Slowed by paperwork

Posted On Friday, 13 August 2004 02:00 Published by eProp Commercial Property News
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Inner city development slowed by paperwork

 

Property-Housing-ResidentialSlow and complicated legal processes are hampering the progress of the Better Buildings Programme (BBP), an initiative aimed at fast-tracking the sale of dilapidated properties in Johannesburg's inner city. 

The BBP has 155 screened and registered investors clamouring for inner-city buildings for rehabilitation. But project manager Geoff Mendelowitz says there is a dearth of properties. 

"We're getting five or six inquiries a day but I've got bugger-all buildings ready," says Mendelowitz. He says it can take as long as two years to finalise paperwork for a property. 

Fifty-one buildings are being processed by the BBP. Twelve are vacant and 39 are occupied. 

By Mendelowitz's estimate, the 51 properties share arrears of R120m between them. He believes they are collectively worth about R20m, less than R400 000 each. The refurbishment cost should come in at R120m. Mendelowitz says this is a perfect opportunity for government to stimulate investment, its stated aim. 

"If the city writes off R120m of bad debt on these properties, it will get R120m of reinvestment in return," he says. 

Mendelowitz says the BBP is trying to shorten the process to assist genuine buyers. But at the moment it's a time-consuming process.  "Investors are welcome to register with the BBP, but don't wait for us, just go out and start buying," advises Mendelowitz.  



Last modified on Saturday, 17 May 2014 14:17

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