Transnet looks to dispose of landmark Carlton Centre and Durban Station precincts

State-owned logistics and ports operator Transnet is to dispose of 15 immovable commercial properties that are not part of core assets under its ownership.

These include:

The historic Carlton Centre in the Johannesburg CBD spanning 28 291m² (land size, not overall gross lettable area);
The 47 192m² Durban Station precinct, which is home to retail giant Mr Price’s national head office and the rail station managed by the Passenger Rail Agency of South Africa (Prasa)
The 26 900m² 1 Anchor Way property in the Cape Town CBD’s prime Foreshore area
The Bloemfontein Golf Course and Club house; and
The land on which the Umlazi Mega City Mall is built (SA Corporate Real Estate own the building on leased land).

Transnet confirmed the disposal plan in a government gazette filing on Monday.

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In accordance with applicable legislation, governance protocols, and intergovernmental asset management principles, all national government departments, provincial government departments, municipalities, state-owned companies (SOCs), and other public entities must be afforded “the first right of refusal to express interest in acquiring, utilising, leasing, or otherwise taking transfer of the said properties for public sector purposes”.

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This means government departments, SOCs, and public entities have 30 days to file written submissions to express interest in buying or leasing the properties before opening the sale to the public.

A detailed schedule of the 15 properties

Source: Transnet

Carlton Centre precinct

Construction of the Carlton Centre precinct began in the early 1960s and was completed in 1973. At 223m high, the Carlton office tower is among the top three tallest buildings on the continent.

The precinct consists of:

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The office tower (68 000m² of office space);
The busy shopping mall;
Skyrink ice rink; and
The Carlton Hotel.

The office building has not been occupied since Transnet vacated the building before the Covid pandemic.

The hotel has not operated in over three decades and is in a derelict state.

Listen: Is there a future for the Carlton Centre?

The first attempt to sell the 50-storey Carlton Centre building was in 2007.

In 2022, Transnet Property – the property division of Transnet SOC Limited – issued two requests for information to the market to gauge investor appetite for its redevelopment plan of two prime properties: Carlton Centre in Johannesburg and 1 Adderley Street Precinct in Cape Town (which is not part of the latest proposed disposal).

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Attempts to revive or sell these and other properties under its banner have largely been unsuccessful, with credible private developers not keen to partner with Transnet following the state capture years.

This was part of its corporate strategy to optimise its portfolio and strengthen the state-owned entity’s balance sheet.

After several bailouts granted to Transnet by National Treasury, government took a hard stance on the logistics operator and other SOEs.

National Treasury issued Transnet with a multi-billion rand guarantee facility in late 2023, which came with strict conditions that require the entity to divest non-core assets, reduce its cost structure, and explore alternative funding models for infrastructure and maintenance.

Read:
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SA turns to private capital to unlock R2trn infrastructure pipeline
Transnet bailouts? Government bends with R94.8bn more in guarantees [July 2025]

View from the ‘Top of Africa’ – the 50th Floor of the Carlton Centre, in May 2013. Image: AdobeStock

Carlton Centre shopping mall, pictured in December 2008. Image: Nadine Hutton/Bloomberg

Shoppers inside the Carlton Centre shopping mall in Feburary 2024. Image: Leon Sadiki/Bloomberg

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