Old Swakopmund municipal building for sale

Since the completion of Council's new office block on Rakotoka Street the grand old municipal building in the centre of Swakopmund has struggled to define its place.

The sale of the old heritage building by way of closed bid auction is now on the cards again.

At its last meeting, Swakopmund Town Council approved a recommendation to set a minimum price of N$14.5 million for the sale of the property located at Erf 989.

In December 2013 the property was valued by Mr Abel Schoeman, an appraiser appointed by the High Court, in the following way: N$8 million for 2 147 m² of land; N$6 075 000 for the main building; and N$150 000 for other improvements, to arrive at a total value of N$14 225 000. The Trust Estate Co valued the property at around N$14.5 million.

In January 2010 the Trust & Estate Company had assessed the same property to be worth N$11 880 000, whereas Nasikama Property Valuation Consultants set the value at N$18.3 million. On 28 January 2010 Council set an upset price of N$15.1 million, but this was later repealed in June 2011 and a new minimum price of N$20.1 million was set.

The “new owner will have to invest considerable funds in order to renovate the building, which is deteriorating,” but, as the property is a listed building, any future alterations and renovations will have to comply with the Town Planning Scheme and would be subject to conditions and requirements set by the National Heritage Council.

The NHC prohibits the demolition of any building in the conservation areas, which is older than 50 years, without the written consent of Council.

The municipality will consider making alternative parking space available as there is limited on-site parking at Erf 989. A Council resolution taken on 28 November 2013 said that in the absence of on-site parking Council would in future adopt a policy whereby, for the Conservation Area, business enterprises can acquire and develop alternative parking at a cost and location determined by Council.

Parts of the old municipal building are currently occupied by the National Housing Enterprise, which will continue to lease the management committee room until November 2014 for a monthly rental of N$4 101. The Electoral Commission of Namibia will use Room 20 until 2 March 2014 as part of the ongoing voter registration campaign.

The background to the auction is that the Ministry of Safety and Security had first applied in 2011 to buy the property, but for unspecified reasons, the ministry cancelled their application in August. The property was then sold by closed bid to Luxury Investments 111 (Pty) Ltd for N$21.6 million, but the sale fell through and was cancelled in April 2012.

Full possession of Erf 989 will only be given on transfer of the Deed of Sale, Council said last week. If the latest move to sell by closed bid is not successful the municipal engineering department would continue to hold responsibility for the maintenance of the building.