516 properties covering 90,000 hectares. National utilities own 3,037 properties over 2,364 hectares, and state departments own 12,062 properties over 6,788 hectares.
Mr Xaba said the MOU signatories collectively own 68,615 properties, with an area of 99,152 hectares.
“In a real estate portfolio this large, some properties are considered surplus because they have no clear relationship to current and future service delivery requirements and are unused, underutilized or abandoned. “It is inevitable that the property could be stolen. This leaves it open to hijacking and illegal occupation,” he said.
Mr Shaba said this is why Metro has resolved to adopt an aggressive land release strategy in 2021, which presents a new approach to surplus land.
“Previously, Metro would wait for someone to take an interest in the land, which resulted in costs in terms of security and its upkeep, but with the new strategy, the land can be put to productive and maximum use. An exemption was brought in that it would be kept for,'” Shaba said.
Surplus land can now generate income, attract investment into the metro, improve and preserve municipal assets, ensure transparency in how real estate is disposed of, and achieve socio-economic transformation.
“We have identified a total of 149 properties for disposal, with 91 already sold or currently in the process of being sold.” [request for proposals]. Our target for this financial year is to release 50 properties,” he said.
“In September this year, we put 34 properties on the market and invited proposals from the private sector for the development and redevelopment of the properties. The call for proposals process is expected to conclude next month.”
Mr Shaba said the city had attracted a total of R2.2 billion in investment from successful bidders in the development of properties released to the public from 2021 onwards, creating more than 5 000 jobs during construction and 1 300 upon completion.
He said that from the 30 properties released in 2023, Metro has achieved:
• There was an investment of R1.9 billion, of which R1.6 billion was spent on the beachfront.
• 520 jobs will be created during construction.
• When completed, 629 jobs will be created.
• Gross rental income payable to Metro in the first year is R56.8 million.
“eThekwini Metro leverages our surplus and underutilized real estate to attract a total of R4.1 billion of capital investment into the municipality from the private sector, which is now being put to good use.
“The signing of this MOU confirms our commitment to strengthen our partnership with all sectors of government and the private sector to ensure that the government leverages the country's assets to foster economic growth. It also demonstrates our commitment to revitalizing our city and improving public safety,” Shaba said.
Durban Chamber of Commerce and Industry president Prasheen Maharaj said the chamber had been working with local government to revitalize the city center for many years.
“Most of the work that needs to be done has to do with urban management. Crime and dirt. Safety; cleanliness. It's about these bad buildings and poor sleepers that we're here to discuss today,” he said. Said.
“The current situation is [of eThekwini] That's enough motivation for the city, state, and country to realize that if these issues aren't properly addressed, the reputation of our beloved city can be destroyed.
“While we acknowledge the improvement in the Durban Business Confidence Index, we recognize that there are still certain challenges for services.If we wish to maintain the positive trajectory seen in the Business Confidence Index, Issues like these distressed buildings need to be addressed and as a company we are here to help. [the city]” he said.
