A total of 18 properties are currently being auctioned online by the Gauteng Department of Infrastructure Development in a move to dispose of non-core assets owned by the provincial government.
This was announced by head of department Bethuel Netshiswinzhe on Tuesday at the house in Bryanston‚ Johannesburg‚ that was built as the official residence for the Gauteng premier.
The house is the pick of the auction and with bidding from R9.25-million‚ up from Monday’s price of R9-million. The current open market value of the house is R14.5-million. There is a 5% buyer’s premium to be paid.
Inside the unused Premier’s mansion that’s going under the hammer
Netshiswinzhe told reporters that there were 18 properties identified for the first phase of the auction. The other properties were just vacant land and the premier’s residence is the only house among the assets. The online auction‚ being conducted by Tirhani Auctioneers‚ will run until 2pm on December 12.
If the best bid for the property is less than the market value‚ the Gauteng Department of Infrastructure Development will have to apply to National Treasury in order to take the offer. Already the department has identified a list of 413 properties which have to be auctioned as the assets are not creating value for the department.
However‚ other assets which are residential properties had people living in them. This means that those living in these places have to be given a chance to buy them. In the case of other properties‚ Netshiswinzhe added‚ there were issues of getting rental. He could not immediately say how many people pay rent but admitted this was one of the major problems facing the department.
“Collecting rent is an area that is a challenge to us‚” he said.
He added that it was not the core competence of the department to collect rent from people and the properties were assets in the department’s register but did not create value for the provincial government.
People living in these properties were government employees and members of the general public.
18 Gauteng government properties now up for auction
A total of 18 properties are currently being auctioned online by the Gauteng Department of Infrastructure Development in a move to dispose of non-core assets owned by the provincial government.
This was announced by head of department Bethuel Netshiswinzhe on Tuesday at the house in Bryanston‚ Johannesburg‚ that was built as the official residence for the Gauteng premier.
The house is the pick of the auction and with bidding from R9.25-million‚ up from Monday’s price of R9-million. The current open market value of the house is R14.5-million. There is a 5% buyer’s premium to be paid.
Netshiswinzhe told reporters that there were 18 properties identified for the first phase of the auction. The other properties were just vacant land and the premier’s residence is the only house among the assets. The online auction‚ being conducted by Tirhani Auctioneers‚ will run until 2pm on December 12.
If the best bid for the property is less than the market value‚ the Gauteng Department of Infrastructure Development will have to apply to National Treasury in order to take the offer. Already the department has identified a list of 413 properties which have to be auctioned as the assets are not creating value for the department.
However‚ other assets which are residential properties had people living in them. This means that those living in these places have to be given a chance to buy them. In the case of other properties‚ Netshiswinzhe added‚ there were issues of getting rental. He could not immediately say how many people pay rent but admitted this was one of the major problems facing the department.
“Collecting rent is an area that is a challenge to us‚” he said.
He added that it was not the core competence of the department to collect rent from people and the properties were assets in the department’s register but did not create value for the provincial government.
People living in these properties were government employees and members of the general public.
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