South Africa: Eskom Raises R76.1 Million in Non Core Property Sales

  • As part of its efforts to raise funds from the disposal of non-core property, South Africa’s state owned energy utility, Eskom, has announce the sale of two buildings to the Department of Human Settlements, Water and Sanitation, which will help relieve some of the accommodation pressures faced by university students and for social housing.
  • The sale of these two high rise office buildings in Kimberley and Johannesburg has raised R76.1 million for Eskom, part of Eskom’s approved strategy to responsibly dispose of non-core immovable properties.
  • In total, Eskom aims to raise more than R2 billion from the sale of non-core property.

These properties were previously utilised as regional offices, and staff have been moved to other locations as part of Eskom’s drive to optimise space and derive maximum value from its extensive property portfolio. The property disposal process is in line with Eskom’s unbundling process and its bid to raise capital.

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The Department of Human Settlements, Water and Sanitation has been given the first right of refusal on all properties with a residential potential, in line with government policy. The department will therefore convert the Kimberley Trust Centre, the tallest building in the Northern Cape city, and the 26-storey Regional Office in Johannesburg into residential housing units, which will assist the department towards meeting its mandate of providing social housing.

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In terms of the sale agreement the Kimberley building will be converted into social housing units to meet the demand for residential units while the Braamfontein building will enable the department to respond to the accommodation needs of university students in Johannesburg.

Eskom continues to explore similar opportunities in other areas where it owns non-core property stock. It is expected that sales of Die Wilge Flats outside the Kusile Power Station at eMalahleni and the Lephalale Stands near the Medupi Power Station will be finalised during the first half of the current financial year.

Other non-core immovable property is being offered for sale through the government’s process of property disposal.

Author: Bryan Groenendaal

Source: Eskom

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