PIC seeks independent valuers for its multibillion-rand property portfolio
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South Africa's Public Investment Corporation has issued a tender to appoint professional valuers for its expansive property portfolio, months after a R430m valuation scandal at Lanseria International Airport.
South Africa's Public Investment Corporation (PIC) plans to launch a mass campaign to value its expansive property portfolio, which stretches across South Africa, the rest of Africa and Europe. The asset manager, under the leadership of Patrick Dlamini, has issued a tender seeking experts to value properties directly under its custody for five years, starting with the financial year ending in March.
Among the requirements, interested valuers should hold a professional designation with the South African Council for the Property Valuers Profession (SACPVP), while valuations of properties located outside South Africa will be undertaken in line with local legislation and recognised standards. The tender document indicates that property under the PIC's management covers a lettable area of about 4.3 million square metres, ranging from commercial office properties, retail properties and industrial properties to undeveloped land.
The purpose of the tender is to appoint service providers with the professional capability and independence to perform property valuations across designated asset classes, for purposes that may include acquisition, disposal, financial reporting, investment, impairment testing, lease transactions, mortgage or security purposes, litigation and expropriation support, portfolio reviews and any other lawful valuation purpose required by the institution.
One of the mandates given to Dlamini when he took office just more than a year ago was to clean up the PIC's unlisted portfolio, of which the property portfolio is a large chunk. The PIC's property investments span large-scale commercial developments, affordable housing, inner-city regeneration and support for emerging and black property developers.
The importance of having valuation experts available was illustrated by the R430m settlement the PIC entered into with Acapulco after a valuation dispute over the latter's 25% stake in Lanseria. A PwC report commissioned by Dlamini into the transaction found several flaws, including that the PIC agreed to terminate the mandate of accounting firm BDO, which had found Acapulco's stake to be worth about R330m, much less than the R600m Acapulco owed the PIC at that stage.