Johannesburg municipality provides update on Metro Centre and cost of alternative rental
· Citizen
The refurbishment of Johannesburg’s Metro Centre is progressing slowly while the city spends millions a month on alternative accommodation.
Assessments done on the building following a fire forced the closure of the 50-year-old office block and the search for temporary offices.
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A 24-month lease for a property was signed last year, with the municipality this week denying reports that the deal was causing billions in unnecessary expenditure.
Over R2.9 million rental
The Metro Centre has been closed since 2023 after being declared uninhabitable and subject to refurbishment plans.
Johannesburg Property Company last May denied the building would be demolished, with figures for the refurbishment exceeding an estimated R3 billion.
The city released a statement earlier this week aiming to clarify “misleading” information regarding the leasing of its temporary offices in Newtown.
The property leased by the city spans 45 221m2, but it states that it is only occupying 31 176m2 of the available area, as well as 1 742 parking bays.
In line with earlier reports, the rental is R95 per square meter, excluding services and the parking bays.
If only being charged for the space occupied, the city pays R2.9 million per month for the floor space, or R71 million for the duration of the 24-month lease.
“The lease arrangement is a temporary operational measure implemented under constrained circumstances and remains subject to ongoing cost management and optimisation,” the city stated.
Office space optimisation programme
Assessments on the abandoned Metro Centre were signed off by structural engineers, emergency services risk assessors and the Department of Labour.
Core issues with the structure include widespread water damage and “long-standing maintenance deficiencies”.
The long-term solution is still a grand refurbishment of the Metro Centre, featuring a hotel and a shopping centre.
As of this week, a public-private partnership transaction advisor had been appointed, but feasibility and governance agreements were still pending.
The city is working towards an “office space optimisation programme” that will enable it to make more efficient use of public assets.
“This intervention aims to transition the city from a decentralised, lease-dependent accommodation model toward a consolidated, compliant, safe and financially sustainable municipal headquarters.
“Further updates will be provided as key milestones in the Metro Centre refurbishment and office space optimisation programme are achieved,” the city concluded.
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