Metros to reap rewards from PRASA’s R7.8 billion property development pipeline

By Thebe Mabanga  

South Africa’s metropolitan municipalities are reaping the rewards of the Passenger Rail Agency of South Africa (PRASA) recovery, benefiting from train station refurbishments and the restoration of 35 of its 40 corridors as passenger rail services return.

PRASA’s property division also has a pipeline of 24 developments worth R7.8 billion to be rolled out over the next two years.

The agency spent R21 billion during the 2024/2025 financial year and R52 billion in capital expenditure over the past three years, some of which was directed to metropolitan areas.

PRASA CEO Hishaam Emeran described metros as “valuable stakeholders” with whom the agency “interacts extensively through the Inter-Modal Committee to provide for their rail passenger needs.”

Metros also host PRASA’s key property projects, which since April have been managed by its newly formed subsidiary, Intersite Asset Investment.  

In the 2024/2025 financial year, Intersite generated R708 million in revenue, surpassing its R675 million target, from rental income and asset disposals.

In Cape Town, Intersite completed the Goodwood Social Housing Project and the Diep River affordable housing development.

Near its head office at Park Station in Johannesburg, PRASA completed the 700-bed Braamfontein Res Lab student accommodation, addressing one of higher education’s most pressing challenges.

PRASA adopts a transit-oriented development approach to its property projects in partnership with municipalities, viewing this as a major driver of growth and future revenue.

A total of 24 out of 26 development leases, valued at R7.8 billion, have already been finalised.

Emeran said PRASA’s Rail and Property Strategy aims to grow revenue to R2.5 billion by 2035, anchored in property development, co-investments, lease buybacks, and station precinct modernisation.

“The idea is to locate developments in the vicinity of the station such that you can walk from your residence and within five minutes you are in