Transnet targets Carlton centre and 14 other properties for sale in South Africa

Transnet plans to sell 15 non-core properties across South Africa, including Johannesburg’s iconic Carlton Centre, shopping centres and golf courses.

Transnet is preparing to sell 15 commercial properties across South Africa as the state-owned logistics company moves to dispose of assets it no longer considers central to its operations.

The portfolio includes the iconic Carlton Centre in Johannesburg, shopping centres, golf courses, vacant land and other commercial properties. The sale could draw interest from government institutions and private-sector investors seeking opportunities in South Africa’s commercial property market.

The Carlton Centre is the most prominent property in the portfolio. Transnet bought the 50-storey Johannesburg landmark from Anglo American in 1999 for R33 million. Standing at 223 metres, it was once South Africa’s tallest building before the 234-metre Leonardo in Sandton took the title.

The property has faced years of decline as Johannesburg’s central business district struggled with deteriorating infrastructure, falling investment and rising vacancies. Transnet moved its employees from the building to Midrand in 2018 as part of plans to allow the Carlton Centre to be refurbished and redeveloped.

Carlton Centre sale follows failed R900 million deal

Those redevelopment plans never materialised. In 2023, Transnet sought to sell the Carlton Centre for about R900 million, but the deal fell through after bidders failed to provide evidence that they had sufficient funds to support their offers.

Transnet later considered refurbishing the building itself, including a proposal to convert parts of the property into affordable housing. However, financial pressures at the state-owned company have since resulted in the Carlton Centre and other properties being classified as non-core assets.

The disposal process will begin with a 30-day Right of Refusal period for the public sector. National and provincial government departments, municipalities, state-owned companies and other public entities will have the first opportunity to acquire, lease or take transfer of the properties for public use.

If no government department, municipality, state-owned company or other public entity submits a formal expression of interest within the 30-day period, Transnet will proceed with a public Request for Proposals to the private sector.

15 properties included in Transnet sale

The properties identified for disposal are Cape Town Site 9 (motor dealership land), Kenridge (Willow Bridge), Bellville Marshalling Yard, Roggebaai Locality Plan in Cape Town’s Foreshore Precinct, Humewood Erfs 1205 and 1206, Mount Frere Shopping Centre, Arcadia Park, Umlazi Mall Megacity, Oribi Plaza in Port Shepstone, Durban Station Precinct No. 1 in Greyville, Humewood land, Avion Park Golf Course, Bloemfontein Golf Course and Club House, Carlton Centre, and Messina Superspar in Musina.

The planned disposal comes as Transnet reviews its property holdings and seeks to focus resources on assets that support its core logistics business. The Carlton Centre, meanwhile, remains one of Johannesburg’s best-known landmarks and one of the most closely watched properties in the portfolio.