City could earn N$100m with land deals

The City of Windhoek says it could unlock N$100 million in potential land-sale revenues after five developers involved in selected township development projects expressed willingness to pursue early exit arrangements under public-private partnership deals.The initiative follows a 2023 council resolution, which the City said “authorised negotiations for early exit arrangements as a way of accelerating township development, improving land delivery and reducing the City’s exposure to risks associated with delayed project implementation”.According to a progress report presented at the municipal council meeting last week, the municipality explained that “once fully implemented, the early-exit land sales have the potential to generate more than N$100 million in revenue for the City”.Under the proposed arrangements, developers may acquire qualifying land subject to agreed conditions.These include approved subdivision layouts, environmental requirements, property valuations and agreed payment conditions.“The agreements also provide for development to commence within two years of the relevant addendum being concluded,” the City said.The early exit arrangements are intended to address longstanding delays in township development and make more land available for development.The negotiations remain subject to the applicable planning, environmental, valuation and payment requirements before qualifying land can be transferred to developers.Land designated for public open spaces, streets, municipal purposes and other public uses would remain under the City.A question of valueDocuments presented to the council provide insight into some of the negotiations, including a dispute over the valuation of two properties in Prosperita.A valuation report prepared by the municipality on 11 March 2024 placed the combined value of erven 72 and 73 in Prosperita at N$12.04 million.The valuation was prepared for the early exit negotiation team under council resolution 161/07/2023 and subsequently presented to the developer during a meeting on 22 May 2024.According to the meeting minutes, the City's manager of valuations, Isack Hendjala, explained that the N$12.04 million valuation represented the municipality's offer and was based on market information obtained from title deeds and a property market study.Although comparable properties had attracted higher valuations, the City said prevailing market conditions had been considered, resulting in a downward adjustment.The minutes indicate that the valuation reflected a potential selling price of N$1 210 per square metre, while the municipality was asking N$236 per square metre after accounting for development costs and the developer's profit.The developer, however, indicated that its own valuer had arrived at a selling price of N$1 050 per square metre.He also questioned whether the City's valuation adequately reflected the financial risks developers had carried over the years, particularly given changes in property prices between 2014 and 2024.As an example, he referred to property values declining from N$12 million in 2016 to N$9.5 million in 2024.The developer was given time to consider the municipality's offer and the opportunity to engage its own valuer to discuss differences between the two assessments.nikanor@nmh-hub.com.na

City could earn N$100m with land deals

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Namibian Sun 2026-11-04

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City could earn N$100m with land deals

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Namibian Sun 2026-11-04

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