<\/p>\n
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.<\/p>\n
These include:<\/p>\n
The historic Carlton Centre in the Johannesburg CBD spanning 28 291m\u00b2 (land size, not overall gross lettable area);
\nThe 47 192m\u00b2 Durban Station precinct, which is home to retail giant Mr Price\u2019s national head office and the rail station managed by the Passenger Rail Agency of South Africa (Prasa)
\nThe 26 900m\u00b2 1 Anchor Way property in the Cape Town CBD\u2019s prime Foreshore area
\nThe Bloemfontein Golf Course and Club house;
\nThe land on which the Umlazi Mega City mall is built (JSE-listed SA Corporate Real Estate own the building on leased land).
\nTen other properties around the country [see full list lower down].<\/p>\n
Transnet confirmed the disposal plan in a government gazette filing on Monday.<\/p>\n
Read:
Transnet eyes R35bn funds
Joburg\u2019s Carlton Centre and Cape Town\u2019s 1 Adderley Street could be redeveloped<\/p>\n
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 \u201cthe first right of refusal to express interest in acquiring, utilising, leasing, or otherwise taking transfer of the said properties for public sector purposes\u201d.<\/p>\n
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.<\/p>\n
A detailed schedule of the 15 properties<\/p>\n<\/p>\n
Source: Transnet<\/p>\n
ADVERTISEMENT<\/p>\n
CONTINUE READING BELOW<\/p>\n
Carlton Centre precinct<\/p>\n
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.<\/p>\n
The precinct consists of:<\/p>\n
The office tower (68 000m\u00b2\u00a0of office space);
\nThe busy shopping mall;
\nSkyrink ice rink; and
\nThe Carlton Hotel.<\/p>\n
The office building has not been occupied since Transnet vacated the building before the Covid pandemic. The Carlton Hotel, once a five-star hotel that host international stars and presidents, has not operated in over three decades and is in a derelict state.<\/p>\n
Listen: Is there a future for the Carlton Centre?<\/p>\n
Transnet\u2019s first attempt to sell the 50-storey Carlton Centre building was in 2007.<\/p>\n
In 2022, Transnet Property \u2013 the property division of Transnet SOC Limited \u2013 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).<\/p>\n
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.<\/p>\n
This was part of its corporate strategy to optimise its portfolio and strengthen the state-owned entity\u2019s balance sheet.<\/p>\n
ADVERTISEMENT:<\/p>\n
CONTINUE READING BELOW<\/p>\n
After a number of bailouts granted to Transnet by National Treasury, government took a hard stance on the logistics operator and other SOEs.<\/p>\n
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.<\/p>\n
Read:
Transnet debt sale draws record demand, attracting R42bn in bids
SA turns to private capital to unlock R2trn infrastructure pipeline
Transnet bailouts? Government bends with R94.8bn more in guarantees [July 2025]<\/p>\n
View from the \u2018Top of Africa\u2019 \u2013 the 50th Floor of the Carlton Centre, May 2013. Image: AdobeStock<\/p>\n
Carlton Centre shopping mall, December 2008. Image: Nadine Hutton\/Bloomberg <\/p>\n
Carlton Centre shopping mall, February 2024. Image: Leon Sadiki\/Bloomberg<\/p>\n
While the government gazette filing by Transnet on the disposals highlighted that government departments, local municipalities or other state-owned enterprises would have \u201cfirst right of refusal\u201d to try to acquire or lease the properties, there are some instances where current leaseholders will have that option. This is likely applicable to both state and private players.<\/p>\n
For instance, Prasa may well opt to buy the Durban Station property, which has a rail station as well as retail, hotel and office space linked to it. It is unclear why Transnet still owns the property, when Metrorail (now Prasa) split from the Transnet group around two decades ago.<\/p>\n
Durban railway station from the top of Moses Mabhida Stadium, 22 June 2011. Mr Price\u2019s head office is part of the white buildings on the top left of the photo. Image: Hansueli Krapf on Wikimedia here.<\/p>\n
In a brief response to Moneyweb, SA Corporate Real Estate CEO Rory Mackey confirmed the group has a lease in place for the land on which its Umlazi Mega City shopping centre is built.<\/p>\n
ADVERTISEMENT:<\/p>\n
CONTINUE READING BELOW<\/p>\n
\u201cI can advise that, together with our joint-venture partner, we have a right of first refusal on any offer that Transnet wishes to accept in respect of the sale of the land leased to us and we would at that time consider exercising our right,\u201d he said.<\/p>\n
Commenting on the move by Transnet, Galetti Corporate Real Estate CEO John Jack said the Cape Town properties, especially in the Foreshore, are likely to receive strong interest from private developers.<\/p>\n
He pointed out major developments in the Foreshore, such as Amdec\u2019s Harbour Arch, and The Rockefeller.<\/p>\n
\u201cThe Foreshore property [1 Anchor Way] is perfect for development and you will see a lot of activity from the big developers\u2026 This site is a key access point to that node,\u201d he added.<\/p>\n
Jack cautioned that while government departments, local municipalities or other state-owned enterprises would have first right of refusal on the Transnet properties up for disposal, many simply do not have the money to purchase these properties. He said it would be in Transnet\u2019s interest to secure higher prices from the private sector.<\/p>\n
On the Carlton Centre property, Jack said it \u201csits at the top of the eastern boundary of the Ghandi Square development\u201d \u2013 led by private developer and Joburg CBD investor Gerald Olitzki.<\/p>\n
\u201cIt would need an operator like that to fill up the buildings properly,\u201d he added, noting that properties in the CBD are largely \u201cmade up of many smaller tenants\u201d unless the building is\u00a0occupied by a government department.<\/p>\n
Listen\/read:
The \u2018petrol\u2019 firing up the property market
Octodec still banking on the Pretoria and Joburg CBDs
Joburg\u2019s Jewel City set for further R1bn investment [Sept 2020]<\/p>\n
#Transnet #dispose #landmark #Carlton #Centre #Durban #Station #precincts<\/p>\n","protected":false},"excerpt":{"rendered":"
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