THE Arandis Town Council last month sold its Khan Lodge for N$900 000, an amount that is N$52 000 less than its market value.
Residents explained that the 32-room property on 2 977m2 was originally built by the Rössing Mine for its workers, but was handed over to the council when Arandis became a town in the 1990s.
It then became a source of income to the council when it was rented out as bachelor flats.
Two similar lodges, Welwitschia and Kudu, are apparently in private hands and still being rented out.
The town council’s spokeswoman, Irene Jacobs, told The Namibian this week that due to a lack of interest and competition, the lodge was closed and abandoned, became dilapidated and was vandalised.
“Khan Lodge was not a major funds generator for the council,” she said.
With the new owner, only identified as Uibasen Cleaning CC, the council will continue to collect monthly revenue in the form of rates and taxes, as well as a betterment fee on the premises. It is uncertain what the new owner intends to do with the property.
Although original open bids were between N$1,8 million and N$2 million, the bidders were not able to secure the funds, and eventually the deal was closed with Uibasen at N$900 000.
“From the sale, the council will secure much needed income,” last month’s council minutes noted. Although it may not have been what the council was hoping for in terms of profit, the new owners will hopefully develop the lodge into something that will be an economic boost to Arandis, the council noted.
Arandis recently launched its five-year strategic plan with the hope of stimulating the local economy through attractive investment opportunities.
In the past, the town was dependent on Rössing Mine, but it has begun to shake off that dependence and adopted an approach or becoming an independent economy that is rather a business partner with the mines surrounding it, especially when it comes to local procurement, logistics support and cargo storage and handling.
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