City opens leasing opportunities
The eThekwini Municipality has opened approximately 34 leasing opportunities for redevelopment and development of its properties that are not required to provide a basic municipal service.
This includes three properties on the beachfront where Mini Town, The Joint, and California Dreaming once stood.
Thapelo Mmusinyane, Head of Real Estate, said this is part of the municipality’s proactive land release strategy.
“In doing so they are avoiding a scenario where municipal land, which is not required for municipal purposes, is occupied illegally and development opportunities are lost,” he said.
“This assists the municipality to achieve its developmental objectives and stimulate economic activity through the use of its surplus properties and also enables its residents to gain equitable access to land as prescribed by section 25(5) of the Constitution.”
Mr Mmusinyane said there are eight properties with either leases that expired or are about to expire and 26 new properties altogether.
The lease opportunities on offer include the three properties on the beachfront which need to be redeveloped or refurbished. There are vacant land portions across the city with development potential for residential, commercial, industrial, base telecommunications stations (cellular masts), and mixed-use developments.
He added that this release opens business opportunities for both established developers and emerging first-time developers.
Mr Mmusinyane said the total extent covered by properties which have been issued for leasing opportunities amounts to 123 284 m².
These leasing opportunities allows the municipality to drive the development of priority development corridors, unlocking certain properties in terms of value and economic activity and attracting investment into the municipality. It also opens up the market for new entrants to enable the public to gain access to land on an equitable basis.
“The primary lease term ranges between a period of five to 50 years, depending on the type of development and alignment with the municipality Spatial Development Framework. The minimum/reserve rental amount per month ranges from the lowest of R2 916.67 up to R315 000 being the highest. The RFP (Request for Proposals) documents will be issued on September 13, with submissions closing on December 13,” said Mr Mmusinyane.
There will be two non-compulsory briefing sessions on September 26 and November 14 which will be attended by funding institutions who will clarify their funding requirements and consideration. RFP documents are accessible from the municipal website on https://www.durban.gov.za/pages/business/procurement
