The South African Broadcasting Corporation (SABC) will auction three prime land parcels in Durban Central to raise funds.
The properties, strategically located near Kingsmead Cricket Stadium, will be auctioned by Broll Auctions and Sales on October 16, 2024.
These vacant plots, totalling 8,944 sqm, offer significant development potential. Major landmarks surround the land, including hospitals, retail outlets, hotels, and prominent institutions like the SABC, UNISA, and the Durban ICC. Residential properties also dot the area, making it ideal for various development projects.
Prime Development Opportunities
The General Business 3 zoning provides a versatile platform for developers to create projects from scratch. According to Jaclyn Nair, a Broll Auctions and Sales broker, the zoning allows for a maximum height of seven storeys with 80% coverage, making it suitable for mixed-use developments. Suggested uses include sports facilities, residential complexes, or commercial spaces catering to the growing “live-work-play” demand.
Several developers have shown interest in the properties due to their proximity to key amenities like Kingsmead Cricket Stadium. This auction is part of a larger multi-property event at Wanderers Club, Johannesburg, expected to attract significant attention from investors.
SABC’s Financial Woes
The land auction is part of the SABC’s broader efforts to address its financial challenges. Despite receiving its first unqualified audit in 14 years, the state broadcaster still needs to improve its financial position. Its 2023/24 annual report highlighted a loss of R192 million before interest and tax, alongside negative equity on its balance sheet as of March 31, 2024. This loss puts the SABC in technical insolvency, as its liabilities exceed its assets.
Changes to TV Licence Fees
In addition to property sales, the SABC is seeking alternative funding solutions. One major move involves the proposed abolition of traditional TV licences. New legislation, introduced in October 2023 and revived in July 2024, aims to replace the outdated licence system with modern levies.
