Cape Town - Transnet and its pension and retirement funds had agreed to sell up to 100 percent of the V&A Waterfront, the country's top tourist spot, its chief executive, Maria Ramos, said yesterday.
Ramos declined to give a value for the V&A Waterfront, which covers 603 859m2 of development rights, saying she did not want to influence the bidding process.
The planned sale is part of a drive by state-owned Transnet to dispose of non-core assets as it seeks to become a focused rail and logistics group to help the government achieve its 6 percent economic growth target by 2010.
"What is up for disposal will be between 74 and 100 percent of the V&A Waterfront," Ramos said.
The V&A Waterfront is one of South Africa's prime real estate assets. Its shops and hotels attract about 22 million visitors each year to Cape Town's beachfront.
Transnet's retirement fund, which is one of the shareholders, has not decided whether it wants to sell its 22.6 percent stake. The fund will weigh up whether to increase the shareholding to 26 percent, to sell it, or to swap it for an attractive property portfolio.
The preferred bidder will be announced in September.
Ramos said Transnet could still cancel the sale process and opt for a listing if it did not get the right offer.
"The objective is to realise maximum value for the investment," Ramos said.