Two retail centres go under hammer

Posted On Wednesday, 19 May 2010 02:00 Published by eProp Commercial Property News
Rate this item
(0 votes)

The Eastern Cape saw its biggest ever auctions recently when two shopping centres, one in East London and the other in Port Elizabeth, went under the Auction Alliance hammer

Rael LevittKing’s Mall in East London and King’s Court in Port Elizabeth, both belonging to the liquidated King Financial Services Group, attracted eager investors from across the country resulting in hotly contested auctions.

The first to fall under the hammer was King’s Mall in East London. The centre was opened in 2007 and is built on a five-hectare site, with over 15 000m² of space, including 44 retail shops, 745 parking bays and 332 storage units. The auction took place on site and within minutes, both investors and onlookers had packed into the mall’s forecourt to be a part of the unique event.

A total of 15 interested buyers had registered to take part in the auction, which included three JSE-listed property funds. The auction kicked off and the price started to rise quickly as there was fierce and competitive bidding between East London-based True Group and a Johannesburg property fund. The final bid eventually came from the True Group at R62 million.

The following day, the Port Elizabeth Kings Court retail centre and 16 apartments and townhouses went on offer. The auction of the centre, which has a retail component of almost 14 000 m², with 392 storage units, and a gross income of over R10 million, attracted a mass of people creating a buzz on the auction floor. The crowd had to be asked numerous times to quiten down as the excitement of the auction was felt throughout the mall. The opening price started at R30 million and after intense bidding from a number of high profile property investors, a final price of R69 million was achieved.

Comments Auction Alliance CEO, Rael Levitt, who conducted both auctions: ‘’The Eastern Cape has never seen such big auctions and we believe the prices achieved reflect the current state of the market. Properties such as these represent fantastic investment opportunities and we are confident that the buyers are happy with their purchases as both centres offer fantastic value.’’

Concludes Levitt: "We sold both shopping centres, with all the leases fully in place. Tenants are secure and can move forward as the sale of the centres will give clarity, finality and direction to both centres.’’

Last modified on Wednesday, 11 June 2014 08:57

Most Popular

It’s cheaper to buy than to rent a home in 2021

Feb 08, 2021
Carl_Coetzee_BetterBond_CEO
If the past year has taught us anything, it is how important our homes have become to us.

SA REIT Association - Chairman's message and 2021 sector outlook

Feb 02, 2021
Estienne de Klerk_Chairman of SAREIT
Real estate has long been a rewarding sector of the financial markets. Like all sectors,…

Thavhani City set for more growth in 2021 as its Motor City and medical developments accelerate

Feb 15, 2021
Thavhani_City_Locality_Layout
Thavhani City mixed-use urban precinct in Thohoyandou, designed to be the future economic…

Brand new residential development in La Lucia 60% sold through Pam Golding Properties

Feb 15, 2021
Kent_Exterior
Such is the consistent high demand for centrally located, well-priced residential…

Attacq successfully concludes two disposals

Feb 01, 2021
Attacq_CIO_ Peter de_Villiers
Attacq Limited, the JSE-listed REIT and owner and developer of the iconic Waterfall…

Please publish modules in offcanvas position.