The Department of Public Works and Infrastructure has identified 24 state-owned properties across South Africa, valued at a total of more than R122 million, to be opened for a request for proposals from public and private parties.
This comes after the department's Minister Dean McPherson, KwaZulu-Natal MEC Martin Meyer and eThekwini Mayor Cyril Shaba signed a memorandum of understanding in Durban last month pledging to use public assets for the public good. I was disappointed.
The unveiling of the 24 properties, which have the potential for land renovation or new uses, marks a shift by the department from holding onto expensive properties that no longer serve any purpose, many of which are unused and dilapidated. It remains as it is. In some cases, they have even been hijacked.
The ministry released a document listing the properties. These include the former police barracks Excelsior Court in Durban, Wenda Presidential Palace in Polokwane, the former Home Office Building in Pretoria, Ramelna Court Flats in Bloemfontein and 104 Darling Street in Cape Town.
The total city valuation of 16 of the properties listed is just over R122.6 million, but eight of these have no city valuation.
According to the ministry, members of public and private organizations have until March 13 next year to “address how these assets can be used to ensure they contribute to the public good, foster job creation and add value to local communities. There is a need to make proposals. .
The department will assess these and consider which are viable before taking next steps, which could include granting long-term leases, entering into public-private partnerships or selling the property.
Mr McPherson said the publication of the list was a “milestone” for the department.
“We are inviting private and public role players of this scale to bring suggestions on how these assets can be leveraged to deliver real benefits to South Africans, whether through reuse or redevelopment. “We will fulfill that promise,” he said.
“This means that, where possible, countries can partner with the private sector to ensure that real estate can contribute to economic growth and job creation. I believe it will attract employment.
Macpherson said the decision signals a shift away from clinging to properties that have no use.
“By working with local and state governments, we are charting new directions for how national assets can be used to serve South Africans.”
Depending on the success of the current Request for Proposals process, additional properties will be considered for release as part of the program.
eThekwini Municipality and the KwaZulu-Natal Department of Public Works and Infrastructure are following a similar process of releasing unused real estate they own for public and private sector proposals.
Tender documents can be accessed here.
