Airports Company South Africa (Acsa) was unlikely to accept a reported R1.5 billion offer from Transnet for a portion of the old Durban International Airport site.
“The media-reported figure of R1.5bn that Transnet has supposedly set aside is not in line with the independent valuations we have received,” Acsa spokesman Solomon Makgale said on Wednesday.
Makgale said negotiations with the transport and logistics parastatal were continuing and had not reached a stage where a financial offer was being discussed. Makgale said the negotiated price must reflect a fair value for a large tract of land in Durban’s South Basin, which he said was a rare commodity.
This week, Brian Molefe, the group chief executive at Transnet, told Parliament that R1.5bn had been set aside to buy land that would be used to build a new port.
Makgale said any price would be subject to negotiation. He would not disclose the valuation for the land.
Sources familiar with the issue have previously said that Transnet had been prepared to offer just R1bn before raising its offer to R1.5bn. Business Report has learnt that Acsa would like R3bn for the land but is prepared to accept R2bn.
“Any price for the land will be subject to negotiation and agreement between Acsa and a potential purchaser on the fair market value. In the property business, the outcome of negotiations of such a sensitive and strategic nature may only be made public once a deal has been struck,” Makgale said.
Transnet spokesman Mboniso Sigonyela said the company was in talks to purchase 638ha of the old airport site.
Asked what Transnet would do if Acsa refused to settle for R1.5bn, he said: “It would be inappropriate to speculate on the possible outcome including the final agreement on price.”
Sigonyela said Transnet had undertaken prefeasibility work on the site for the development of 16 container berths in five phases, five automotive berths and four liquid bulk berths.
The first phase, which Transnet plans to complete in 2019, is projected to cost R50bn. The rest of the project will be complete by 2037.
Makgale said there was demand for the property and Acsa had started discussions with various interested parties.
“The intention has always been to sell the greater portion to satisfy Transnet’s requirements, leaving the lesser part or remainder to be developed as part of Acsa’s property portfolio,” Makgale said. - Business Report