The Department of International Relations and Cooperation’s (Dirco) properties around the world are aged, underutilised and have led to a costly reliance on leasing characterised by currency fluctuations and maintenance challenges.

South Africa’s international state-owned property portfolio consists of 29 chanceries, 36 official residences, and 88 staff housing spaces spread across the globe.

On Wednesday, Dirco Minister Naledi Pandor and her senior officials briefed the Portfolio Committee on International Relations on South Africa's international diplomatic property portfolio.

Officials are looking to cut back on several properties to consolidate overseas offices and save on costs.

Addressing the committee, Pandor said their primary objective was to enhance property utilisation.

"This is to arrive at a point where we cut costs and boost operational efficiency across our global properties. We are dealing with a very difficult situation. We have developed a strategy we hope to address challenges relating to ageing properties, high leasing expenses, maintenance gaps and our skills deficiency.

"We have placed a focus on efficient maintenance management between all our missions. We are also revising rental thresholds and norms in order to secure leases that ensure value for money and allow for some flexibility given the nature of our operations," she said.

Dirco chief financial officer Hlengiwe Bhengu said extensive market analysis was done before lease agreements and terminations, as well as active contract management and enhanced training for negotiation and contract management.

"An analysis of expensive cities has commenced for finalisation in the third quarter. This is to inform strategy whether to obtain alternative cheaper accommodation, purchase/construct," she said.

"The challenges faced by the Property Portfolio are that the properties are aged and underutilised properties leading to reliance on costly leasing, forex fluctuations and maintenance challenges due to property rentals, reactive property maintenance approach due to budgetary constraints and insufficient capacity and skills for professional property management."

Previously, News24 reported that several chancery's and official residences in Europe were to undergo maintenance.

In Copenhagen, Denmark, SA's chancery and ambassador's official residence will undergo repairs and maintenance at the cost of R14.8-million.

Other costs include:

• Vienna, Austria: Renovations at the official residence at the cost of R4 million;
• Rome, Italy: Repair of the official residence basement at the cost of R5 million;
• Brussels, Belgium: Upgrading of electrical and plumbing system and repair to the roof at the cost of R4.2-million;
• London, United Kingdom: Condition assessment and repair and maintenance of staff houses and chancery. Cost estimated at R7.2-million.

Furthermore, Bhengu told MPs one of the key plans was the repurposing of existing buildings.

"Such buildings include ones that are not serving the purpose it should serve. There is also no cost-effectiveness around it hence the repurposing means that such properties are going to be reconstructed as something else.

"It will either be apartments for the staff based on the report and the legal requirements of the country. If it is a chancery, we are going for repurposing and making it apartments where you can accommodate three or four officials in that environment."