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The Eastern Cape Development Corporation (ECDC) says it is looking to raise R900 million in private investment and a further R468 million in public funding, by the end of the 2027/28 financial year to modernise its property portfolio, which has an asset value of R1.2 billion.
The corporation is engaging the private sector to invest in its strategic property assets, in return for long-term leases of up to 60 years.
ECDC is also actively engaging the private sector through tenders and targeted meetings, while soliciting expressions of interest or realistic proposals which are mutually beneficial and financially sound.
The ECDC is one of the largest property owners in the public sector, with 1 771 rental units across a portfolio spanning vacant land, residential, commercial and industrial properties.
The properties are concentrated in Mthatha (industrial, commercial and residential), Butterworth (industrial, commercial and residential), Buffalo City (industrial and commercial) and Komani – formerly Queenstown, (commercial and residential).
“Interested investors are invited to present proposals to the ECDC which are financially sound and beneficial to both parties. However, we are already doing our part, and have initiated a R468 million property refurbishment programme on our existing properties, which is being implemented and earmarked for completion by the end of 2026.
“The R468 million is comprised of a R184 million grant from the provincial government, R262 million will be raised through the ECDC’s property disposal programme of non-core assets, and about R24 million is being raised through current private investment,” says the ECDC’s executive for properties and infrastructure management services, Craig Thompson.
ECDC’s core properties are described as commercial and industrial properties, as well as large tracts of vacant land.
“For example, there is an opportunity to invest in the corporation’s Wild Coast hotels such as Oceanview Hotel in Coffee Bay, Mazeppa Bay, Kob-Inn Hotel and Wavecrest Hotel. Wavecrest already has an investor operating the hotel on a long-term lease. Other hotels also have operators in place, however, these are still open for private investors to come in and improve the hotels.
“There are further opportunities to invest in commercial properties in Mthatha, and in open vacant land in Mthatha, Butterworth and Mdantsane to develop the large tracts of land,” added Thompson.
Thompson said the ECDC was on track to complete its property disposal programme of non-core properties by the end of March 2026.
The programme aims at raising R262 million, with the proceeds of the disposals being ploughed back into the refurbishment programme. By the end of September 2023, the programme had already raised R63.57 million from the disposal of 139 non-core properties at public auctions.
