Eskom selling undeveloped Sandton site

Posted On Monday, 20 September 2004 02:00 Published by eProp Commercial Propety News
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Johannesburg - Eskom, the power utility, is selling land in Lonehill, Sandton, estimated to be worth R24 million.

Johannesburg - Eskom, the power utility, is selling land in Lonehill, Sandton, estimated to be worth R24 million.

The company advertised in a weekend newspaper that it was selling a 9.6263ha portion of the farm Lone Hill number one in Capricorn Drive. A property developer said an undeveloped site like this would be worth about R250 a square metre.

Eskom spokesperson Fani Zulu said the power utility was selling the property because it was costing more than R50 000 a year to maintain.

"It makes good business sense to sell the land. It was bought in the 1960s to build the Paulshof substation. We bought the whole area because the owner would not sell us only the piece we needed."

Eskom did not have much unused land to sell and so had not designed a programme to get rid of its excess land.

"We buy property only for specific reasons and we don't have more than three items in our land assets register to warrant a full programme."

Zulu would not say what Eskom expected from the sale. "If I tell the amount, people would take it as the value and would not want to pay more," he said.

He would not say how much the remaining unused land cost Eskom to maintain and how much it was worth. He also did not say when Eskom intended to get rid of all its unused land.

Gaynor Kast, the spokesperson for the department of public enterprises, confirmed that it had a strategy to turn around state assets by disposing of non-core business in all public enterprises.

Last modified on Thursday, 15 May 2014 13:50

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