Why Telkom is selling 34 properties in a big auction

Telkom recently announced through auction partner GoIndustry that it would hold an auction for 34 properties.

GoIndustry said the 34 lots include commercial and industrial buildings across the country, and the auction will be held online.

“For this particular sale, the properties are being sold via our specialised online auction platform, which is… suited to accommodate bidders located across the country,” said GoIndustry.

“This is an extensive portfolio, including single-storey buildings used for telecommunications in the past, as well as vacant land with development potential.”

The properties mostly feature industrial single-storey buildings, with a wide variety of zoning classifications, added the company.

Bidding for the lots will close on 26 November 2019 at 14:00, with viewing by appointment only.

Telkom property plans

We asked Telkom why its subsidiary, Gyro, had opted to auction off these properties.

“Part of Gyro Group’s strategic mandate is to unlock value and minimise property operating costs in the Telkom Group property portfolio,” Telkom said.

“Non-core Telkom owned properties and properties that cannot be repurposed for the business or has no property development potential will be disposed.”

When asked whether Telkom would sell more buildings going forward, the company said it would dispose of more properties if necessary.

“The property portfolio will be continuously evaluated and if future properties don’t meet the criteria, similar disposal processes will be followed,” the company said.

In its interim results for the six months ended 30 September 2019, Telkom said it was evaluating the feasibility of 156 properties.

“Non-core properties not suitable for operational use or development and redevelopment are in the process of disposal or repurposing,” Telkom said.

“Approximately 156 properties are being evaluated, of which 34 have been identified as ‘properties held for sale’. Some of the properties will be up for sale during the financial year.”

The company said that to reduce property occupancy expenditure for Telkom and its subsidiaries, it is consolidating office and warehouse space in major cities.

Photos of the properties listed for sale are posted below.

Properties for sale

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Why Telkom is selling 34 properties in a big auction