The property industry expressed disappointment in several aspects of the process, including time allocated for preliminary submissions and the requirement of a R50000 nonrefundable deposit in exchange for details of what was for sale and the criteria for acquisition.

Telkom procurement services executive Phil Redhead announced on Friday last week the day submissions were due that the group had decided to move the due date to November 1. Several interested parties felt they needed more time to finalise their submissions, given the nature and size of the proposed transaction, he said.

Industry lobby groups, including the Property Council of SA and commercial property association Sapoa, had raised concern about the process with Telkom.

It was felt that the process might favour large, established commercial property players at the expense of emerging and black empowerment firms. Telkom had indicated that it was looking for one large investor or a consortium to take the whole portfolio.

Telkom said its preference for one large entity would not exclude black empowerment players because its stringent prequalification criteria for investors included an empowerment component.

Sapoa executive director Brian Kirchman welcomed the postponement, saying it would give interested investors more time to compile competent submissions.

Business Day