Telkom has raised R617 million from auctioning its properties dotted across the country. This was revealed by property marketing and auction company In2assets.
“The highly-anticipated National Telkom Property Disposal Auction has concluded with resounding success, marking a milestone in South Africa’s property market,” says In2assets.
The livestreamed auction attracted 127 registered bidders from local, national and international locations, resulting in a turnover of R617 million – exceeding expectations, it notes.
In its quarterly financial results for the three months ended 30 June, Telkom revealed it raised R161 million in the first quarter of 2024 through the sale of non-core property assets.
It said business unit Gyro continued to rationalise the property portfolio through accelerated disposal and transfer of properties that are no longer core to the group’s operational requirements.
Gyro is a standalone subsidiary of Telkom, which owns and manages a diverse portfolio of masts and towers, as well as real estate.
In2assets adds that in what is being hailed as the largest property auction by turnover in South Africa to date, all 17 properties on offer were sold and confirmed at the fall of the hammer.
It says the diverse portfolio, spanning prime locations across Cape Town’s CBD, Johannesburg, Pretoria, Durban, Port Elizabeth and Welkom, generated intense interest from investors, underlining the potential and value of these assets.
According to the firm, the auction represents a strategic move for parastatal institutions like Telkom to turn non-core buildings and land into vital cash injections.
Such initiatives provide a significant boost to the financial health of these institutions, allowing them to reallocate resources and invest in their core operations, it says.
Hein Hattingh, MD of In2assets, comments: “The exceptional turnout and the record-breaking results underscore the confidence investors have in the South African property market. We are proud to have facilitated this landmark event, which also plays a crucial role in providing financial support to parastatal organisations.”
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