The North West Housing Corporation (NWHC); a schedule 3(c) Public Entity in terms of the Public Finance Management Act (“PFMA”) No.1 of 1999 and it was established in terms of the North West Housing Corporation Act 24 of 1982 as amended, has decided to dispose its portfolio of non-core and non-strategic immovable properties to lower its operating costs and raise capital to fund essential service delivery initiatives in line with its mandate to provide for the shelter, accommodation, and housing needs of the North West Province. The portfolio of the non-core and non-strategic immovable properties earmarked for disposal includes more than 1800 vacant land, stands, farms, and business properties mostly situated outside the jurisdiction of the North West Province across the provinces of Gauteng, Northern Cape, and Free State.
Although the NWHC is the rightful owner of all the properties earmarked for disposal, some of the properties are registered in the names of the municipalities where they are located. The NWHC has appointed Tirhani Auctioneers to manage the entire disposal process, including communication, in-loco inspections, marketing, and ultimate disposal using online auction methods. Dr Tirhani Mabunda, Director of Tirhani Auctioneers commented as follows regarding the online auctions: “Online auctions provide for a transparent, auditable, convenient, and competitive asset disposal process conducted on an internet-based platform. The online auction platform enables prospective buyers to bid online against each other from the comfort of their offices or homes, with the system acting as an invisible auctioneer and regulating bid increments and the entire bidding process with each lot sequentially closing at a given time. Bid prices are updated in real time as bidding progresses and the highest bidder wins at the close of the bidding process subject to pre-determined reserve prices. Assistance will be provided to first time online auction users through information booths, workshops, and selected Estate Agents who will educate buyers on ‘HOW TO REGISTER FOR ONLINE AUCTIONS’ and ‘HOW TO BID’. Bidding centres and other outreach programs will also be established in the vicinity of the areas where properties earmarked for disposal are located to assist members of the public wishing to participate in the online auctions, including those that are computer illiterate”.
Mr Sello Mogodiri, CEO of the NWHC commented as follows regarding the disposal project: “The disposal of the immovable properties will be based on competitive market values in accordance with the provisions of Section 16 (A) 7.3 of the Public Finance Management Act (PFMA) No. 1 of 1999”. Mr Mogodiri added that: “We are convinced that the decision to dispose of the non-core and non-strategic immovable properties will not only save NWHC upkeep costs such as rates and taxes, maintenance, security, devaluation through wear and tear as well as acts of vandalism, but will also raise much needed money to fund essential service delivery projects in line with the corporation’s mandate to provide for the shelter, accommodation, and housing needs of the North West Province”.
The NWHC’s property disposal project will create opportunities for people in and around the North West Province to buy and own the properties. To this end, the NWHC acknowledges that some of the properties earmarked for disposal have been invaded. People who have been occupying some of the vacant land and stands belonging to the NWHC and earmarked for disposal will be offered the ‘RIGHT OF FIRST OFFER OR NEGOTIATION (ROFO)’ option to buy such properties outright at determined open market values subject to the terms and conditions of the disposal process. Tirhani Auctioneers will remove properties which are bought using the ROFO option from the disposal list. Properties not sold through the ROFO option will be auctioned. The ROFO option contemplated by NWHC is neither a recognition of tenancy nor regularization of leasehold, it being specifically recorded that the NWHC reserves its rights.
The first batch of 497 of properties approved for disposal mainly consist of vacant land, stands and business properties located in Tshwane, Gauteng. The first online auction is expected to take place by the end of June 2021.
Visit www.tirhani.co.za or phone 0861TIRHANI/847426 or email info@tirhani.co.za for more details about the disposal process and upcoming auctions. Follow Tirhani Auctioneers on Twitter: @tirhaniauctions and Like Tirhani Auctioneers on Facebook: tirhaniauctioneers. Also visit the NWHC’s website on www.nwhc.co.za. Follow the NWHC on Twitter: @legaelabatho and Like the NWHC on Facebook: North West Housing Corporation and subscribe on You Tube: North West Housing Corporation
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