Rössing selling all its residential properties

After 40 years Rössing Uranium Limited (RUL) has now decided to sell all remaining residential properties in Swakopmund. This surprising development is outlined in a letter sent by Rössing to Town Council. Council approved the application at its most recent meeting and decided that part of the proceeds will go to Council.

This decision will literally be the end of an era, as Rössing has since its inception formed a part of Swakopmund. According to the Agenda of the most recent Town Council meeting, Rössing entered into a lease agreement with Council on 27 April 1976 for a period of 50 years. “The basis of the lease agreement was that RUL would lease land, service the plots and build houses on these plots belonging to the Swakopmund Municipality.
RUL was also responsible for the maintenance of these houses which would be leased only to their employees,” it states in the Agenda.
Close to four decades later, Town Council received a letter signed by Germano Musili, Rössing Manager: Human Resources. In the letter it states that, “considering Rössing Uranium Limited’s recent business model placing focus on its core purpose of business, the Executive Committee decided to sell all its remaining residential properties forming the basis of the 1976 agreement.”
In terms of the notary deed of lease 104 plots were made available to RUL at an annual rent. Currently only 66 plots are still available, for which Rössing is paying an annual rent in the amount of N$255 001.23. The remaining 38 plots were already sold in terms of Council’s resolution passed in November 1990. “Although RUL has not yet obtained valuations for all properties, it is estimated that Council will receive at least N$15 780 135 from the sale of the plots,” it states in the Agenda.
At the most recent meeting, Council approved the sale of the remaining plots and that RUL obtains the valuations at their cost to determine the purchase price. The distribution of the purchase price will be determined as follows. Council will receive 40% for the land value, while Rössing will receive 60% for the developments on the land.
Furthermore it was decided that the current residents of the properties will be given first option to buy. Should the plots not sell in a period of 90 days, the remaining plots will be sold to the general public by closed bid.

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