More city land auctioned
Seven more land parcels were sold on auction last week to raise money to provide housing and services for the poor.
More than R60 million was raised when seven prime land parcels came under the hammer last week in the second Tshwane land release auction – the majority of properties situated in the industrial area of Waltloo in the east of the city.
A 14,7 hectare parcel of undeveloped industrial land in Petroleum Street, Waltloo reached R13 million at the auction, held on behalf of the Tshwane metro by the High Street Auction Co.
On Thursday, the second of three auctions was held in which the metro sold land on auction to raise money which would essentially address two tactical elements. The first being that of capital costs, especially for non-revenue generating infrastructure.
Secondly, the money would be used for the funding of infrastructure, as the proceeds of the auctions will fund principally the metro’s flagship revolutionary housing programme – Re aga Tshwane.
“Through this programme, we will issue title deeds and provide a basket of essential services, including prepaid electricity, water, onsite sanitation, refuse removal and road infrastructure,” mayoral spokesperson Blessing Manale said.
The metro had seven lots on auction last week. This brings the sum total of lots that had been on auction up to now, more than 20.
Tshwane had received bids of more than R250 million during both auctions, the first held in March this year.
Other properties sold on Thursday included a 21-hectare stand in Soshanguve for R21 million and a 3,1-hectare parcel in Sinoville for just over R7 million.
“The land parcels that were auctioned and those planned for future auctioning constitute less than 0,05% of Tshwane’s total land mass, less than 2% of the total asset base of the City and less than 7% of total land assets.”
Manale said upon full development of all parcels released, Tshwane’s most conservative estimation suggested it would generate R16,2 billion worth of economic activity, create over 25 000 jobs and generate over R224 million in rates income for the city, anually, into perpetuity.
“Through the first phase of the release of these land parcels, the City has raised approximately R190 million, which is dedicated towards funding infrastructure. Our expectations of the revenue
generated have been surpassed in every respect,” Tshwane mayor Kgosientso Ramokgopa said during the 2015 State of the Capital Address.
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