Vacant distribution centre awaits new tenant
The building was completed in 2022, and has been lying dormant since.
Since its completion, the R69m distribution centre located at the Ekurhuleni Fresh Produce Market in Springs lies dormant.
DA Ekurhuleni caucus leader Brandon Pretorius and DA Ekurhuleni deputy spokesperson for economic development Wollaston Labuschagne recently conducted an oversight visit to the facility.
“Not only is this 5 000m² facility vacant, but a lack of use and maintenance is starting to become visible,” says
Labuschagne.
“The R69m used to construct this facility would have been better served upgrading and carrying out maintenance
on the existing market.”
He adds the concrete roads and parking areas are crumbling.
Labuschagne states this is yet another economic white elephant that comes with a heavy price tag.
The DA argues that the building was built seven years ago, a statement the Metro strongly refutes.
“The facility in question is a Distribution Centre that was completed and issued with an occupancy certificate on the 27th of June 2022 and therefore the facility was not dormant for seven years,” says CoE spokesperson Zweli Dlamini.
According to the CoE, the department suffered a huge setback due to economic depression and slow recovery following the Covid-19 pandemic, which was the leading cause of its dormancy.
“It also added to the delays finalising the lease.
“Furthermore, there are several unsolicited expressions of interest to lease the facility and raised concerns around some of the standard conditions of the lease agreement, in particular the duration of the lease.
“Part of this concern is being addressed through a lease agreement policy review parallel to the process of securing a tenant for the centre.”
He adds a report of the lease of the centre has been finalised and with all processes completed, will allow the city to advertise it to secure a tenant.
“There are active plans and processes to finalise the long-term leasing of the distribution centre in line with all
applicable council ordinances.
“Property evaluation is in progress to determine the market-related rental value with a lead time of February 28.
“The call for interested parties to express their interest and the evaluation thereof with final awarded targeting
April/May 2025.”
