Home South Africa News SABC will auction off properties to raise money

SABC will auction off properties to raise money

SABC

The SABC said on Friday that it will issue notices of termination of lease agreements for its non-core properties and will sell these at an upcoming public auction.

The assets to be auctioned off include residential properties which are being leased to both SABC employees and non-employees. Termination notices will be issued effective 1 December.

Because the properties will be sold through a public auction, the public broadcaster said it will not be able to offer right of first refusal to current tenants.

SABC

“This decision is part of the recommendations of the process undertaken in line with the Public Finance Management Act,” it said.

“In an effort to accommodate the tenants, given that the festive season is upon us, the corporation also deemed it appropriate to extend the termination notice period beyond that of the lease agreements. Tenants will further be given all the relevant support during this time,” the SABC said in a statement.

The disposal of non-core assets is part of the organisation’s turnaround strategy and target operating model to ensure that the business invests in relevant assets, which are in line with and focused on the core business of the public broadcaster,” said chief financial officer Yolande van Biljon.

“The selling of non-core assets will also assist in the much-needed cash injection, required for the SABC to become and remain financially sustainable”.

The broadcaster did not say how many properties will be sold or how much it expects to raise through the process.

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Source: moneyweb