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Joburg inner city auction feature

Posted On Thursday, 29 September 2011 02:00 Published by eProp Commercial Property News
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The High St Auction Co has announced that its next property auction to be held on 5 October 2011 at Summer Place in Hyde Park at 12h00 will feature a host of inner city Johannesburg properties.

Property-Housing-ResidentialJoff van Reenen, Lead Auctioneer for the High St Auction Co comments, “Downtown Johannesburg is being rejuvenated and as such this is the ideal time for property investors to look for prime property to re-develop not only from a commercial view point but from a residential one.

The City of Johannesburg and its implementing agency, the Johannesburg Development Agency is working proactively to rejuvenate the city centre through The Inner City Property Scheme (ICPS). Currently the Mayor of Johannesburg has allocated an amount of R300 million for inner city regeneration in the current financial year and this includes an amount of R171 million for the Hillbrow, Berea and Yeoville public environment upgrade.  These municipal initiatives are already visible in respect of improving surrounding neighbourhoods.”

Some of the inner city properties to come under the hammer on the day include:

WELLINGTON COURT  - 34 LEYDS STREET, JOUBERT PARK, JOHANNESBURG
Wellington Court, located on Leyds Street is a seven storey residential apartment block consisting of forty eight units.  This 2893m² building on a stand measuring 465m² is zoned for Residential 4. Leyds Street is located in the inner city and is in close proximity to Braamfontein, Parktown and Berea. The property is easily accessible via the M1 Highway, Louis Botha Road and Empire Road.

A new Rea Vaya bus station & the Joubert Park Taxi Rank are both located within walking distance to the property. The Joubert Park & Art gallery is located on Twist Street across the road. The property’s reception is located on Leyds Street and features both a central concrete staircase and as well as a passenger lift. There are typically six units per floor with a penthouse and staff quarters located on the roof. Access to the basement is via the adjacent building Bethlehem Court.

Current information provided to the auctioneer suggests that Wellington Court is fully occupied at present with flat rentals varying between R1500 to R2000 for bachelor flats, R2000 to R2500 for one & two-bedroom units and between R2500 to R4500 for three-bedroom units. 

WANDERERS HOME  44 WANDERERS STREET, JOUBERT PARK, JOHANNESBURG
Wanderers Home is an eight storey mixed use building located on  Wanderers Street between Leyds and Bok Street in the Johannesburg inner city. This 3848 m² building which is built over 3 stands is zoned for Business 1.

The area directly surrounding the property features a general typical inner city neighbourhood in Johannesburg, with close proximity to the M1 Highway, Louis Botha Road and Empire Road. The property is situated opposite Johannesburg Park Station, coach and taxi ranks and the Bridge Shopping Centre further down street.

The buildings and the surrounding area appear in fair state with the streets active with retail businesses and consumers. Wanderers Home is  primarily a residential property with the added advantage of two ground floor street front shops with a GLA of 99m2 . There building features are 35 units across the seven upper floors.

Flat rentals vary between R1500 to R2000 for bachelor flats, R2000 to R2500 for one & two-bedroom units and between R2500 to R4500 for three-bedroom units. Street front shops sized between 10m² to 50m² vary between R150/m² to R500/m² and sized 50m² to 500m² between R45/m² to R500/m².  The building has a single lift as well as a concrete stairwell which provides access to the upper floors. In addition to this there is an external steel fire escape.

217 COMMISSIONER STREET, JOHANNESBURG CBD

217 Commissioner Street  is a 3200m² seven storey face brick building which has general zoning and was originally utilised as workshop and multi floor industrial warehouses.  The property has exposure from Joe Slovo Drive and is currently vacant. The entrance is located on Commissioner Street giving way to a double volume reception area, with both a heavy duty goods lift and a passenger lift, and internal stair case allowing access to the above floors and lower basement areas. The floors follow an open plan layout and higher than average ceilings height supporting sufficient space for suspended ceilings and air-ventilation installations.

The floors have large windows allowing significant natural lightning. The building has potential to be converted into residential apartments due to its large open spaces. In addition, the basement area and ground floor on ground level can be converted into a parking area providing ample tenant parking.

Current research shows that Flat rentals in the area vary between R1500 to R2500 for a bachelor flat, R2500 to R3500 for one & two-bedroom units and between R3400 to R4500 for three-bedroom units. Alternatively, the building can generate additional income by the means of a “building wrap”. A local advertising agency advised in their opinion that a “building wrap” of a 100m² in size, could generate an income in the range of R20 000 to R30 000 per month.

This is due to its proximity to the freeway. The area is characterised with not only large commercial concerns but numerous buildings in the area have been successfully converted into residential offerings.  Furthermore the surrounding area offers a variety of public services in respect of domestic retail shopping centres, medical clinics and or surgeries, places of religion, public transport and other facilities. The property enjoys very good exposure and is conveniently located towards all surrounding main arterial routes being easily accessible.

Van Reenen concludes, “The rental market for residential accommodation in Johannesburg CBD areas is in fact tremendously good and in demand as can be seen from the amount of inner city stock that is on our books and although the older buildings in the area are perceived to create negative factors the local municipality and investors are working together proactively and have formed a strategy to upgrade and improve circumstances within the surrounding areas.”

Last modified on Monday, 09 June 2014 14:20

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