Eskom raises R76m from sale of non-core properties

Eskom has sold two buildings to the Department of Human Settlements, Water and Sanitation in an effort to raise funds.

The department has been given the first right of refusal on all properties with a residential potential, in line with government policy.

“The sale of these two high rise office buildings in Kimberley and Johannesburg has raised R76.1 million for Eskom, part of Eskom’s 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,” the utility said on Tuesday.

The sold properties were previously used as regional offices and staff have been moved to other locations as part of Eskom’s drive to optimise space.

ALSO READ: Eskom’s De Ruyter must be replaced, creditors need a ‘haircut’, says Saftu

According to the power utility, the department will convert the Kimberley Trust Centre and the 26-storey regional office in Johannesburg into residential housing units.

“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,” it said.

Eskom further expects to finalise the sale of the Die Wilge flats outside the Kusile power station in eMalahleni and the Lephalale Stands near the Medupi power station during the first half of the financial year.

The block of flats were meant to house technicians working at Kusile power station when it was being built. However, the power station was finished before the flats.

Initially, the budget for the flats was R160 million, which later increased to R840 million. The flats have now been abandoned and deemed impaired.

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