Transnet tasks independent auctioneers to sell its residential properties
State-owned freight utility Transnet will sell its residential properties through an auction process using independent auctioneers in the coming weeks.
This follows the utility garnering approval from government for an auction sale process of this portfolio in mid-2024, which comprises about 5 000 residential properties and 17 hostels across Johannesburg, Ekurhuleni, Tshwane, eThekwini, Nelson Mandela Bay, Cape Town and Mangaung.
The book value of its residential property portfolio is about R6.5-billion.
Transnet first had to navigate some complexities including properties that are occupied by people not employed by Transnet and housing blocks that were not subdivided.
The utility also plans to sell noncore commercial properties, including the mothballed Carlton Hotel.
The disposal of some of its noncore property portfolios is a strategic imperative for Transnet, to position the property division to focus on the commercialising of assets and maximising returns, particularly as the group works to generate more cash from its own activities and not rely on government bailouts.
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