King’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.’’
