SABC to sell its residential properties

After recording a loss of R511m for the year ending March 31 2020, the state broadcaster is looking for ways to cut its costs.
After recording a loss of R511m for the year ending March 31 2020, the state broadcaster is looking for ways to cut its costs.
Image: Tyrone Arthur

Residential properties being leased to employees and other tenants by the cash-strapped SABC will be sold at auction, the state broadcaster said on Friday.

“The South African Broadcasting Corporation (SABC) will be issuing notices of termination of lease agreements for its non-core properties, following an extensive process ... for the disposal of non-core assets,” it said in a statement. The notices will be effective from December 1.

“In an effort to accommodate the tenants, given that the festive season is upon us, the corporation also deemed it appropriate to extend the termination notice period beyond that of the lease agreements. Tenants will be given all the relevant support during this time.”

The properties will be sold at public auction.

As a result, the broadcaster said, it would not be able to offer right of first refusal to current tenants. This decision is part of the recommendations of the process undertaken in line with the Public Finance Management Act, it said.

Yolande van Biljon, the SABC’s CFO, said the sale was part of the organisation’s turnaround strategy.

“The selling of non-core assets will also assist in the much-needed cash injection required for the SABC to become and remain financially sustainable,” she said.

The date of the auction is yet to be announced.

TimesLIVE


Would you like to comment on this article or view other readers' comments? Register (it’s quick and free) or sign in now.

Speech Bubbles

Please read our Comment Policy before commenting.