South Africa’s state-owned logistics company Transnet has taken the first step towards disposing of 15 commercial properties that it considers non-core to its rail, ports and pipeline operations.
The portfolio includes some of the country’s most recognisable properties, notably Johannesburg’s iconic Carlton Centre, as well as shopping centres, golf courses, office sites and large parcels of land spread across several provinces.
The move forms part of Transnet’s broader strategy to unlock value from assets that are not central to its operations while reducing the costs associated with maintaining surplus properties. Transnet has previously indicated that disposing of non-core properties can generate cash and reduce property-related holding costs.
Carlton Centre back on the market
The Carlton Centre is the most high-profile property in the portfolio.
The 50-storey Johannesburg landmark covers approximately 28,291 square metres and has been associated with Transnet since the company acquired it from Anglo American in 1999 for R33 million.
Transnet previously attempted to sell the building, including a reported R900 million asking price in 2023, but that process ultimately failed after prospective bidders could not demonstrate sufficient funding.
The latest disposal process does not specify an asking price for the Carlton Centre in the government notice.
A diverse property portfolio
The 15 properties include:
- Carlton Centre, Johannesburg
- Durban Station Precinct No. 1
- Umlazi Mall Megacity
- Mount Frere Shopping Centre
- Arcadia Park
- Avion Park Golf Course
- Bloemfontein Golf Course and Club House
- Oribi Plaza in Port Shepstone
- Messina Superspar in Musina
- Bellville Marshalling Yard
- Kenridge/Willow Bridge
- Cape Town Foreshore property
- Cape Town Site 9
- Humewood properties
- Other commercial and development land
The portfolio includes sizeable properties, with the Bloemfontein Golf Course and Club House covering more than 857,000 square metres and the Oribi Plaza property in Port Shepstone spanning more than 405,000 square metres.
Government gets first opportunity
The properties will not immediately be placed on the open market.
Under the disposal process, national and provincial government departments, municipalities, state-owned companies and other public entities have a first right to express interest in acquiring or leasing the properties.
The public-sector window will run for 30 days following publication of the notice. If there is no qualifying government interest, Transnet can then proceed with a public Request for Proposals for private-sector buyers.
Part of a wider restructuring
The disposal is significant because Transnet has been under pressure to improve its financial position and concentrate capital on its core logistics infrastructure.
The company's wider property strategy extends well beyond the 15 properties announced this week. Transnet has identified thousands of non-core properties for potential disposal as it seeks to reduce maintenance, rates, utilities and other holding costs while generating funds for its core business.
Transnet's own strategic documents have also identified the disposal of non-core and underperforming properties as a way of generating revenue and reducing holding costs.
For investors and property developers, the latest move could therefore create opportunities to acquire large strategic sites across South Africa, while potentially giving long-neglected assets such as the Carlton Centre another chance at redevelopment.
The properties have not yet been sold. The current announcement marks the beginning of the disposal process, with the public sector receiving the first opportunity to express interest.
