Auctions and the commercial property market in 2011

Posted On Thursday, 31 March 2011 02:00 Published by eProp Commercial Property News
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2011 has seen more properties entering the auction market than in the last five years.

Property-Housing-ResidentialThis according to Auction Alliance’s commercial property director, Norman Raad.

“Opportunity only knocks on the door once and you have to seize the moment when it does. Sellers are becoming increasingly realistic due to the existing lending constraints and the reality is that yields have gone up in terms of selling prices,” says Raad.

According to Raad, “Retail remains the flavour of the month with high demand, as experienced at our last multiple auction. Whenever there has been a national anchor tenant in place, the demand has increased and bidding has been fierce.

In April, we will auction a number of small retail centres, with huge potential and good income revenue, including the well-tenanted Lenasia Mall.

Waverley Shopping centre in Pretoria is an extremely busy centre with fully-let residential apartments on the upper floors, the centre is home to the community post office and there is a strong demand for space. The rentals are below market and therein lies the opportunity.

Kathu Shoprite is a stand-alone centre with a  busy Shoprite store, that will provide good value to an investor and the Spar in West Park, Pretoria is well run and pays a below market rental. These properties will fall under the hammer on April 14.”

Last week’s auction in Johannesburg saw the sale of the Emaweni Game Lodge for R28.6m. In the past, Auction Alliance has sold various game farms including Etosha Game Farm, Thuru Lodge Private Game Reserve and Bela Bela Game Farm.

The Emaweni Lodge extends over 4400ha and is well known for its beauty as well as its cultural, archaeological and biological diversity. The property is fully fenced with a conventional game-proof wire fence, is situated in a malaria-free area and the lodge is used for both photographic and hunting safaris.

Raad says as far as the industrial sector goes, Alliance has a number of excellent investment opportunities, with single-tenant industrial properties that are too small for the investment fund owner. The properties are well situated in industrial nodes, including Kew, Midrand and Tulisa Park, are well built, offer good height, yard space and established tenants that are paying market or below market rentals.

The multiple commercial auction held in March saw the sale of an industrial facility in Anderbolt, situated towards the East of Boksburg, for just under R13m. Comments Raad, “With the prevailing economic situation and interest rates at their lowest in years, now is the time to invest''.

Last modified on Wednesday, 11 June 2014 18:08

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