South Africa

Eskom raises R76m from sale of buildings

DURBAN - Eskom has managed to raise more than R76 million following the sales of two high rise office buildings.

Eskom said the buildings, situated in Kimberley and Johannesburg, were sold to the Department of Human Settlements, Water and Sanitisation and will relieve some of the accommodation pressures faced by university students and for social housing.

"The sales have raised R76.1m and is part of our approved strategy to responsibly dispose of non-core immovable properties. In total, Eskom aims to raise more than R2 billion from the sale of non-core property," Eskom said.

It said these properties were previously utilised as regional offices, and staff have been moved to other locations as part of its drive to optimise space and derive maximum value from its extensive property portfolio. The property disposal process is in line with Eskom’s unbundling process and its bid to raise capital.

Eskom said the Department of Human Settlements, Water and Sanitation has been given the first right of refusal on all properties with a residential potential, in line with government policy.

"The department will therefore convert the Kimberley Trust Centre, the tallest building in the Northern Cape city, and the 26-storey Regional Office in Johannesburg into residential housing units, which will assist the department towards meeting its mandate of providing social housing.

In terms of the sale agreement the Kimberley building will be converted into social housing units to meet the demand for residential units while the Braamfontein building will enable the department to respond to the accommodation needs of university students in Johannesburg," Eskom said.

The service provider said it will continue to explore similar opportunities in other areas where it owns non-core property stock. It is expected that sales of Die Wilge Flats outside the Kusile Power Station at eMalahleni and the Lephalale Stands near the Medupi Power Station will be finalised during the first half of the current financial year.

Other non-core immovable property is being offered for sale through the government’s process of property disposal.

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