Macpherson says new property company will generate revenue for state

Public Works Minister Dean Macpherson says a new state property company announced by President Cyril Ramaphosa last week will result in the most significant reform in the management of state assets since 1994.

He said the platform will allow for more income to be generated for the state through its R155-billion property portfolio, while also cutting down on the billions spent on leasing private property.

Macpherson has shed more light on how the company will operate during debate on the State of the Nation Address in parliament on Wednesday.

The state spends R6 billion every year leasing property, while prime property stands vacant or has been hijacked.

Macpherson said while the state sits on a massive asset base, it does nothing to generate income to maintain it.

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A year in the making, Macpherson said the new property vehicle will allow for better asset management and property development, with its main mandate to unlock value for reinvestment.

"It introduces the best in asset management, development finance and property development. It establishes a verified, digital asset register."

He said the second phase of the project, which will focus on refurbishing under-utilised public buildings, will also create jobs.

"Nearly 100,000 direct construction and indirect jobs are projected, with up to R60 billion in broader urban economic activity catalysed in the programme."

Macpherson said the vehicle will also include a dedicated capability to prepare underutilised land to become bankable projects for development, including housing.