KZN PUBLIC WORKS
KZN Immovable Assets Disposal Strategy &
its role in transformation.
Towards Transformation of the Property Sector
Outline
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Background
Objectives of the KwaZulu-Natal Immovable Assets
Disposal Strategy
Disposal Strategy & its role in transformation
Methods used for the disposal of properties
Background
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Development of a Disposal Strategy arose from a
need to contribution to transformation of the
industry.
For the disposal of redundant properties & not
economically viable to be retained for government
purposes.
Properties are disposed of to assist with
developmental programme e.g.to Municipalities for
low cost housing and housing developments.
Objectives of the KwaZulu-Natal
Immovable Asset Disposal Strategy
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Disposal process implemented in the context that
promotes development small enterprises.
Provides a strategic and productive vehicle for
economic development, service delivery and
transformation.
It includes deliberate measures to increase Black
participation in, and benefit from, property disposals.
Provides for asset disposal in respect of Housing,
Land Reform, Local Economic Development and other
socio- economic imperatives.
Disposal Strategy & its role in
transformation
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The strategy seeks to increase participation of
targeted groups (women, youth & the disabled) that
benefit from disposals thus encouraging land
ownership.
The implementation of a Strategy will ensure that
training is given to new entrants by the previously
advantaged & other previously disadvantaged
property owners who have succeeded teaching them
how best to use the property stock to their
advantage and to ensure sustainability.
Disposal Strategy & its role in
transformation (cont…)
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Properties disposed to the targeted groups will have
a restriction clause on the sale agreement for
endorsement of the title deed stipulating that the
land cannot be resold to anyone other than the
target group.
Methods used for the disposal of
properties
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Disposal of properties is by public bid & using
preference points guided by the Preferential
Procurement Policy Framework Act, making provision
for the disposal of land to historically disadvantaged
groups as well as youth and women.
The sale of properties is at current market value,
unless approval of the relevant Treasury if there were
to be any deviation.
Methods used for the disposal of
properties (cont…)
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The donation of properties to other organs of the
state or Non Governmental Organization's (NGO’s and
civil society organizations in order to promote socioeconomic objectives may be considered, subject to
approval of the Provincial Treasury.
Properties can be exchanged where instead of a
purchase price being agreed, exchange of ownership
of the respective properties with the Provincial
government takes place.
Methods used for the disposal of
properties (cont…)
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Public Private Partnership (PPP) – a private party
may acquire the use of a State-owned property for a
private party’s commercial use and simultaneously
assumes financial, technical and operational risk in
connection with the use of the asset. The ownership,
of the property remains with the Provincial
Government. This agreement may be entered into
subject to Treasury approval in line with the policy
guidelines and procedures governing PPP
agreements.
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