KZN Immovable Assets Disposal Strategy & its role in transformation.

1. KZN PUBLIC WORKS KZN Immovable Assets Disposal Strategy & its role in transformation. Towards Transformation of the Property Sector

2. Outline • Background • Objectives of the KwaZulu-Natal Immovable Assets Disposal Strategy • Disposal Strategy & its role in transformation • Methods used for the disposal of properties

3. Background • 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.

4. Objectives of the KwaZulu-Natal Immovable Asset Disposal Strategy • 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.

5. Disposal Strategy & its role in transformation • 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.

6. Disposal Strategy & its role in transformation (cont…) • 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.

7. Methods used for the disposal of properties • 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.

8. Methods used for the disposal of properties (cont…) • 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 socio-economic 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.

9. Methods used for the disposal of properties (cont…) • 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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