Armscor billboard seen as a start in own revenue generation

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“Revenue generation” and “sweating assets” have been part of Armscor management communications for at least the past five years in efforts to lessen dependency on its annual funding grant from the national defence budget.

This has seen concepts of boutique hotels, conference centres, lodge type accommodation and even a new headquarters building for Defence Intelligence floated. None have yet shown any progress to commencement with civil engineering works on site ahead of construction.

One concept has, however, made it to reality.

“Armscor moved a step closer to generating revenue with installation of a digital billboard at its headquarters in Erasmuskloof, Pretoria,” the State-owned company resorting in Thandi Modise’s ministry said in its third newsletter of the year.

“This initiative follows the continued decline in transfer payment from the DoD, which resulted in reduced funding allocations and shortfalls to meet Armscor’s current operational needs

“The project started in 2018 when project manager Nonduduzo Nyathikazi, conducted a feasibility study on erecting a billboard on Armscor premises for advertising purposes. A multitude of specialist advertising houses were approached to understand and determine the feasibility of such a venture.

“Different models were considered and it seemed the most attractive to Armscor would be leasing land to the preferred advertising organisation while
they own the billboard, generating income passively.

“The objective of the initiative is aligned to Armscor’s strategic objective of revenue generation, which seeks to leverage the ideal location of Armscor property with an advantage of a prime position for an advertising billboard.

“Armscor owns a number of property assets and intends to sweat them. Armscor’s intention is to lease a portion of its property to a service provider who in turn will rent out billboard space to various customers to ensure income generation,” according to the newsletter.