Eveline de Klerk
WALVIS BAY – While local councils with large tracts of unused TransNamib land will have to compete for it on public auction, the struggling state-owned company’s lowest paid employees have an opportunity to buy the houses they have rented for years.
There are approximately 200 properties that have been earmarked for alienation, the majority thereof being vacant land in various towns countrywide.
These properties, of a substantive number, are both commercial and residential. This process will reap many benefits by offering individuals the opportunity to access land/properties while also bringing much-needed relief to TransNamib in the form of liquid reserves.
Local councils and parastatals that have not made use of an offer by TransNamib to acquire land previously have been informed they will get an opportunity to buy this land on auction.
According to TransNamib, such properties will be sold on auction, and such towns will have to buy prime land on public auction from TransNamib if they are still interested.
Towns such as Usakos will not receive preferential treatment or the first option from TransNamib when the national rail carrier sells some of its properties later this year.
Usakos council CEO Ivan Lombard last week said it is rather disappointing that they will not be granted the opportunity to buy such land, despite showing interest for years.
“We even went as far as the line minister to discuss the matter. We could have even gone into partnership and see how we could have developed such land so that TransNamib benefits at the end, “Lombard said.
Usakos say they have been struggling for years to negotiate with TransNamib, who is believed to own about 90% of prime urban land at the town to such an extent that they in 2018 approached their line ministry to intervene in the matter.
However, TransNamib indicated they would not give priority to Usakos or any other town to buy land from TransNamib before they sell it on public auction.
“Should local authorities be interested, they will have an opportunity to acquire such property during the phase of the bidding, which will be open to the public,” said TransNamib spokesperson Abigail Raubenheimer.
In 2018, TransNamib received the green light from Cabinet to alienate some of its non-core properties.
The company’s real estate portfolio, which is of mixed industrial, commercial and residential properties, has been valued at N$2.4 billion.
TransNamib recently secured a N$2.6 billion loan from the Development Bank of Namibia (DBN) and Development Bank of Southern Africa (DBSA). The loan, however, is strictly to be used for rolling stock. The national rail carrier, with a portfolio of properties spread throughout the country, valued at N$2.4 billion, is expected to dispose of some of its properties later this year.
Asked whether local authorities will have the option to buy back such land or properties, Raubenheimer said: “not specifically”.“In line with Cabinet’s approval and directives regarding the alienation project, TransNamib gave preference to fellow state-owned enterprises and key ministries to acquire the properties that have been earmarked for alienation. Only five SOEs responded to TransNamib’s expression of interest, of which four made an offer to purchase successfully. One such SOE is the National Housing Enterprise (NHE),” said Raubenheimer.
The land in question at Usakos has not been developed since TransNamib inherited it from its pre-independence incarnation. Some of their employees who are also leasing property from TransNamib were already informed that the properties they were leasing were earmarked for sale.
There will, however, be two auctions – one for TransNamib workers and another for private individuals. TransNamib last year indicated that a notice of termination of lease would be served to them should the property they are leasing be successfully bought by another bidder than the occupant.
According to Raubenheimer, the core properties are those TransNamib uses for its operational purposes and investments, while non-core properties include those that are used or reserved to be used when necessary – such as railway reserves.
“All TransNamib properties are used in one way or the other; thus, there are no unused properties,” said Raubenheimer.
On their investment properties, she said is about 10% vacancy, for which they are currently sourcing tenants.
TransNamib has also developed a five-year strategic plan to develop its property portfolio to maximise returns to the company.
- edeklerk@nepc.com.na
Caption (TransNamib):
Bid… TransNamib has informed local authorities they will have to buy land in their jurisdiction on auction.
Photo: Emmency Nuukala
