Pretoria: The Department of Public Works and Infrastructure (DPWI) is set to issue a Request for Information (RFI) for the redevelopment of the Telkom Towers precinct in Pretoria. This initiative aims to transform the dormant government-owned property into a productive, income-generating asset.
According to South African Government News Agency, Public Works and Infrastructure Minister Dean Macpherson stated that the redevelopment is estimated to cost between R1.8 billion and R2.2 billion. The project will involve refurbishing all nine buildings in the precinct, resulting in 106,000 square metres of gross leasable area available for generating state revenue through existing or new clients.
During a media briefing in Pretoria, Macpherson highlighted that the project offers an opportunity to relocate government departments from costly private leases into quality state infrastructure. Additionally, it will create capacity for the department to supply accommodation to the private sector, contributing to the creation of over 5,300 direct construction jobs.
Macpherson emphasized that the RFI will assess the feasibility of incorporating adjacent government assets into the project, supporting integrated planning and urban revitalization as part of the Tshwane Inner City Regeneration Programme (TICRP). The RFI is expected to be formally published shortly, marking a crucial step in the process to revitalize Telkom Towers.
The RFI will seek market input on refurbishing and upgrading the asset to meet regulatory and government accommodation standards. Macpherson highlighted that the department had previously spent approximately R1.4 billion on acquiring, renovating, and maintaining the complex, with significant financial losses attributed to historical mismanagement.
The redevelopment project is part of a broader effort to reform how the government manages public assets and large-scale infrastructure projects. Macpherson stated that changing the department's strategic direction requires intentional decisions to fundamentally alter how the government approaches large-scale projects.
An MOU with the Infrastructure Finance and Implementation Support Agency (IFISA) has been finalized, paving the way for the RFI. The process will test public-private partnership (PPP) delivery models, assess commercial viability, and explore sustainable long-term asset performance strategies.
Macpherson mentioned that properties under consideration include Public Works House and the Central Government Offices building. Together with Telkom Towers, these projects are expected to create over 12,700 construction jobs and unlock approximately 212,000 square metres of gross leasable area.
The Minister stressed the importance of utilizing this redevelopment opportunity to cut down on costly private sector leases and enhance economic development. The project is part of wider reforms aimed at improving the department's operations and utilization of state-owned assets.
Macpherson concluded by stating that working with the private sector, generating revenue, and reducing the department's R6 billion leasing portfolio are central to the reform program, which aims to open state assets for investment and demonstrate the department's reform agenda is taking effect.