Increasing crime, collapsing infrastructure, and widespread property invasions are believed to be behind private and government-owned commercial properties across Mthatha being sold at rock-bottom prices amid an exodus from the former Transkei capital.
But some business people have criticised those leaving, saying they were selling their problems and should have been more proactive in dealing with squatters.
Among the properties is the Eastern Cape Development Corporation’s (ECDC) contentious Windsor Hotel, which is said to have been hijacked by a crime syndicate. The hotel, which includes retail shops next to it, was deemed unsuitable for human occupation more than a year ago.
“This property boasts high foot traffic and excellent visibility, as every vehicle has to pass it whether entering or leaving Mthatha on the N2,” an advertisement for the site said on real estate portal Property24.
The corporation has been trying to offload the property for several years, resorting to unsuccessful public auctions starting in July 2021 with the most recent auction held online on March 27.
Though it’s not clear if the hotel was successfully auctioned off, ECDC spokesperson Malithathwe Nombewu said however, the entity was not in a position to comment on the matter involving the sale of the hotel.
Meanwhile, another Mthatha property up for sale is the City Centre Shopping Complex in York Road which has been listed for R117m. The property has tenants including Studio 88, Capitec, African Bank and Old Mutual.
It also houses some King Sabata Dalindyebo local municipality offices. The Copperlake Residential Complex consisting of upmarket flats, listed as being sold in 2023, is also on sale. It has 315 apartments and apparently has contracts with the Nelson Mandela Academic Hospital and Mthatha General Hospital according to Property 24.
It boasts a guardhouse and controlled access.
The Phoenix building, popularly known as the Old Sanlam building and now houses the Daily Dispatch offices in Leeds Road as well as several other tenants, is also up for grabs.
Also added to the list is Le Pearl Grande Events and Function venue and the Le Pearl Boutique Hotel, both owned by late Mthatha entrepreneur Mkhululi “Skoni” Kubukeli who was found murdered in 2022.
The auctions took place at the East London Golf Club on March 19 according to the site.
It was reported that Kubukeli was gunned down at his Le Pearl Grande Events and Function venue near Corhana on December 31, 2022, just hours after celebrating his daughter’s wedding.
Patrick Jali, an estate agent at Re/Max Border-Mthatha said crime may have been a factor behind the sales and the depressed market made new sales difficult.
“I am not 100% sure what the story is, but some people are selling their properties, saying they are no longer interested in being in Mthatha. You have lots of sellers and a few buyers, which is a bit challenging. It is not a good sign, but we hope things will pick up soon.”
Mthatha entrepreneur and Eastern Cape Chamber of Business president Vuyisile Ntlabati however blasted ECDC for auctioning the properties. He said organised business in the area had submitted proposals to government with the hope of acquiring and using some of the properties that later became vacant.
“It’s been 20 years of trying but nothing moved forward. Now our land will go to the highest bidder. It’s not good for us [local business]. When we wanted to take over some of their properties, they dragged their feet.”
His words were echoed by Mthatha Concerned Stakeholders Forum co-ordinator and former municipal councillor Pasika Nontshiza who accused ECDC of trying to solve a crisis with another crisis.
“Whose interests are being served here? Most of the buildings are hijacked and are in the wrong hands, now they think they can just make their problems go away to the successful bidder. What about the people inside these properties, they are eligible to the right of refusal first,” he said.
But community activist and Action SA provincial executive committee member Phikolomzi Adonis said having properties sold to private investors could have positive spin offs as they would be able to invest a lot of money into taking better care of the properties they acquire.
King Sabata Dalindyebo local municipality spokesperson Sonwabo Mampoza said the sales of properties could act as a catalyst to bring in huge investments from outside the area.
And that could also lead to the creation of huge job opportunities in the process.
“In terms of property refurbishments, this could also help enhance the physical appearance of the town while also contributing towards the municipality’s revenue collection”
Daily Dispatch
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