Cash-strapped ANC sells
The historic but dilapidated building will be turned into affordable rental accommodation
The ANC’s iconic Shell House i n downtown Johannesburg, where Nelson Mandela planned the democratic takeover of the South African government, has been sold to union investment company Hosken Consolidated Investments (HCI). It could be housing 500 families by as early as next year.
Shell House was the ANC’s first headquarters after its unbanning in 1990, and was the site of a 1994 massacre that threatened to undo preparations for the first democratic elections.
The now dilapidated high-rise, which the ANC itself described as an “eyesore” in an internal report last year, is going to be turned into affordable rental accommodation as part of a growing portfolio of such units owned by HCI. Rentals are expected to start at about R3 000 a month.
HCI is a publicly listed company and was originally established as an investment vehicle for the Southern African Clothing and Textile Workers’ Union (Sactwu), which remains the biggest shareholder in the company.
Sactwu, in turn, is an important affiliate of trade union federation Cosatu, an alliance partner of the ANC.
The ANC has often found itself severely cash-strapped in recent years, and HCI operates in several regulated industries and will be significantly affected by government decisions such as whether set-top boxes for digital television will have encryption capabilities.
The sale of the building was initially shrouded in secrecy, with ANC treasurer general Zweli Mkhize refusing to answer the Mail & Guardian’s questions about it two weeks ago. Not even the ANC’s national executive committee (NEC), the party’s highest decision-making structure between national conferences, was told who the buyer is or how much the building was sold for.
After the M&G independently obtained details about the sale agreement, however, insiders said the secrecy was because of commercial considerations and should not be read as suspicious.
“The price is going to be public in the deeds office when the transfer is completed, and HCI is a listed company,” said one person with intimate knowledge of the deal, speaking on condition of anonymity.
“[The price] is absolutely market related … Everyone was aware of the reputation risk and made sure of that.”
In terms of the agreement, HCI will hold 75% of the building and the ANC’s property holding company, Dakawa Properties, will retain the remaining 25%.
The M&G understands that in October last year the ANC NEC resolved to attach conditions to the sale, such as retaining control of part of the building to be used as the party’s heritage museum. This week several parties involved confirmed the intention to create a museum of some kind, but no firm plans seem to exist yet.
An NEC member who spoke to the M&G on condition of anonymity said Mkhize had only told the September NEC meeting that Shell House was sold for a “substantially acceptable amount”.
The sale agreement was apparently concluded about four months ago, but has not yet been registered with the deeds office.
Yet HCI appears to be hoping to start converting the office block into residential units early in the new financial year. Property management agent Broll has given many small traders working from the ground floor of the building until the end of March to vacate the premises.