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South Africa\u2019s government plans to set up a new company to manage its vast property portfolio, worth an estimated R155 billion ($9.75 billion).<\/p>\n
President Cyril Ramaphosa is expected to announce the establishment of the firm, which will oversee about 88 000 buildings and five million hectares of land, in his State of the Nation address on Thursday, according to people with knowledge of the matter, who asked not to be identified discussing a confidential cabinet decision.<\/p>\n
Read: SA\u2019s real estate mystery: Government struggles to track billions in property assets<\/p>\n
Vincent Magwenya, the president\u2019s spokesman, declined to comment on the contents of the speech.<\/p>\n
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The plans for the new company are consistent with a decision by the nation\u2019s 10-party ruling coalition to retain a tight hold over most state assets and ensure they are put to good use, the people said.<\/p>\n
Listen\/read:
SA\u2019s property fundamentals \u2018much better than five years ago\u2019
New SOE proposed to manage government property
SA property sector seeing \u2018green shoots\u2019 \u2013 Standard\u00a0Bank<\/p>\n
Public Works and Infrastructure Minister Dean Macpherson first mooted the creation of a state property-management company shortly after he assumed office in mid-2024, to deter government departments from leasing expensive buildings from private companies rather that utilising those owned by the state.<\/p>\n
\u201cWe are going to create an asset book that is worth hundreds of billions of rands that could possibly be traded, could possibly be sold for equity, or can raise debt for social infrastructure,\u201d he said at the time.<\/p>\n
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Listen\/read: Macpherson: Poor performers will be blacklisted from state projects<\/p>\n
Bonginkosi Madikizela, a lawmaker who like Macpherson is a member of the Democratic Alliance party, said the government could save about R6 billion a year if it ended the practice of state entities leasing private buildings.<\/p>\n
\u00a9\u00a02026\u00a0Bloomberg<\/p>\n
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