The insurance replacement value for the Bank of Lisbon building that burned down, killing three firefighters in Joburg CBD, is estimated at a mammoth R 28 564 500.
But after the building failed a health and safety inspection, this could possibly have a severe effect on any potential insurance payout after the fire, said Linda Tshabalala, Head of Commercial Property at Lightstone.
Lightstone is a provider of comprehensive data, analytics and systems on property. Their data reveals that Bank of Lisbon was bought in 2005 for almost a tenth of its initial selling price. Tshabalala explains that after municipal valuations by the City of Joburg earlier this year, the value of the building was set at R 13 280 000.
The devastating fire last week validated fears that this incident may repeat itself in other non-compliant buildings in the Joburg city centre.
As early as 2005 talks had started to address urban decay and rejuvenate the CBD, and in 2015, Parks Tau, then Mayor of Johannesburg, allocated a total of R 5 billion to project Kopanang in an effort to redevelop 21 buildings mostly tenanted by government departments.