Auction Alliance will offer an interesting mix of investment properties worth about R55-million, with appeal to both private and institutional buyers, at a portfolio sale on November 10.

Mark Kleynhans of Auction Alliance says the portfolio represents a fine blend of industrial, retail and commercial properties, including what he describes as "an exceptional industrial building" in the Johannesburg suburb of Cleveland.

"This building is truly unique as it not only has highspecification finishes that include oak panelling in the executive offices, but a blue-chip tenant, Altech Data. Underpinning this property is a triple-net lease which runs until May 2012. It is about as good as it gets for the investor."

Under a triple-net lease the tenant must pick up all costs for maintenance of the interior and exterior of the building, as well as operating costs such as rates and taxes, electricity and water.

The property, at 10A Cleveland Road, Cleveland, is 4140m² in size with a total lettable area of 2647m².

Two buildings in Ferndale, Randburg, are coming under the hammer at a time when the Ferndale node is increasingly a preferred destination for small to medium-sized companies.

"Ferndale offers an attractive scenario for employees, who have ready access to the area via public transport and taxi networks, and to employers, who can offer a decent working environment at a reasonable rent, much lower than other areas in the north."

One of the Ferndale properties, Palm Grove office block at 276 Pretoria Road, just off the main intersection of Hendrik Verwoerd Drive and Republic Road, is a four-storey building with a gross lettable area of 3633m². It is a well-let building with two of the main leases running until 2008.

The other property is the fivestorey former Fedics building at 308 Kent Road, opposite the new revenue service building, with gross lettable area of 6000m².

"It is an attractive buy for an investor who takes a view on the resurgence of leasing opportunities in the area, or an owner who wishes to occupy the building for his own business purposes."

Kleynhans says the industrial property at 42 Andries Street in Wynberg, Sandton, represents quality factory space and offices on 3713m². The gross lettable space of about 4500m² is taken up fully with leases in place until December 2009. The building is located in a prime position off the Grayston interchange.

No5 Wessels Road, an office block in Rivonia, offers interesting possibilities. The four free-standing A-grade office blocks with a total lettable area of 4840m² are about 75% let and offer the opportunity for conversion into residential apartments. Annual rental is R2m, but Kleynhans says this is off a low rental base and the building can be re-let at higher rates.

"The residential market in this quiet area is booming and a conversion of the property offers a good investment opportunity."

The buoyancy of the property market has seen a strong demand for investment properties, which has led Auction Alliance to offer another parcel of properties to meet the demand.

The auction will take place at the Hilton Plaza Hotel, Sandton, on November 10 at 11am.

Business Day