Johannesburg: The Passenger Rail Agency of South Africa (PRASA) has inaugurated a modern 700-bed accommodation facility aimed at providing affordable and conveniently located housing for students in Braamfontein, Johannesburg. The facility’s launch signifies a notable achievement in PRASA’s mission to utilize its property holdings for socio-economic development and sustainable rail operations.
According to South African Government News Agency, the Lab Building Student Accommodation was developed by transforming an underutilized office building owned by PRASA into a lively hub for student living. The 12-storey building accommodates students from nearby higher education institutions and is strategically positioned near Johannesburg’s integrated public transport network and the retail precinct at PRASA-owned Johannesburg Park Station, ensuring enhanced mobility for its residents.
PRASA’s secondary mandate, executed by its subsidiary Intersite, involves generating revenue from its extensive property portfolio. Intersite’s role is to maximize the commercial potential of PRASA’s non-rail assets, contributing to the organization’s long-term business sustainability. The student accommodation project is a joint development between Intersite and Elevated Fund.
PRASA Board Chair Nosizwe Nokwe-Macamo highlighted the initiative’s significance, stating, “Through Intersite, we are reimagining the role of transport-linked properties as catalysts for social and economic progress. This project embodies that commitment, transforming underutilised buildings into a space that provides safe, affordable, and dignified accommodation for students who represent the future of our country.”
The PRASA’s Rail + Property strategy aspires to increase revenue to R2.5 billion by 2035. This goal is supported by Intersite’s efforts in property development, co-investments, lease buybacks, and station precinct modernisation, which aim to ensure financial sustainability, promote renewable energy, and develop fibre optics for future revenue generation.
Intersite Board Chair Ayanda Peter emphasized the board’s responsibilities, stating, “Our task as the Board is to ensure that Intersite operates with commercial discipline, strategic agility, and developmental purpose, providing a true example of how State-owned entities can deliver both profit and public value.”