Maria Ramos reveals to Realestateweb the plans for Carlton Centre, Culemborg and other prime properties.
There is bad news for developers who are chomping at the bit to get their hands on prime Transnet land in Cape Town - the parastatal is set to hold on to what is probably the most sought-after property.
Transnet group CEO Maria Ramos told Moneyweb's new property news site Realestateweb on Wednesday that the organisation is set to keep land at Culemborg because it is considered a core asset.
The Carlton Centre in Johannesburg, on the other hand, is set for disposal soon.
Ramos said she "drives an incredibly hard bargain", so investors on the look out for cheap property need not bother putting in a bid on the Johannesburg landmark.
Ramos said the centre is in a "vibey" part of the city and has good long-term tenants, like the South African Revenue Service and Pick ‘n Pay.
Many unsolicited bids have been received for the Carlton Centre, however the property will be offloaded in a "transparent and public process", said Transnet CFO Chris Wells.
Transnet receives at least one bid or an expression of interest for the Culemborg land every week, he said.
That parcel of land is on the edge of Cape Town's city centre, near the regenerated foreshore area in high demand for commercial and residential development.
But Transnet is keeping it as it is "adjacent to our port operations" and "deemed to be core for the future expansion of the facilities", said Wells of why developers may as well give up hope in accessing Culemborg in the foreseeable future.
Wells said properties that Transnet considers non-core will be sold off "in a structured and orderly way over years".
"We have properties in most of the major urban areas," he said. The commercial appeal varies, and some would be of little interest to big developers.
In Durban, the most sought-after land is also close to water. Unfortunately for property investors looking for new opportunities, Transnet considers its key properties around Durban port as "core", he said.
Investors needn't expect more high profile properties like the V&A Waterfront to be sold any time soon. Transnet recently sold its 26% stake in that development to the London & Regional Consortium, netting it R1,8bn.
There is not much in this vein set to be sold by Transnet on the horizon.
As Ramos highlighted on Wednesday, Transnet has now "dealt with" non-core assets and cleaning up the business operations in general and is moving into an era where capital investment will gather momentum.
Transnet is to spend about R78bn on various businesses, according to a five-year business plan, with ports in Durban, Richards Bay, Cape Town, Saldanha and Ngqura (Eastern Cape) among the operations set to receive sizeable cash injections.
East London is set to be the neglected child, as Transnet studies have suggested there isn't sufficient demand to build capacity beyond what is already there.
A priority, said Transnet, is to generate a commercial return.
Many billions are to be pumped into modernising national rail operations and enhancing their efficiency.
Other non-core assets that are being sold now include the Blue Train, Autopax (bus company) and Shosholoza Meyl.
This is because Transnet sees itself as a "freight" company, and as a result is disposing of passenger-focused operations.
Meanwhile, after being asked in a media presentation for her economic views, Ramos said she is watching the global economy carefully to see what the impact on South Africa and Transnet operations may be.
Currently, however, she believes that the underlying global economy remains "pretty buoyant", with strong growth in Asia and the US.
There isn't any major turmoil in real GDP (gross domestic product) numbers across the world, said Ramos, with Transnet figures suggesting the domestic economy is in good shape.
