South Africa plans to create the South African National Property Company to manage a large portfolio of state-owned real estate estimated at about R155 billion (around $9.2 billion).

According to government authorities, the new entity will oversee approximately 88,000 buildings and nearly 5 million hectares of land owned by the state. The initiative aims to improve the management and value of public assets while potentially strengthening the country’s long-term financial resources.

The plan also includes redirecting public spending currently used to rent buildings from private landlords. Each year, the South African government spends about R6 billion on leasing private properties. Authorities intend to invest these funds instead in the development, rehabilitation, and maintenance of state-owned properties.

The project comes after decades of poor management that have left many public buildings in a state of disrepair or subject to unauthorized occupation. Government estimates indicate that the maintenance backlog for state properties has reached approximately R28 billion.

Officials say the creation of the new company is part of broader efforts to improve the management and productivity of public assets and to ensure that state property contributes more effectively to the country’s economic development.