Sales worth R60m signal property auctions uptick
Category Auction News
A FORMER Tiger brands mill in Queenstown attracted keen bidding at the Aucor property auction in the Park Hyatt Hotel in Johannesburg’s Rosebank, on Tuesday, when sales worth R60m were confirmed.
Director Mark Kleynhans said the auction showed an increase in registered bidders, which stimulated strong and active bidding.
“Property auctions are picking up. Another positive indicator is that there seems to be an uptick in the residential sector. Buyers are homeowners as well as investors. Sales of three residential lots were confirmed from the floor.
“The mill was a highlight of the auction and attracted brisk bidding from four registered bidders,” Mr Kleynhans said. “We were very happy with the overall performance of the auction.”
The five-storey mill, originally owned by the Kaffrarian Steam Mill company, and which is now a multipurpose commercial building, was sold and confirmed for R11.2m. The complex, on a 32,500m² erf with overall site improvements of about 43,597m², offers a 3,000m² clear-span modern warehouse facility and large covered yard.
There are various buildings, including offices, silos, a warehouse, and residential unit.
There is a large trucking workshop with diesel pumps among other improvements.
A Spar shopping centre in Lydenburg, described as a building with a “rare quality and design” was keenly contested. There were 11 registered bidders, who after an opening bid of R20m, pushed up the price to R36.8m which was confirmed from the floor.
“The players are back in the game,” auctioneer Darren Winterstein said.
The shopping centre offers a gross lettable area of 4,118m² and a gross income of R3.9m a year. The anchor tenant is Super Spar, and other tenants include Absa and Wimpy.
Bidding was less robust for a Pick n Pay shopping centre in Hoedspruit. The centre, with gross lettable area of 8,035m² and gross income of R6m a year, has Pick n Pay, FNB, Mr Price, Spur, the Post Office, Pep Stores and Sheet Street as tenants. The hammer price of R40m was well below the reserve price and the lot was passed over.
Another success story was the Edgars building in Klerksdorp. The three-storey, stand-alone building is described a “retail gem”. Edgars is the sole tenant and its lease expires in 2016. The building with gross lettable area of 4,223m² on an erf of 1,983m² and a gross income of R2.13m a year, was sold and confirmed from the floor for R18.5m.
Four main beach apartments in Jeffreys Bay fetched R1.85m. Demand for leisure homes is not strong. “Many owners are offloading their homes for economic reasons and buyers in the market are fussy. They only want investment grade quality homes,” Mr Kleynhans said.
Sales of three homes in Germiston, in Montana Gardens, Pretoria, and at Heuningklip Agricultural Holdings, near Krugersdorp, were confirmed from the floor. A unit in Wychwood Lodge, Germiston sold for R360,000; a unit in Twee Riviere Village, Montana Gardens, fetched R525,000 and large farmhouse in Heuningklip was knocked down for R3.6m.
There were no offers for 124ha of vacant land in Meyerton, but a hotel and conference venue in Rosendal with 17 double- bedrooms en suite, chapel, library and restaurant fetched R2m.
A one bedroom unit in The Raphael, Mandela Square, received a bid price of R1.7m. The unit, described as ideal for corporate rental, has a rental potential of R250,000 a year.
A five-bedroom house with dam and river frontage in Honeydew failed to attract interest and was passed over.
In Turffontein, a house and apartment block with a gross lettable area of 840m², reminiscent of pre-Second World War architecture, came under the hammer. The 16 bachelor flats and 11 fully let rooms earn a gross income of R32,800 a year.
The complex fetched R1.1m.
A car sales lot and offices with a gross lettable area of 2,000m² in Roodepoort received a top bid of R1,5m, and an industrial workshop with a gross lettable area of 1,150m², sold with vacant occupation fetched R2.2m.
Eight flats with a gross income of R40,000 a year, on Paragon Street, Roodepoort, were knocked down for R1.95m.
Author: Warehouse Finder
