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PRASA to sell noncore properties

PRASA to sell  noncore properties

Photo by Bloomberg

6th March 2015

By: Megan van Wyngaardt

Creamer Media Contributing Editor Online

  

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The Passenger Rail Agency of South Africa (PRASA) has issued a request for expressions of interest from potential buyers for noncore properties, including vacant land and existing residential properties that it is planning to sell.

PRASA, through PRASA Corporate Real Estate Solutions (PRASA Cres) and subsidiary Intersite Asset Investments, owns a portfolio of 4 475 properties and 4 200 ha of land in Durban, Cape Town, Johannesburg and Pretoria.

In an emailed response to questions, Intersite commercial services executive manager Mthandeni Mntungwa tells Engineering News that the residential properties include old railway houses, which are vacant, occupied or informally occupied or vandalised.

“These houses were used by railway workers previously and some may still be in occupation, [but] these houses are located on unsubdivided land, which makes it more difficult to sell to potential buyers or current tenants,” he adds.

Mntungwa notes that the extent of vacant land that is available for disposal cannot be confirmed, as most of the land is unsubdivided or surveyed off the railway reserve or parent erf.

However, he notes that the “initial batch” to be sold comprises 25 860 m2, or 2.59 ha, subject to new additions, as “this is the first batch in a multiyear programme of disposals that PRASA will be embarking upon”.

“The potential and scope [for] developing these pieces of land have been explored and found to be limited,” he notes.

“Other well-located residential properties will be converted into sectional titles for sale or rental market,” he says.

Mntungwa says individuals and business entities could apply to buy the land. “We have, to date, received enquiries from developers, private companies and individuals.”

Interested parties have until March 4 to respond to PRASA’s request for expressions of interest.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

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