“Despite economic challenges the retail sector has turned in a good performance - particularly in recent years, and on the day of the auction the retail properties were hotly contested, proving to be quality auction stock and selling at yields ranging from 6.2 percent up to 12 percent, says Bradley Stephens, MD of Broll Auctions and Sales. “The auction was well attended, paving the way for the success of future auctions, with our next event scheduled for Tuesday 9 June at the Wanderers Club in Johannesburg.”
Says Norman Raad, founder and director of Broll Auctions and Sales: “Buyers at our inaugural auction were a mix of private investors, private equity funds and individuals, with a Linden mixed-use residential and retail block – ripe for a prime development opportunity, and a landmark building in Port Elizabeth tenanted by Tiger Wheel and Tyre as their flagship fitment centre attracting the most bidders. The purchasers of the Linden property have indicated they plan to redevelop and refurbish this well-positioned property.”
Sales concluded at the auction include the ideally situated Middelburg Shopping Centre with a GLA (gross lettable area) of 7622sqm and national tenants including Pick n Pay, which achieved a price of R26.4 million; a 2489sqm retail property in Newcastle in KwaZulu-Natal which sold for R12.3 million; the 8776sqm retail property in Port Elizabeth tenanted by Tiger Wheel and Tyre which was acquired for R9.6 million and the mixed-use property in the prime Linden strip in Johannesburg which fetched R9.7 million.
Adds Raad: “In addition, an industrial property in Springs, comprising a GLA of 4148sqm set on a stand of 31 424sqm sold for R9.75 million, a nationally tenanted warehouse and office property in Port Elizabeth comprising 4041sqm achieved a selling price of R12.5 million, while a further sale was concluded for a package of retail properties which were combined and acquired by a private equity fund for an undisclosed amount.
“Retail property in general appears to be experiencing a great deal of movement and trade within the market and appetite from private buyers is strong and not surprisingly, particularly for properties with strong tenants in place. Interestingly, properties situated in more remote areas also received considerable interest and prices on the auction.”