GARDEN ROUTE NEWS - The Garden Route District Municipality (GRDM) is proceeding with plans to alienate 19 municipal properties across the Garden Route, including 12 properties in the greater George area.
According to Herman Pieters, GRDM’s communications head, the proceeds will be used to strengthen the municipality’s financial position by reducing debt and supporting its operating budget, “thereby contributing to the overall sustainability of its finances”.
The properties have a combined 2019/20 valuation of about R62m. The municipality’s latest report on the matter refers to an expected gain of R25.2m (the value obtained by the sale less the value of the assets in the books at current state).
According the report, tabled at the 28 July council meeting, the GRDM’s property portfolio is valued at more than R350m, but an audit done in the 2024/25 book year found that the full potential income from the properties is not being realised while the municipality “is facing financial stresses that threaten the very survival of the institution”.
Pieters said the Local Government: Municipal Finance Management Act permits a municipality to sell or transfer a property not required for rendering basic municipal services, but only once the Council has resolved that the asset is not needed for basic services in a meeting open to the public.
According to the report, the tender process to appoint a service provider for the valuation, auctioneering and conveyancing of the properties was completed by the end of April, and a public participation notice for comments on the proposed alienation was published in June.
Properties in the George area
The properties identified for alienation in the George area include five portions of Farm 202 in Hansmoeskraal: Portion 1, valued at R1.6m; Portion 2 at R1.05m; Portion 73 at R400 000; Portion 12 at R3m; and Portion 83 at R650 000.
The others on the list are Kraaibosch 195 Portion 102 (valued at R4.2m); Farm Woodville 172 Portion 4 in Hoekwil (R1.5m); Doornberg Outspan 32 (R870 000); Farm Schooneberg 109 Portion 3 (R460 000); Portion 64 of Farm Moerasrivier 233 (R1.45m); Portion 0 of Farm 185, George (R15.9m); and Erf 1297 Kleinkrantz (R30m).
Herman Pieters, GRDM’s head of communications. Photo: Supplied
Negotiations are under way for transferring Erf 1297 in Kleinkrantz, a 38.54-hectare coastal property, to SANParks.
Sustained community objections over several years based on the conservation importance of the land had led to a proposed housing and resort development by Waterleaf Properties on this erf not obtaining environmental approval, and the cancellation of the GRDM’s 99-year lease with the company.
SANParks has expressed interest in the property and has offered R5m. Negotiations over a possible transfer are ongoing after the GRDM obtained its own valuation.
Dzivhuluwani Mashila, GRDM’s manager of projects, properties, facilities and resort management, told George Herald that the valuation amount cannot be disclosed at this stage. “Management resolved to obtain two more comparative valuation reports before concluding negotiations with SANParks.”
Dzivhuluwani Mashila, GRDM’s manager of projects, properties, facilities and resort management. Photo: Supplied
The report states that Waterleaf Properties was interested in buying the disturbed piece on Erf 1297 where previous resort development had taken place many years ago, but Mashila said this piece also forms part of the negotiations with SANParks.
“However, should the Council decide to transfer the property to SANParks, it’ll determine at that time whether the property will be wholly transferred or whether the disturbed portion will remain under the GRDM’s ownership.”
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