September 9, 2003
By Tshepiso Mogotsi
TEN inner city buildings are to be sold for a total of R6-million by the City Council to recover debts owed by the current owners.
The City would not be able to recover the money - described by Skhumbuso Ndumndum, project manager of Institutional Housing, as "substantial" - without resorting to the sale of the properties.
The buildings, many closed and run-down, would be sold to companies that were prepared to invest in the inner city. "The new companies chosen had good property management records and the financial resources to invest in refurbishing the buildings," Ndumndum said.
"About R6-million would be recovered from the sale of the properties and R8-million will be reinvested in the inner city through the upgrading of the buildings."
Once the buildings had been refurbished this would help in attracting more investment into the inner city, he added.
The once-notorious Mimosa Hotel in Hillbrow, which was locked up by the National Asset Forfeiture Unit last year, is one of the 10 buildings to be sold. The others are: Rondebosch Hotel in Pietersen Street; Lloyd Building in Paul Nel Street; The Waldorf in Esselen Street; Worcester Court in Smith Street; Eastgate Building in Bok Street; Wimbledon Court in Wolmarans Street; San Michelle in Ockerse Street; Jean Law Court in Wolmarans Street; and Lorina Court in Quartz Street.
Several companies had applied to buy the buildings and the council had considered all requests against a set of criteria, before making the awards. "Companies submitted bids, which were then evaluated to determine the suitable owner for a particular building. The company that scored a maximum points secured the building," Ndumndum said.
Four companies - the Johannesburg Housing Company, Ithemba Property Trust, Mageba Investment Properties and Dlamini Properties - have been selected to take over the buildings. The council believed all four companies had the "ability to mobilise resources and the expertise to turn the bad buildings around".
The selling off of neglected buildings in the inner city, according to Ndumndum, was in line with the City's Better Buildings Programme, established in 1999.
The Better Building Programme, run by the City's housing department, is aimed at encouraging investment back to the inner city by renovating abandoned and dilapidated buildings. "The programme is also aimed at addressing the issue of unsettled accounts."
