Macpherson releases tenders for 24 state-owned buildings

The department of public works and infrastructure has identified 24 state-owned properties, collectively valued at more than R122 million, across South Africa, to be released for requests for proposals from public and private entities.

This comes after the department’s minister, Dean Macpherson, KwaZulu-Natal MEC Martin Meyer and eThekwini mayor Cyril Xaba signed a memorandum of understanding  in Durban last month committing to use public assets for the public good.

The release of the 24 properties for potential refurbishment and new uses for the land marks a shift for the department, which previously retained high-value properties that no longer served any purpose, many of which stand unused and dilapidated. In some cases, they have been hijacked.

The department has released a document listing the properties. Among them are the old police barracks Excelsior Court in Durban, the Venda Presidential House in Polokwane, the former home affairs building in Pretoria, Ramelna Court Flats in Bloemfontein and 104 Darling Street in Cape Town. 

The total municipal valuations of 16 of the listed properties amounts to just over R122.6 million, while eight of the properties do not have their municipal values included.

According to the department, members of the public and private entities have until 13 March next year “to make proposals on how these properties can be used to ensure that they contribute to the public good, help ignite job creation and add value to their communities”.  

The department will evaluate these to consider which are feasible before moving ahead with the next step, which could include granting long-term leases, entering into public-private partnerships or selling the properties.

Macpherson said the release of the list marked a “milestone” for the department.

“We will make good on our promise to invite private and public roleplayers on this scale to bring us proposals on how these properties can be utilised towards truly benefiting the people of South Africa, either through repurposing or redevelopment,” he said.

“This means that, where feasible, the state may partner with the private sector to ensure that properties contribute to economic growth and job creation. We believe these properties will attract significant investment and jobs through their redevelopment.

Macpherson said the decision signalled a shift from hanging on to properties, despite them serving no purpose.

“By working together with the municipality and the provincial government, we are charting a new course for how state-owned properties can be utilised to serve the people of South Africa.”

Depending on the success of the current request for proposals process, additional properties will be considered for release as part of the programme.

The eThekwini municipality and the KwaZulu-Natal department of public works and infrastructure are following similar processes of releasing unused properties they own for public and private sector proposals.
The tender documents can be accessed here.