Over 40 commercial, industrial and residential properties, with an estimated market value of over ZAR600 million, went under the hammer at Summer Place in Hyde Park, making the auction the largest property sale ever undertaken in South Africa.
Nine City of Tshwane land releases were up for sale and saw fierce bidding, especially for industrial land in Waltloo. Joff van Reenen, Director and Lead Auctioneer at High Street Auction says, “The profile of industrial space has shifted from heavy manufacturing to light manufacturing, warehousing and distribution and Waltloo’s ideal location presents lucrative investment opportunities in the sector.”
“Vacant occupation as promised by City of Tshwane, if so desired by the investor, will allow them to roll out their acquisition strategies from day one. That some of the properties sold have existing tenants with long term leases in place also guarantees consistent returns,” adds van Reneen. Due to the excellent incentives provided by the Tshwane Council, the auction also set a new record for prices paid for City of Tshwane’s land releases. Lot 22, zoned for industrial use sold for ZAR12.3 million
Lance Chalwin-Milton, joint MD of The High Street Auction Co says, “It is a red letter day in High Street Auctions’ history and the results in many ways articulate what we have been saying to the market for many years. The excitement and personal interactions generated by a live auction are the best way to maximise the value of your assets.”
“The Tshwane land release properties are showing great demand. We are confident of surpassing the City’s initial expectations and anticipate some new records to be set in the process,” Chalwin-Milton says. Earlier this year, City of Tshwane appointed High Street Auctions to auction over 80 properties to raise funds to improve the lives of thousands of residents in the city. Some of the auction’s other best performers were Lot 3, a 2.8 hectare piece of open land with exposure to the N1 in Midrand, which sold for 15.5 ZAR million.
Lot 4, a listed property fund instruction raised ZAR27.5 million for the King David Hotel in East London with 80 well-appointed rooms, conference and business facilities. Centrally located, the hotel’s projected NAI exceeds ZAR4.7 million. Lot 30, a 4 bedroom Lavish Residence in Kyalami Estate, sold for ZAR4 million. Lot 43, a Multi Tenanted Industrial Park, in Anderbolt sold for ZAR15.25 million following highly competitive bidding
“The prices we saw at the auction reflect true market value and the sales clearly demonstrate the ability of the auction process to expose stock to hundreds of registered buyers simultaneously.” “The over 40 properties that went on auction this afternoon were quality stock and from the results it is evident that industrial properties were providing the sales drive,” Chalwin-Milton says in conclusion.