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Western Cape provincial government aims to sell or rent out underused property in its portfolio

Posted On Tuesday, 25 August 2015 09:36 Published by
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THE Western Cape provincial government’s property portfolio is worth R80.1bn, about R2bn more than the largest locally based listed property fund, Growthpoint.


But too many Western Cape government buildings were underused and needed to be sold or rented out, said Gavin Kode, an adviser to the provincial public works department.

He was reacting to the Western Cape’s third property efficiency report, which found that the province’s property portfolio performs better than the private sector’s on cost but cannot match it on the use of space.

While the total property cost per square metre was 21.4% lower than average, the space used per person was 36.9% greater.

Mr Kode said a modernisation programme begun in June 2009 had substantially improved energy efficiency in provincial government buildings. He said the programme sought to address physical resource management, including the management of immovable property assets.

“There is scope for rationalising and reducing the size of the portfolio. Underoperating buildings could be vacated and the remainder sweated more effectively. We need to use spaces more efficiently, especially public spaces such as parks. Better use of space would deliver meaningful savings,” said Mr Kode.

In terms of energy use per square metre, Western Cape government offices were 21% more efficient than the private sector.

The province’s modernisation programme has an initial budget of R600m. “The programme intends to enable the release of surplus leased office space. During the 2015-16 financial year we have approximately 20 projects planned costing R226m,” said Mr Kode. “We then have R129.4m for the 2016-17 year and R14.75m for the 2017-18 year. The annual space saving will be in the region of 30%, equating to a yearly saving of R58m.”

source Business Day

Last modified on Wednesday, 26 August 2015 11:04
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